This article reviews the value of cost-effectiveness analysis for evaluation and decision making with respect to educational programs, and discusses its application to early reading interventions. We describe the conditions for a rigorous cost-effectiveness analysis and illustrate the challenges of applying the method in practice, providing examples of programs for which we have estimated costs, but find effectiveness data lacking in comparability. We provide a demonstration of how cost-effectiveness analysis can be applied to two early reading programs: the Wilson Reading System and Corrective Reading.