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Many institutions see online and blended models of education as a means to reduce overall costs, while simultaneously increasing student access to educational opportunities. However, few such interventions have been examined to establish financial costs and weigh these against the benefits or effectiveness in terms of educational outcomes. This paper reviews what is known regarding costs and effectiveness of online and blended learning programs. Subsequently, the ingredients method of cost analysis is applied to one particular blended learning intervention, the School of One, to yield a per pupil cost estimate of $1,217. Balanced against effectiveness studies that show School of One student achievement is no higher than for students being taught traditionally, this analysis suggests the expenditure is not warranted.