Hybrid optimization model for electric renewables (HOMER), developed by National Renewable Energy Laboratory (NREL), enables economic analysis for single source and hybrid distributed energy resources (DERs). However, current version of HOMER does not support microgrid analysis. In this paper, economic analyzer for distributed energy resources (EADER) is developed. It finds minimum cost of energy (COE) and optimal mix of DERs with multiple sources and sinks. In addition to single source distributed generator (DG) and hybrid DG, EADER is also capable to analyze microgrid. EADER results are validated for single source DG and hybrid DG with results obtained from HOMER for the same systems. Further, a sample practical system from Western Maharashtra, India, is analyzed using EADER. The results which consider all practical constraints are presented and discussed.