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We undertook the economic evaluation of the double-blind randomized ANRS-IPERGAY trial, which showed the efficacy of on-demand preexposure prophylaxis (PrEP) with tenofovir disoproxil fumarate (TDF)-emtricitabine (FTC) in preventing HIV infection among high-risk MSM.The economic evaluation was prospective. Counseling, drugs (TDF-FTC at €500.88 for 30 tablets), tests, visits, and hospital admissions were valued based on in-trial use. The cost of on-demand PrEP/HIV infection averted was compared with the yearly and lifetime costs of HIV infection in France in a cost and benefits analysis.The yearly number of participants needed to treat to prevent one HIV infection was 17.6 (95% confidence interval = 10.7–49.9). The annual cost of counseling was €690/participant. The total 1-year costs of PrEP were €4271/participant, of which €3129 (73%) were drug costs corresponding to 15 tablets of TDF-FTC/month. The yearly cost of on-demand PrEP to avoid one infection was €75 258. Using TDF-FTC generic (€179.9/30 tablets) reduced the 1-year costs of on-demand PrEP to €2271/participant and €39 970/infection averted, respectively. Using TDF-FTC at international market discounted prices (€60/30 tablets) reduced the costs to €1517/participant and the cost to €26 787/infection averted, comparable with the yearly treatment cost of HIV infection in France. On-demand PrEP was found to be cost saving in France if the duration of exposure was less than 7.5 years at current drug price and 13 years at generic price.On-demand PrEP in high-risk MSM with TDF-FTC can be considered cost saving. Other benefits include the treatments of other diseases and reductions in secondary infections.