Estimates of direct and indirect costs of psoriasis are limited. The aim of this study was to estimate: (i) costs in patients with psoriasis compared with controls; and (ii) impact on costs from initiating biologics. The study extracted data from Swedish administrative registers and compared 31,043 patients with 111,645 sex-, age- and residency-matched referents. Mean direct and indirect costs were estimated as US dollars (USD) 1,365 (62%) and USD 3,319 (50%) higher in patients compared with referents, respectively. The study included 352 patients treated with biologics who had at least 1-year follow-up before and after initiation of biologics. Among the 193 patients persistent with biologics for one year, 1-year costs of biologics were estimated at USD 23,293 (95% confidence interval (95% CI) 22,372-24,199). This cost was partially offset, with savings in direct cost estimated to range from USD -1135 (95% CI -2,050 to -328) to USD -4,422 (95% CI -6,552 to -2,771), depending on assumptions. The corresponding estimates for indirect costs savings were from USD -774 (95% CI -2,019-535) to USD -1,875 (95% CI -3,650 to -188). The study suggests that psoriasis is associated with substantial costs, which may be modifiable with treatment.