The economic viability of on-road wireless charging of electric vehicles (EVs) strongly depends on the choice of the inductive power transfer (IPT) system configuration (static or dynamic charging), charging power level and the percentage of road coverage of dynamic charging. In this paper, a case study is carried out to determine the expected investment costs involved in installing the on-road charging infrastructure for an electric bus fleet. Firstly, a generic methodology is described to determine the driving range of any EV (including electric buses) with any gross mass and frontal area. A dynamic power consumption model is developed for the EV, taking into account the rolling friction, acceleration, deceleration, aerodynamic drag, regenerative braking and Li-ion battery behavior. Based on the simulation results, the linear dependence of the battery state of charge (SoC) on the distance traveled is proven. Further, the impact of different IPT system parameters on driving range is incorporated. Economic implications of a combination of different IPT system parameters are explored for achieving the required driving range of 400 km, and the cost optimized solution is presented for the case study of an electric bus fleet. It is shown that the choice of charging power level and road coverage are interrelated in the economic context. The economic viability of reducing the capacity of the on-board battery as a trade-off between higher transport efficiency and larger on-road charging infrastructure is presented. Finally, important considerations, like the number of average running buses, scheduled stoppage time and on-board battery size, that make on-road charging an attractive option are explored. The cost break-up of various system components of the on-road charging scheme is estimated, and the final project cost and parameters are summarized. The specific cost of the wireless on-road charging system is found to be more expensive than the conventional trolley system at this point in time. With decreasing battery costs and a higher number of running buses, a more economically-viable system can be realized.