The performance of flexible pavement with unreinforced clayey subgrade and subgrade reinforced using recycled rubber and natural jute fibers is analyzed using a two-dimensional axisymmetric model in Plaxis 2D software. The input parameters were obtained from the results available from various laboratory studies using different percentages of fiber materials. Dynamic loading conditions with single axle- single wheel load and varying traffic conditions of 50 and 150 msa have been considered. The vertical displacements under the wheel load and critical strains such as vertical compressive strain on top of the subgrade and horizontal tensile strain below the bituminous layer were the key parameters determined, and a parametric study by varying layer thicknesses was conducted. Layer thickness reduction (LTR%) and Traffic Benefit Ratio (TBR) were considered, from which a modified design chart has been suggested. Material cost analysis was done to estimate the economic benefits due to fiber reinforcement based on the reductions in the volume of construction materials required.