This study analyzes the short- (3 months) and long-term (1 year) cost implications of adult day care, a community-based program that has gained attention for its positive impact on dementia caregivers. A variety of costs (e.g., adult day services, formal service use, informal sources of care, employment changes) were estimated for caregivers (n = 367 at 3 months; n = 201 at 1 year). Results found that the daily costs to reduce caregivers' role overload and depression decreased with adult day service utilization over a 1-year period.