Residential buildings need demand of energy for both heat and electricity. However, it’s not always possible to meet this need by using individual panels due to the limited roof area. In addition, performing electrical and thermal energy production by using separate panels causes loss of performance and efficiency. The hybrid photovoltaic thermal (PV/T) collectors could be used in order to meet this necessity into the same collector. This paper investigates the performance and economic analysis of a PV/T collector for a building application in Turkey climatic conditions. For this purpose, the Matlab/Simulink model of the PV/T collector was prepared. The electrical and thermal performance of the PV/T collector has been investigated by changing various parameters on this model. In addition, market survey was conducted for economic analysis. 11 different input variables such as average daily irradiation, electrical and thermal efficiency, price of electricity and heating, operation and management cost, capital cost, debt to equity ratio, interest rate, discount rate and inflation rate are used to calculate the economic evaluation parameters such as net present value (NPV), levelized cost of energy (LCOE) and payback period (PBP). The results show that, the mean value of LCOE, NPV and PBP are 0.0467 €/kWh, 7905.3 € and 6 years respectively for the project size at 8.96 m2 which is consist of 7 panels in the 25 years life cycle. Also, the average electrical and thermal efficiencies are defined as 13.4% and 69.3% respectively during.