In the construction and maintenance of asphalt pavement, reclaimed asphalt pavement (RAP) is being widely used as a cheaper alternative to the conventional hot mix asphalt (HMA). HMA incorporated with a high RAP content (e.g., 40%), which is the most commonly used, may have prominent adverse effects on life cycle, performance properties, and related costs. Thus, before utilizing RAP, it is essential to investigate whether it is still economical to use under the local climate by taking into consideration the life cycle performance. Therefore, for this paper, a case study was conducted using 20% RAP, assessed in terms of materials related to cost analysis. The results of the analysis showed that, from the total life cycle costing measurement, a total of 14% cost reduction was reported using RAP as compared to conventional materials. Moreover, the two materials (conventional HMA and RAP) are manufactured in different types of manufacturing plants. Thus, in analyzing the cost difference between the two chosen manufacturing plants for virgin materials and RAP, a total of 57% cost reduction was observed for a RAP manufacturing plant. Besides this, no cost difference was observed in the rest of the phases, such as manpower, materials transportation, and construction activities, as the same procedures and types of machinery are used. Furthermore, assessing the carbon dioxide impact and cost, the transportation and machinery emissions were considered, while the plant’s operation emission was omitted due to the unavailability of the data.