This paper describes the cost and operational effectiveness analyses being conducted on the STRICOM Embedded Simulation program. The program is developing Embedded Simulation (ES) to support Embedded Training (ET) and Embedded Operations (EO) for Army ground vehicles. The near term target for this program is the M1A2 SEP Abrams main battle tank. The basic approach to this cost effectiveness analysis is to determine the costs of various live training exercises and compare these costs to those that would be incurred using ET technology. Live training costs include operation and maintenance costs for the trainees' vehicles, other blue forces (BLUFOR) vehicles and for the opposing force (OPFOR) vehicles, as well as for range operation costs. The authors have gathered data on miles driven for various training exercises (e.g. Hasty Attack) as well as detailed operating costs (e.g. O&S Class IX Parts, Petroleum, Oil and Lubricants (POL), and Intermediate Maintenance) for the Abrams Tank and Bradley Fighting Vehicles. These data were derived from the OSMIS (Operating and Support Management Information System) database. OSMIS is the U.S. Army's source of historical operating and support cost information for tactical units. With this information, we were able to calculate the costs of various live training exercises. We then calculated the costs of equivalent exercises using ET technology. During embedded training exercises, some vehicle components are active and other components are not. Consequently, we were able to calculate the operating costs of vehicles during various types of embedded training exercises (moving, vehicle stationary, turret stationary). This allows us to predict the relative cost effectiveness of embedded vs full-up live exercises without making the naive assumption that embedded training costs nothing. These cost savings are compared to ET acquisition costs to determine the payback period. These costs are expected to decline over time as the state-of-the-art produces smaller, faster and cheaper computers and displays. This paper discusses the results of this cost effectiveness analysis.