The external walls and roof of a building are the interface between its interior and the outdoor environment. Insulation of the external walls and roof is the most cost-effective way of controlling the outside elements to make homes more comfortable. Although insulation is generally accepted as a factor increasing the building costs, with the calculations we have shown that this is not the case. Fuel consumption and operational costs are reduced by increasing the thickness of the external walls and roof (ceiling), despite an increase in the investment costs. According to Turkish Standard Number 825 (TS 825), there are four different degree-day (DD) regions, and the required heat loads for the buildings in these regions exhibit large differences. Therefore, a method based on costs is needed for the determination of optimum insulation thicknesses of different DD regions. In this study, optimum insulation thicknesses for different DD regions of Turkey, namely, Izmir (DD: 1450), Bursa (DD: 2203), Eskisehir (DD: 3215) and Erzurum (DD: 4856), have been determined for a lifetime of N years, maximizing the present worth value of annual energy savings for insulated external walls. (C) 2007 Elsevier Ltd. All rights reserved.