Is an EV Charging Station Profitable? The Utilization Math

Short answer: a charging station makes money when the margin on the energy it sells covers its fixed costs. Utilization — the share of hours a charger is actually charging — connects the two. Calculate the break-even utilization for every site:

Break-even utilization = fixed annual costs ÷ (8,760 h × average power while charging × margin per kWh)

In the worked example below, a 120 kW dual-connector DC charger breaks even at about 16 % — close to the 16.4 % average of US DC fast chargers in 2025. Site choice, price margin, demand charges and uptime decide which side of that line a site ends up on.

The three numbers that matter

Number	What it is	Typical source
Fixed annual costs	Costs you pay whether or not cars come: equipment financing or depreciation, grid demand and standing charges, software and SIM fees, maintenance contract, site lease or revenue share, insurance	Quotes, utility tariff, contracts
Average power while charging	Energy delivered per hour of use — lower than the rated power, because cars taper and many accept less	Charger data, vehicle mix
Margin per kWh	Selling price minus energy cost, payment and roaming fees, and variable software fees	Price list, energy tariff

Utilization is the result you need to reach — or the assumption you test.

Worked example: a 120 kW dual-connector DC charger

Example values only — replace them with your quotes, tariff and prices.

Assumption	Value
Rated power	120 kW, two connectors
Average power while in use	60 kW (tapering, 400 V cars, one car at a time for much of the day)
Selling price	$0.48 per kWh
Energy cost (excluding demand charges)	$0.18 per kWh
Payment, roaming and variable software fees	$0.05 per kWh
Margin per kWh	$0.25
Fixed annual costs (financing, demand charges, software, maintenance, lease)	$21,000

Energy sold per year at 100 % utilization: 8,760 h × 60 kW = 525,600 kWh.

Break-even utilization: $21,000 ÷ (525,600 kWh × $0.25) = 16 %, or about 3.8 hours of charging a day.

Utilization	Hours charging per day	Energy sold per year	Annual margin	Result after fixed costs
5 %	1.2	26,300 kWh	$6,600	−$14,400
10 %	2.4	52,600 kWh	$13,100	−$7,900
15 %	3.6	78,800 kWh	$19,700	−$1,300
20 %	4.8	105,100 kWh	$26,300	+$5,300
25 %	6.0	131,400 kWh	$32,900	+$11,900
30 %	7.2	157,700 kWh	$39,400	+$18,400

The shape matters more than the exact numbers: fixed costs make low-utilization sites lose money, and high-utilization sites very profitable. That is why site choice and a realistic ramp-up dominate every charging business plan.

What moves the break-even point

Change	Effect on break-even utilization (example)
Margin +$0.05/kWh (higher price or cheaper energy)	16 % → about 13 %
Demand charges +$5,000 a year	16 % → about 20 %
Average power 60 → 80 kW (more 800 V cars, two cars at once)	16 % → about 12 %
Fixed costs −20 % (grant, cheaper finance)	16 % → about 13 %

Uptime counts twice

A charger that is down earns no margin while its fixed costs continue. A month of downtime costs one twelfth of the annual margin — and drivers who find a broken charger may not come back. Remote monitoring, modular power that keeps a cabinet running at reduced power, a spare-parts kit and a fast service process protect the business case; see EV charger uptime.

How to raise utilization

1. Choose the site for traffic and dwell time — see site selection.
2. Anchor customers: a taxi, ride-hailing or delivery fleet using the site at night fills idle hours.
3. Be visible: signage from the road, listing on maps and roaming platforms.
4. Easy payment: card and QR code, not only an app — see payment options.
5. Price by time of day to move demand into quiet hours — see how to price EV charging.
6. Build in phases: start with the chargers demand supports, with ducting and grid capacity for more.

AC sites: a different calculation

AC chargers sell less energy per hour and usually at lower prices, but they are cheap to install and rarely trigger demand charges. Their business case often rests on what the charger supports — hotel nights, retail visits, parking fees, staff benefits, apartment value — rather than on energy margin alone. Use the same formula with AC values, and add the indirect revenue you expect.

Use the calculator below to estimate charging times and energy for your vehicle mix, then put your own costs into the formula. For the full planning document, see our business plan template and the EV charging business guide.