OBJECTIVES: A pharmacoeconomic analysis of schizophrenia treatment with olanzapine, risperidone and haloperidol in Germany. METHODS: A decision model, which included clinical parameters, that was previously developed by an international expert panel was used. Medical resource utilization and costs in Germany were determined by a German expert panel and integrated into the model. Subsequently, a cost analysis, a cost-effectiveness analysis and a cost-utility analysis were performed. RESULTS: The total costs per patient for 5 years were highest for risperidone (DM 123 004). Total costs for haloperidol were DM 121 868 and total costs for olanzapine amounted to DM 119 572. Cost-effectiveness of risperidone and olanzapine compared to haloperidol was better by the factor 2.3 and 2.5, respectively. The costs per quality-adjusted-life-year were lowest for olanzapine followed by risperidone and haloperidol. CONCLUSION: If total costs are considered, the high medication costs of new antipsychotics are compensated by savings due to better efficacy in treatment of negative symptoms and less relapses.