Rolling contact fatigue initiated defects such as surface corrugation, head check, squat, are one of growing problems in high speed railway line. A squat is generally developed below the rail surface and grows parallel to surface until it turns down into rail. Estimation of critical crack size and crack growth rate is an essential to prevent rail from failure and develop cost effective railway maintenance strategy. In this study, we predict crack growth rate of a rail with a squat defect. For this purpose, a rail model with a squat defect is developed. Timoshenko’s beam theory is applied to calculate the global bending stress at the crack tip and Hertzian contact model is applied to calculate the local contact stresses at the surface of rail by simulating rolling over a railway wheel on a rail. Stress intensity factors are calculated from the total stress at the crack tip. Fatigue crack growth curve of 60kg rail steel is applied to calculated crack growth rate. Software to predict crack growth life through whole life cycle is developed. We expect that we can make a more cost effective rail maintenance strategy by considering the crack growth analysis for a defective rail.