One of the most difficult tasks facing highway administrators is how to efficiently manage the allocation of road funds. In this paper a comprehensible, easy-to-use, highway management tool is presented. This tool takes the form of a computer simulation model which is intended to assist managers of a network of highways to make better decisions concerning the allocation of scarce funds. It mainly simulates the effects of different investment strategies and maintenance options on the road network. This is done by tracing the life-cycle costs of the major activities of providing and maintaining the road system, and by considering the effects that these activities have on the state and performance of the road network.