The current work deals with the problem of rolling contact fatigue found in railway wheels. The finite element method is adopted to mathematically model the wheel-rail system and simulate the loads acting in the system. Results from the multi-body simulation software SIMPACK are integrated in the wheel-rail model developed using the finite element code ABAQUS/Explicit. Different loading scenarios and combinations of these scenarios are analyzed. Reaction forces, reaction moments, slip rates, plastic deformations, stresses and strains in the system are studied. A detailed analysis is made for the plastic strain and the eventual possible damage accumulated in the contact region of the wheel. The detailed analysis is facilitated by modeling only a part of the wheel rather then modeling the complete wheel. A fine mesh in the contact region enables a magnified overview of the development of various physical quantities in the region. Dynamic and quasi-static models are developed. ABAQUS/Standard is used to determine the accumulation of plastic strain in the contact region in a wheel under repeated loading. The damage indicator concept is integrated with the ABAQUS/Standard calculation using a FORTRAN code. A comparison of the results obtained from cyclic loading calculations is made with the shakedown map for a point contact, thus the validity of the shakedown theory in the wheel-rail contact problem is looked upon. Qualitative and quantitative conclusions are drawn regarding the development of damage under the normal service life of a railway wheel. Various loading scenarios identified by the normal load and the traction coefficient are investigated and compared.