Estimated production costs of solar energy systems serve as guides for future component development and as measures of the potential economic viability of the technologies. The analysis of heliostat costs is particularly important since the heliostat field is the largest cost component of a solar central receiver plant. A heliostat cost analysis tool (HELCAT) that processes manufacturing, transportation, and installation cost data has been developed to provide a consistent structure for cost analyses. HELCAT calculates a representative product price based on direct input data (e.g. direct materials, direct labor, capital requirements) and various economic, financial, and accounting assumptions. The characteristics of this tool and its initial application in the evaluation of second generation heliostat cost estimates are discussed. A set of nominal economic and financial parameters is also suggested.