Objective: Chronic diseases, comparing to the othertype of diseases, consume most of the resources in the health systems.Alzheimer’s Disease (AD) is a chronic cerebral disorder and is themost common type of dementia. The purpose of this research is to analyzecost effectiveness according to stages of AD from the perspectiveof Social Security Institution (SSI) and the society and todetermine the burden of the disease on the country's budget. Materialand Methods: Using the Markov Model, three parameters were calculatedin the study: lifelong cost, average survival time (ST) (year),and quality adjusted life year (QALY). Results: According to thecost-effectiveness analysis, treatment in early-stage causes additional₺ 41.237,55 cost and provides additional 1.10 QALY comparing tothe treatment in severe-stage. Likewise, treatment in moderate-stagecauses an additional ₺ (-) 40.439,83 cost and provides additional 1.07QALY comparing to the treatment in severe-stage. According to theresults of the budget impact analysis made from the SSI perspectivefor AD, 0.66% of the total health expenditures were spent on the treatmentof this disease. The social cost of AD was estimated as ₺14.462.457,106. Conclusion: The study was concluded that early andmoderate-stage treatment of AD is cost-effective compared to severestagetreatment. As a result of the study, it was revealed that the socialand economic costs increased and the quality of life of thepatients decreased in the progress stages of AD. The results of thisstudy are thought to be important in terms of the assessment of theeconomic impact of AD in the Turkey.