Incremental cost
Incremental cost is the additional cost of a treatment compared to an alternative, i.e., the cost difference between them (Table 1). Incremental costs are used in cost-effectiveness analyses of alternative treatments to estimate the incremental cost-effectiveness ratio (ICER).
Table 1. Example of a pairwise incremental cost calculation
| Treatment | Total cost | Incremental cost of A and B |
|---|---|---|
| A | £24,000 | £6,000 |
| B | £18,000 |