Objective: To estimate the direct and indirect cost of depressive disorders in indoor patients.Methodology: This hospital based descriptive study was carried out on thirty patients admittedconsecutively in department of psychiatry Jinnah Postgraduate Medical Center Karachi from January toJuly 2000. International Classification of Disease-10 diagnostic criteria for depressive disorders were usedto identify the patients. Cost proforma was devised to calculate direct and indirect cost. The cost ofhospital stay per day was calculated by using opportunity costs model.Results: There were 9 (30%) male and 21 (70%) female patients. Majority of the patients were in theirtwenties (n=11, 36.67%) and thirties (n=9, 30%). There were 24 (80.02%) married and 6 (19.98%)unmarried patients. A total of 20 (66.66%) were jobless and 10 (33.33%) were having a job. Most of thepatients were suffering from moderate depressive disorder and recurrent depressive disorder (n=11, 36.67%and n=10, 33.33%). The overall cost of all the patients was Rs. 472,542 with Rs.73,026 (15%) in directand Rs. 399,516 (85%) in indirect costs with a ratio of 1:5.5.Conclusion: The diagnosis of moderate depressive disorder was the commonest in the sample. The indirectcost of depressive disorder in indoor patients was 5.5 times more than the direct cost.