Context. Software Reuse is considered as silver-bullet for software development. However, measuring bene ts of software reuse is difficult and cumbersome task because of varying number of factors involved in it. Di erent reuse cost models already exist in literature which measure var- ious di erent attributes of software reuse. Mainly these models are used for calculating return over investment or cost-bene t analysis. Objectives.We have investigated that very few cost eco- nomic models have been proposed for measuring costs avoidance,degree of empirical validation, assumptions, types ofartifacts they can measure and whether they provide guide- lines on collection of metrics for measuring reuse bene ts. Methods.In this research, a systematic review was con- ducted. Based on the results of systematic review, a model was proposed which can measure cost avoided by reuse of every kind of artifact. In a systematic all major article sources were used. Studies were selected after reading titles and abstracts. Three cost avoidance models were found and an analysis of these models was performed. Based on the analysis, a new model was proposed to ll the gap left by these studies. Results. New model measures every kind of reuse artifact and provides guidelines on how and what to measure in order to calculate reuse bene ts. This model was then validated in the industry and technology was transferred to the industry for future usage. Guidelines for improved savings were developed. Conclusions. We conclude that many models are related to each other and use similar techniques to measure the cost avoidance however they can not measure all kinds of reuse artifacts. New model performed well in industry. However, we found that the new model should accommodate maintenance costs since these are major savings by software reuse. Moreover, we conclude that there is a need for further validation of guidelines and model in industry.