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A plug-in hybrid electric vehicle (PHEV) design with design parameters electric motor size, engine size, battery capacity, and battery chemistry type, is optimized with minimum cost as a measure of merit. The PHEV is required to meet a fixed set of performance constraints consisting of 0-60 mph acceleration, 50-70 mph acceleration, 0-30 mph acceleration in all electric operation, top speed, grade ability, and all electric range. The optimization is carried out for values of all electric range of 10, 20, and 40 miles. The social and economic impacts of the optimum designs in terms of reduced gasoline consumption and carbon emissions reduction are calculated. Argonne National Laboratory's Powertrain Systems Analysis Toolkit is used to simulate the performance and fuel economy of the PHEV designs. The costs of different PHEV components and the present value of battery replacements over the vehicle's life are used to determine the design's drivetrain cost.