OBJECTIVES: To calculate the incremental cost-effectiveness of docetaxel-adriamicine-cyclophosphamide (TAC) against adriamicine- cyclophosphamide- 5 flourouracil (FAC) in treatment of breast cancer in south of Iran. METHODS: a double blind study was applied on a cohort of 100 patients suffering from breast cancer with node- positive in the radiotherapy center of Namazi hospital, Shiraz, Iran. The European organization for research and treatment of cancer questionnaire (EORTC QLQ-C30) was used for the measuring of quality of life at the first and last session of chemotherapy cycle. Third-party payer perspective was applied for costing side of evaluation. At last, two-way sensitivity analysis was used for ensuring the robustness of the results. RESULTS: In spite of the same quality of life score at the first session of chemotherapy (74.5 out of 100), after finishing the chemotherapy cycle, patients in TAC arm had the lower score of QOL (64 in TAC versus 68 in FAC) and higher range of toxicity and their medical costs were higher as well (the average costs in TAC was 391,176,968.2 Rials versus 2,427,775.2 in FAC). ICER was negative that showed the dominant result for FAC comparing with TAC. CONCLUSIONS: It seems that because of the short horizon of the study, TAC regimen had the worse impact on the patient’s quality of life during the chemotherapy cycle because of more side effects than FAC. It is believed that there is need for other studies with longer time horizons and specific attention to the effects of these treatments on survival and quality of life.