OBJECTIVES: Children with a family history of atopic disease receiving cow’s milk formula (CMF) are at high risk of atopic dermatitis (AD). Modeling techniques were used to estimate the economic impact of AD among urban high-risk children in Malaysia, Indonesia, and Singapore. METHODS: A cohort Markov model was developed to simulate the cumulative incidence and costs of AD in 3 cohorts (one per country) of urban, high-risk infants partially of completely fed with CMF in early infancy (months 0-4). AD incidence was from the GINI study, the largest/longest prospective experimental study of infant formula and AD in this population. AD treatment patterns and resource use assumptions were dervided from expert opinion (n=8). Costing of resource use was based on the respective countries’ prices. Key modeled outcomes included the overall and annual direct/indirect costs of AD (converted to 2013 US$) from diagnosis to age 6. Multivariate probabilistic sensitivity analysis was uses to generate 95% confidence intervals (CI) around study outcomes.  RESULTS: The 6-year cumulative risk of AD was 38% (95% CI: 22%, 57%). The mean overall estimated AD costs/child developing AD was $2,492 (95% CI: $1,887, $3,509) in Malaysia, $3,217 (95% CI: $2,339, $4,717) in Indonesia, and $4,753 (95% CI: $3,438, $6,961) in Singapore. Expressed on an annual basis, the cost of AD per child developing AD was $576 (95% CI: $501, $650) in Malaysia, $743 (95% CI: $605, $876) in Indonesia, and $1,097 (95% CI: $900, $1,303) in Singapore. Most of these costs were direct costs for physician visits and pharmacologic treatments.  CONCLUSIONS: By age 6, the total cumulative AD-related costs among high-risk urban infants who are fed with CMF in early infancy are estimated to range from $2,492 to $4,473. Annual AD costs range from $576 to $1,097. Cost-effective AD prevention strategies should be considered to reduce this burden.