This paper presents a simulation-driven method for assessing the safety and efficiency of traffic at roundabouts incorporating connected and automated vehicle (CAV) technology. Utilizing the newly proposed CAV-based factors specified by the Highway Capacity Manual (HCM) provided a practical framework for analyzing capacity dynamics across various traffic scenarios. Using microscopic traffic simulation on a roundabout model replicating real-world geometry and traffic attributes facilitated the identification of crucial behavioral parameters. This simulation spanned from smooth traffic scenarios to operational saturation, aiding in the study of mixed traffic scenarios during the transition to increasing CAV presence. Additionally, the study assessed the safety and traffic impact of a dedicated CAV lane using surrogate safety metrics. Aimsun software aided in model parameter calibration, which, combined with the Surrogate Safety Assessment Model (SSAM), supported safety analysis. Despite observed enhancements in roundabout performance with CAV integration, the benefits of a designated CAV lane highlighted the potential to reduce conflicts among vehicles. In conclusion, the paper emphasizes the overall performance enhancement achieved with CAVs at roundabouts while also providing insights for evaluating the potential of CAV technologies in future mobility management strategies.