Incidence of penile cancer in Europe is slightly increasing. Survival rates in penile cancer are good, however, there is little research into treatment costs. OBJECTIVES: To estimate the cost of treating penile cancer in English hospitals, using data from the HES database. This investigation is part of a wider project aimed at quantifying the total economic burden of penile cancer in the UK. METHODS: Inpatient admissions for penile cancer between the years 2006/07 to 2010/11 were retrospectively analysed. Data was obtained from HES, a database covering English hospital activity, with inpatient episodes aggregated into spells of care associated with a specific Healthcare Resource Group (HRG). The HRGs were linked to costs from the UK National Tariff in order to calculate the average annual and per patient payments for inpatient treatment of penile cancer, as per the NHS Payment by Results framework. Where necessary, costs were supplemented by expert opinion and other published cost estimates. A limited amount of HES data on outpatient consultations was also collected and analysed. RESULTS: The mean annual amount paid to English hospitals for inpatient treatment of invasive penile cancer in England was estimated to be £2,391,700, with a further £189,106 paid for carcinoma in situ of the penis. Per inpatient, mean costs were approximately £3,743 and £1,323 for invasive penile cancer and carcinoma in situ, respectively. Outpatient costs were considerably lower, due to the majority of care being delivered in an inpatient setting and issues with HES outpatient data collection. Further research into outpatient costs is currently ongoing. CONCLUSIONS: The burden of penile cancer in the UK has cost implications, the full extent of which cannot yet be ascertained due to underestimation of outpatient costs. Any preventive intervention aimed at decreasing this burden should be carefully considered.