This paper is concerned with cost analysis model in free-replacement policy. The free-replacement policy with minimal repair is considered as follows: in a manufacturer`s view point operating unit is periodically replaced, if a failure occurs between minimal repair and periodic maintenance time, unit is remained in a failure condition. Also unit undergoes minimal repair at failures in minimal-repair interval. Then total expected cost per unit time is calculated according to parameter of failure distribution in a view of consumer`s. The expected costs are included repair cost and usage cost: operating, fixed, minimal repair and loss cost. Numerical example is shown in which failure time of item has beta distribution.