A computer program for preliminary cost estimates of free and immobilized enzyme systems has been developed. The cost for the hydrolysis of lactose by β-galactosidase from Aspergillus oryzae has been calculated for a batch tank reactor, with free (BTRF) and immobilized (BTRI) enzymes, a continuously stirred tank reactor (CSTR) and a plug-flow tubular reactor (PFTR), considering the mass transfer behavior and deactivation of the enzyme. Enzyme immobilization is economically feasible, compared with a system with free enzymes, despite a very high cost for the enzyme attachment. At a half-life time of 80 d, the PFTR gives the lowest cost (0.48 SEK/kg lactose), but the cost for the BTRI is just slightly higher (0.66 SEK/kg lactose) and still much lower than the BTRF (2.10 SEK/kg lactose). © 1990 Humana Press Inc.