OBJECTIVES The introduction of innovative medical devices with high investment and operational costs is often delayed in countries with severe resource constraints. Cost-effectiveness analysis can help decision-makers to understand the economic value of such technologies. The purpose of our study was to compare the cost-effectiveness of two modern radiation therapy techniques, the stereotactic body radiation therapy (SBRT) and intensity-modulated radiation therapy (IMRT) compared to the 3-dimensional conventional radiation therapy (3DCRT) for treatment of low- to intermediate-risk prostate cancer in Hungary. METHODS A Markov model was constructed with the following disease states of a 65-year-old patient with organ confined prostate cancer: no evidence of disease after radiation therapy, hormone therapy, chemotherapy, death. Transition probabilities were calculated based on the international literature for SBRT, IMRT and 3DCRT. Utility values for each health state were obtained from publically available secondary sources. Costs in the model were calculated based on the Hungarian Health Insurance Fund rates, and were converted to EUR by applying actual exchange rates (1 EUR = 305 HUF). Analysis was conducted from payer perspective for 65-year-old patients over 10 years time horizon. RESULTS Based on preliminary calculations the expected mean cost of patients undergoing SBRT, IMRT and 3DCRT were 2,201 EUR, 5,704 EUR and 11.549 EUR respectively. Expected QALYs were 6.00 for SBRT, 5.8 for IMRT and 3.9 for 3DCRT. Compared to 3DCRT, both IMRT and SBRT were less costly and resulted in more health gain. CONCLUSIONS The modern SBRT and IMRT are not only cost-effective compared to the conventional 3DCRT but also provide a great cost saving potential for the Hungarian health care system and may improve access to radiation and quality of life for patients. Appropriate financial incentives in the DRG system should support the uptake of cost-effective hospital technologies in Hungary.