This paper shows an optimization study on calculating the optimum replaced wheel diameter in internal grinding of stainless steel. In this work, the effects of the input factors, including the initial diameter, the grinding wheel width, the ratio between the length and the diameter of the work-pieces, the dressing depth of cut, the wheel life and the radial grinding wheel wear per dress on the optimum replaced grinding wheel diameter were considered. Also, the effects of cost components, including the cost of the grinding machine and the wheel cost were examined. Moreover, to estimate the influences of these parameters on the optimum replaced diameter, a simulation experiment was given and conducted by programming. From the results of the study, a regression equation was proposed to calculate the optimum replaced diameter.