Background Robot-assisted total knee arthroplasty (rTKA) may improve clinical outcomes for patients who have end-stage osteoarthritis of the knee. However, the costs of rTKA are high, and there is a paucity of data evaluating the cost-effectiveness of rTKA. We aimed to analyze the cost per quality-adjusted life-year (QALY) of rTKA relative to manual TKA. Methods A Markov decision analysis was performed using known parameters for costs, outcomes, implant survivorships, and mortalities. The cost-effectiveness of rTKA relative to manual TKA was assessed for end-stage knee osteoarthritis patients who had a mean age of 65 years (range, 27 to 94 years). The rTKA costs were calculated for a pay-per-use contract robot. Results Using the Markov Model with an annual case volume of 500 patients and a mean age of 65 years, the overall health gain per patient was 13.34 QALYs after rTKA and 13.31 QALYs after manual TKA. This resulted in an overall gain in QALYs of 0.03 for each patient undergoing an rTKA compared with manual TKA and an incremental cost of $128,526 Singapore Dollars per QALY. Conclusion Robotic TKA is not a cost-effective alternative to conventional TKA using a pay-per-use contract robot.