The energy consumption and carbon emissions caused by building materials on a global scale highlight the importance of material selection, especially in the frequent use of formwork materials in the construction industry. The service life of these materials and the environmental effects of planning based on their use are critical factors. The selected materials' service lives directly affect the total amount of planned material for construction, and this is responsible for a series of carbon emissions throughout the materials' life cycle. In this study, four different formwork materials were evaluated in terms of their environmental impact and cost within the scope of a mass housing project, considering their service lives. The results of the study revealed that, when the service lives of the materials were considered equal, the carbon emission value of the steel formwork system was 19 times higher than that of the traditional timber formwork system. However, when the service lives were not considered equal, this situation was completely reversed, and it was determined that the traditional timber system had 60.6% more global warming potential than the steel formwork panel system. The fact that metal formwork systems cause less environmental impact due to their longer service lives reveals how important service life and reuse are in determining the environmental performance of materials. When the materials were evaluated in terms of cost, it was concluded that the traditional timber formwork system would be more economical for a single house (96.3% more cost-effective compared to the steel formwork system), and the steel panel formwork system would be more economical for mass housing projects (70% more cost-effective compared to the traditional timber formwork system).