Introduction. The purpose of this study was to assess the health service cost of peritoneal dialysis (PD) delivered at home in Iran in comparison with hemodialysis.Methods. Cost and patient data were collected in 2006 and from April 1 to May 31, 2007, respectively. The reference year for the value of USD for different mentioned costs was 2006(1 USD=9188 Iranian Rial, local currency, 9.2006). The itemized description of related expenses are as follows: 1-Building costs:10 square meters for each 10 dialysis patients in the unit (each 40 square meters of common space of hospital monthly rent 3million Rials) 2-Drugs:Twelve vials of erythropoetin 2000 U monthly & Two vials of Venofer each month 3-Physician & Nurse:Once amonth visit by nephrologists, monthly salary of nurse is distributed according to 20 patients/ nurse ratio 4-Paraclinic test: Routines monthly, Viral check (HBV, HCV, HIV) biannually, PET, PTH, albumin, iron store tests every 3 months 5-Imaging:Chest X-ray, KUB, kidney sonography once a year. Results. The health care sector costs associated with catheterization and first educational period were 499.2 US$ and 79.3 respectively. The cost of maintenance of CAPD per month was 1040.3 USD per month. Most of the total maintenance expenditure was made up of medical supplies (78.6%), with solutions as the major cost driver. Staff salaries represented 2.8% of the cost and capital costs were negligible. Monthly costs in the category of case level (USD): 1-Drugs (erythropoetin, calcitriol, parenteral iron, etc.): 162.6 (15.6%) 2-Lab investigation: 9(0.9%) 3-Imaging: 3.1(0.3%) 4-related suppl ies (cap, clamps solut ion, drugs) : 818.5(78.6%) 5-Equipments (medical and non-medical): 9.5(0.9%). Monthly costs in the category of unit level (USD): 1-Physician (PD maintenance visits): 7.5(0.7%) 2-Nurse (PD maintenance visits): 21.8(2.1%) 3-Building replacement costs: 8.2(0.8%) Monthly costs in the category of hospital level (USD): 1-Central administration: hospital, nursing administration, accounting, information services, capital equipment and depreciation, construction and redevelopment: 0.09(0.1%).Conclusion. These findings are important as we know that the cost of maintenance of HD per month was 1025.3 USD per month which was estimated with the assumption of 3 shifts and full chairs which is not happening most of the time. This fact emphasizes on the fact that a major attempt should be made to increase peritoneal dialysis coverage as in many centers we cannot keep all chairs full for even 2 shifts, especially in some vast areas. In addition to the costs imposed on the health system sector, transportation to dialysis units imposes significant costs on society in terms of production losses due to the commute of patients and accompanying person. It is highly recommended to place initial focus on this strategy and reduction of cost of solutions to save resources.