Purpose: Anxiety disorders impose a significant burden of disease in the United States. In particular, between 3-6% of the population is estimated to meet DSM-IV criteria for panic disorder. Incidence of panic disorder is highest in those between the ages of 18-44 years old, impacting education, career and family building activities. We evaluate the potential benefits of reducing the oftentimes delayed onset of evidence-based treatment for panic disorder. Methods: We developed a first-order Monte Carlo model that simulates the incidence and natural course of panic disorder in men and women in the US. Individuals enter the model at age 14 and are followed throughout their lifetime according to transition probabilities based on the literature. Health states were stratified by disease severity (well, mild, moderate or severe), past disease (remitted or partially remitted) and treatment experience (current acute or maintenance treatment or history of previous treatment). Model outcomes included percent decrease in time spent with panic symptoms and gains in quality adjusted life expectancy (QALE). Intervention strategies included treatment with (1) cognitive behavioral therapy (CBT), (2) a tricyclic antidepressant (TCA), (3) a selective serotonin reuptake inhibitor (SSRI), (4) a benzodiazepine, (5) combination CBT plus TCA, (6) combination CBT plus SSRI, and (7) combination CBT plus benzodiazepine. Results: Individuals with panic disorder have a mean duration of 11.2 years with symptoms. Compared to no treatment, interventions that incorporated CBT provided the greatest benefits followed by SSRI and benzodiazepine while use of TCA alone provided the least benefits; benefits ranged from a decrease in time spent with symptoms of 1.8-3.4 years. Increasing the probability of treatment entry by 20% reduced the time spent with panic by 18%-35% (a 10-11% increase in QALYs gained). Increasing the probability of treatment entry by 50% reduced the time spent with panic by up to 40% (a 26% increase in QALYs gained). Conclusions: Increasing the probability of evidence-based treatment for panic disorder has the potential to substantially increase QALY gains. Techniques to improve diagnosis and reduce barriers to patient entry into treatment should be explored as important ways of reducing the burden of disease associated with panic disorder.