Cogeneration system produces power as well as heat recovered from waste heat during power generation process. This system has higher energy efficiency than that of the power plant. In this study the optimal design for the cogeneration system with the increase of the capacity considering life cycle cost(LCC) analysis has been performed in the general facilities such as hotels and hospitals under the assumption of electricity cost of 95 won/kWh, the initial cost of cogeneration system of 1,500,000 won!kW and the value of 0.5${sim}$1.0 in the ratio of heat to power. The optimal ratio of cogeneration capacity divided by average electricity load of facility was found out more than 0.5 in case of electricity cost with the increase of>30%, and the percentage of $CO_2$ reduction was about 9%. The most important factors in the economic analysis of cogeneration system was found out the electrity cost and the initial cost of cogeneration system. Also the ratio of heat to power at the value of>0.5 was not affected in the economy of cogeneration system, but was very important in the $CO_2$ reduction.