A treatment planning method and system for optimizing a treatment plan used to irradiate a treatment volume including a target volume, such as a tumor, is disclosed. According to the method, two dose calculation algorithms are used to develop the optimized treatment plan. A first dose calculation algorithm is used to obtain substantially complete dose calculations and a second, incremental, dose calculation algorithm is used to make more limited calculations. The incremental calculations may be performed, for example, with less precision, less accuracy or less scope (e.g., focused on a specific subvolume within the treatment volume) in order to reduce the time required to achieve an optimized plan. Each of the dose calculation algorithms may be iterated a plurality of times, and different cutoff criteria can be used to limit the number of iterations in a given pass. A treatment planning system of the invention uses software for implementing the complete and incremental dose calculation algorithms. The method and system are especially useful for IMRT and arc therapy where treatment plan optimization is particularly challenging.