A system and method for generator startup cost modeling using a time counter are described herein. A method and system according to the invention may include assigning a binary value to one or more time segment variables each associated with an increment of the time counter wherein the sum of the one or more time segment variables is greater than or equal to a binary startup variable. The method and system may also assign a value to one or more startup cost variables associated with each of the one or more time segment variables. The system and method may then determine the startup cost of a shutdown time by summing the products of each time segment variable and associated startup cost variable. In another aspect the method and system may entail a sum of products of each binary time segment variable and time increment being less than or equal to a time-off variable.