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. The findings emphasize that adult day programs are most effective for dementia caregivers who use these services consistently and for longer periods of time. Moreover, practitioners must develop methods to encourage early utilization of adult day services during the caregiving career to increase the range of benefits.