OBJECTIVES: To investigate the health care resource utilization and cost-of-illness in patients with schizophrenia in Sweden. METHODS: Data on socio-demographics and disease-related health care resource use for 2412 patients were collected using registry data for the period 2006-2008. Data on health care visits and inpatient days were obtained from the Northern Stockholm psychiatric clinic, while data on pharmaceuticals, sick leave and early retirement were obtained from the national pharmaceutical registry and the Swedish social insurance agency, respectively. Costs for community care were not available on individual level in the databases, and were therefore obtained from previous studies. The study was conducted from a societal perspective, with indirect costs valued according to the human capital method. RESULTS: The average annual cost per patient with schizophrenia in the period 2006-2008 was estimated at €48,300o (US$68,800) in 2009 prices. Total costs increased by 8% from 2006 to 2008, mainly because of increased indirect costs. Outpatient care represented 5%, inpatient care 9%, pharmaceuticals 3%, community care 24% and productivity losses 59% of total costs. Costs (excluding community care cost, which was not available on the individual level) were significantly and positively correlated with lower functioning as assessed with GAF (General Assessment of Functioning). Costs in the lowest GAF class (GAF < 50) were almost three times as large as in the highest GAF class (GAF >= 70). Men had significantly higher indirect costs than women, but differences in other cost items were not significant. The mean age was 51 years (SD 14 years) and 54% (SD 0.50) were men. CONCLUSIONS: As the societal costs for patients with schizophrenia are high and strongly related to global functioning, attempts to improve functioning by means of effective treatment and rehabilitation might not only decrease suffering for patient's and relatives, but also reduce societal cost of illness.