In the past, railway maintenance actions were usually planned based on the knowledge and experience of the infrastructure owner. The main goal was to provide a high level of safety, and there was little concern about economic and operational optimisation issues. Today, however, a deregulated competitive environment and budget limitations are forcing railway infrastructures to move from safety limits to cost-effective maintenance limits to optimise operation and maintenance procedures. By so doing, one widens the discussion to include both operational safety and cost-effectiveness for the whole railway transport system. In this study, a cost model is proposed to specify the cost-effective maintenance limits for track geometry maintenance. The proposed model considers the degradation rates of different track sections and takes into account the costs associated with inspection, tamping, delay time penalties, and risk of accidents due to poor track quality. It draws on track geometry data from the Iron Ore Line (Malmbanan) in northern Sweden, used by both passenger and freight trains, to estimate the geometrical degradation rate of each section. The methodology is based on reliability and cost analysis and facilitates the maintenance decision-making process to identify cost-effective maintenance thresholds.