Economic analysis is becoming an important tool for the evaluation of new technologies. In this era of rapidly rising health care costs, we are required to demonstrate that our procedures are effective and cost-efficient. This article provides a glossary of terms for the evaluation and performance of an economic analysis and outlines the steps for performing an economic evaluation of an endoscopic procedure. The reader is provided with the skills to critically evaluate economic analyses of endoscopic technologies, and to determine their relevance to their practice.