This article briefly outlines the principles of economic evaluation in dentistry. It discusses the different types of analyses, such as cost-effectiveness analysis, cost-benefit analysis and cost-utility analysis. Furthermore, it makes clear when these analyses are most appropriate for use. Having a basic understanding of the most common analyses can be helpful to make choices between different interventions. Increasing demand for dental interventions and limited budgets necessitate the allocation of scarce resources efficiently. By identifying, measuring, valuing and comparing costs and outcome of interventions, economic evaluation can also help patients and carers in choosing between interventions. The article gives some examples in restorative dentistry to explain the relevance of economic evaluation.