Abstract: Introduction: The disinfection and sterilization practices followed in a hospital reflect its commitment towards the prevention of hospital acquired infection. Although, there is a cost associated with various agents used for sterilization and disinfection, these eventually decrease the overall cost of healthcare by reducing the direct & indirect costs associated with hospital-acquired infections. Objectives: To document the annual procurement cost and quantity of chemical disinfectants procured by the Hospital and also to calculate the annual consumption cost of various disinfectants used in the inpatient care areas. Materials & Methods: A retrospective study in the Hospital Stores of a large tertiary care teaching hospital. A list of all the inventory of sterilants and disinfectants and associated transactions during a financial year for various disinfectants procured through the Hospital Stores was obtained. The consumption in indoor patient care areas was compared to the number of admissions during the same Financial Year. The cost of chemical disinfection per admission per day was calculated depending of the average length of stay (ALOS). Results: The overall annual expenditure on chemical disinfectants issued to the indoor areas of the Main Hospital was observed to be Rs. 2,20,54,287.49 @ Rs. 52.18 per patient per day. The highest expenditure was incurred on alcohol based disinfectants and the least was on Formaldehyde. Amongst the various types of inpatient areas, the maximum consumption was observed in the Intensive Care Units (ICUs) (Rs. 106.95), followed by the Private Rooms (Rs.45.79) and then General Wards. (Rs. 39.76). Conclusion & Recommendations: In our study, the highest expenditure was incurred on alcohol-based disinfectants while the least was on Formaldehyde. The maximum expenditure on chemical disinfection was observed in the ICUs, followed by the Private Rooms and lastly the General Wards.