OBJECTIVES: To evaluate and analyse the pharmacoeconomic evaluation of cancer treatments in a tertiary care facility in South India.  METHODS: In this prospective study, a survey of cancer treatments is carried out in a tertiary care hospital from the case reports of cancer patients who are under treatment for cancer. The average cost of treatment, cost of medicines, and indirect non-medical expenses are computed. The results are expressed in terms of percentage of cost of treatment, cost of medicines and non-direct medical expenses.  RESULTS: The cost are expressed in INR. The overall average cost of treatment is 5 Lakhs; cost of medicines 30,000 INR per visit per dose and non-medical costs 3,000 INR per visit per dose. The treatment involves 5 - 10 cycles of chemotherapy. The cost also involved the cost of surgery and radiation therapy for some patients which enhanced the average cost of treatment. Most of the patients are paying for the treatment out of pocket.  CONCLUSIONS: The treatment of cancer is not only expensive, but beyond the economic means of an individual patient as the government subsidies and insurance coverage is not adequate to meet the high cost of cancer treatment.