In this paper, the new approach of constructal theory has been employed to design shell and tube heat exchangers. Constructal theory is a new method for optimal design in engineering applications. The purpose of this paper is optimization of shell and tube heat exchangers by reduction of total cost of the exchanger using the constructal theory. The total cost of the heat exchanger is the sum of operational costs and capital costs. The overall heat transfer coefficient of the shell and tube heat exchanger is increased by the use of constructal theory. Therefore, the capital cost required for making the heat transfer surface is reduced. Moreover, the operational energy costs involving pumping in order to overcome frictional pressure loss are minimized in this method. Genetic algorithm is used to optimize the objective function which is a mathematical model for the cost of the shell and tube heat exchanger and is based on constructal theory. The results of this research represent more than 50% reduction in costs of the heat exchanger. (C) 2010 Elsevier Ltd. All rights reserved.