In countries that import most of their energy, like Turkey, energy saving and the effective usage of energy become much more important. Energy consumption for heating is too high in Turkey because buildings have almost no insulation. Also the high prices of heating energy in Turkey, emphasize the need for energy saving. Therefore, the optimum insulation-thickness of the external wall for the five different energy-sources (coal, natural gas, LPG, fuel oil and electricity) and two different insulation materials (expanded polystyrene, rock wool) are calculated for Denizli. The optimization is based on a life-cycle cost analysis. According to the results, the optimum has been obtained by using coal as the energy source and expanded polystyrene as the insulating material. When the optimum insulation-thickness is used the life cycle saving and payback period are 14.09 $/m(2) and 1.43 years, respectively. (c) 2005 Elsevier Ltd. All rights reserved.