Cost issues associated with year-round schools (YRS) are examined in this paper, which asserts that the cost of operating a YRS program depends on a district's classroom space and student population. YRS is recommended if there is a need to utilize classroom space or school facilities more efficiently to accommodate a student population that exceeds a district's available classrooms. Use of the multiple-track plan, as opposed to the single-track plan, can yield substantial savings in both operating and capital costs. The simulation-cost model is recommended as the optimal approach for analyzing the cost of YRS. This paper explains four cost-analysis categories for examining YRS and traditional-calendar school (TCS) costs: avoided, transition, projected operating, and incidental costs. A formula that combines the four cost categories and the simulation-cost model is offered as a way to compare a YRS budget with a simulated TCS program budget. A conclusion is that YRS programs have the potential to reduce educational costs in communities experiencing population growth. However, other factors, such as academic program efforts and social considerations of the stakeholders, must be incorporated into the information system. Two figures and four tables are included. (LMI)