Electrocoagulation is a promising technique that can be used to treat the effluent generated by textile industries. Textile industries are water intensive and effluent generated by them contains high biological oxygen demand, chemical oxygen demand, dyes (chemically stable and some are toxic) and heavy metals. The presence of color, toxic dyes, and heavy metals, even at lower concentration in the effluents lead to aesthetic and chemical pollution. Electrocoagulation uses in-situ generated coagulant to remove the pollutant from the wastewater. In the present study, synthetic reactive orange 4 dye solution was used as model pollutant and punched aluminum electrodes were used as anode and cathode. Anode and cathode has 4 holes and diameter of each holes are 4 mm. In this study, the impact of current, initial solution pH, initial dye concentration, and inter-electrode distance on the effectiveness of the electrocoagulation process was studied. The research involved the calculation of color removal efficiency, electrical energy consumption, and operating costs for electrocoagulation. A 96.50% reduction in color was achieved by applying a current of 0.05 A, and maintaining a 1.0 cm inter-electrode distance, with an initial dye concentration of 100 ppm. At these operating conditions, the electrical energy consumption of 2.058 kWh/m3 and operating cost of 0.649 US$/m3 was obtained.