Abstract: A performance and cost analysis system and method comprises an output system; a calculation system operatively inputting data to the output system, wherein the calculation system is adapted to process system engineering and cost parameters of a system under analysis, make changes to the system engineering and cost parameters of the system under analysis, and calculate effects of factors influencing the system under analysis based on the changes made to the system engineering and cost parameters; an input model system operatively inputting data to the calculation system; and an input data system operatively inputting data to the calculation system and the output system, wherein the output system is adapted to identify changes to the system under analysis based on the calculated effects, and calculate a life cycle cost of the system under analysis based on the identified changes. Preferably, the system under analysis comprises hardware architecture components.