A fusion reactor systems code has been developed to evaluate the economic potential of power generation from a toroidal magnetic fusion reactor using deuterium-deuterium (D-D) fuel. A method similar to that developed by J. Sheffield1 for deuterium-tritium (D-T) fuel was used to model the generic aspects of magnetic fusion reactors. The results of the systems study and cost evaluation show that the cost of electricity produced by a D-D reactor is two times higher than that produced by an equivalent D-T reactor design. The significant finding of the study is that the cost ratio between the D-D and D-T systems can potentially be reduced to 1.5 by improved engineering design and even lower by better physics performance. The absolute costs for both systems at this level are close to the costs for nuclear fission and fossil fuel plants.