This paper describes a personal-computer-based model estimating the economic losses associated with clinical bovine respiratory disease in replacement heifers raised on individual dairy farms. The model is based on the partial-budgeting technique, and calculates the losses for two types of the disease separately: calf pneumonia and a seasonal outbreak. Model input includes farm-specific data such as the incidence of bovine respiratory disease, prices, and effects of the disease on the heifers' productivity. The input database was linked directly with the economic model. For all input parameters, default values used are available to the user and can be modified easily. Losses considered by the model include treatment expenditures and costs associated with increased mortality, increased premature culling, reduced growth, reduced fertility and reduced milk production in first lactation. Uncertainty is taken into account for parameters related to disease incidence, mortality and culling.Basic calculations for a typical Dutch dairy farm with 60% of the heifers (<3 months) affected, indicated total annual losses due to pneumonia average 31.2 per heifer present on the farm (range 18.4-57.1). The estimated losses for one seasonal outbreak with heifers up to 15-months old affected were 27.0 per heifer present (range 17.2-43.1). For both BRD types, the model's outcome was most sensitive to the number of heifers affected. Most of the parameters that had a major impact on the total losses were related to treatment or to the effects on the heifers' productivity. The model is user-friendly and flexible, and can be used as an interactive tool by farmers and veterinarians in the (economic) decision-making process regarding on-farm prevention and control of bovine respiratory disease.