OBJECTIVES To conduct a study to determine the average cost of therapy for bronchial asthma patients in a tertiary care center.  METHODS A prospective observational study was carried out on a 100 bronchial asthma patients after ethical clearance was obtained from an Independent Ethical Review (IEC) board. The patients selected for the study were in-patients admitted to the Medicine and Pulmonary wards for bronchial asthma related complaints with and without co-morbidities. The study assessed the average cost of therapy which was obtained from patient records. Statistical analysis was performed using SPSS version 20. RESULTS The mean age of the study population (N=100) was 53.30±14.59. Females constituted 61% of the study population. The job profiles of the majority of study population were house wives (53%) and agriculturist (15%). The average cost of therapy among 100 patients was found to range from $1.81 to $598.  The impact on the length of stay on cost of therapy per day was classified into ≤5, 6-10, 11-21 days and cost was found to be $9.21 ± 5.57, $12.12 ±9.65 and $15.56±10.36 respectively. Impact of co-morbidities (35%) and without co-morbidities on cost of therapy per day was found to be $13.03 ± 10.63 and $8.54 ± 6.77 respectively. CONCLUSIONS Asthma creates a substantial financial burden on the society and results in compromise on diagnosis and treatment mainly in a developing country like India. There was a substantial increase in the cost of therapy as the duration of hospital stay increased and also in the case of patients with co-morbidities. Pharmacoeconomic analysis is needed to develop strategies to reduce the cost of therapy and thereby achieve greater medication adherence and improved quality of life in asthma patients.