In recent years, alcohol-related health and social problems have become a serious concern in Japan because of the marked increase in per capita alcohol consumption. To facilitate forming a well-balanced policy on alcohol, the economic burden of alcohol abuse on Japanese society was estimated and has been presented in this study. In 1987, the alcohol attributable costs of medical care were estimated at 1,095.7 yen billion, representing 6.9% of the total national medical expenditure. The present amount of lifetime economic value based on age and sex for the Japanese population was calculated using the human capital method to estimate the alcohol attributable mortality costs. In 1987 this cost was estimated at 923 yen billion. By applying a 21% reduction rate, reduced productivity related to alcohol abuse was estimated at 4,257.3 yen billion. Summing up the costs of each component of the overall cost to society, the total cost of alcohol abuse was estimated at 6,637.5 yen billion, representing 1.9% of the gross national product in 1987, which was three times that of the national revenue from taxes on alcohol beverages. Along with the increase in city living, the economic burden of alcohol abuse on our society is expected to rise considerably. Public health intervention urgently needs to be administered in order to reduce the number of alcohol-related health and social problems.