My brother is having a baby (!) so I was talking diapers with my sister-in-law. Like me, Hannah likes to keep things natural and cheap. But if natural isn't cheap then both of us tend to say, "Why bother?" I was convinced that cloth diapers are indeed cheaper than their pumped-full-of-chemicals, bad-for-the-environment alternatives. After our conversation I looked back through our records and let the numbers speak for themselves.
Joshua was born in 2006 and I began buying the Wal-mart brand of diapers. They worked pretty well for me, only leaking when the size was wrong or if the blow-out was particularly huge. Also, I didn't change his diaper very often because I was too cheap to throw away a half used diaper. If I was to go back I would probably be spending about 30% more because I'm now used to keeping the children's bottoms fresh.
2006 - For Joshua’s first year we spent $300 on disposable diapers. That’s really not that bad for the convenience of just throwing them away. And it’s a lot less than pro-cloth diaper people will tell you that disposable diapers cost.
2007 - The next year Joshua was a toddler so he wasn’t changed nearly as often, but we did have Lucy in diapers too for the last three months of the year. We spent about $250.
2008 - The year after that Joshua and Lucy were both in diapers for the first five months and then Joshua potty trained. Lucy continued to use disposables until August. We spent $220.
In August that year I made my first cloth diapers purchase which totaled $80.50. Esther is using those diapers now. Cotton prefolds and waterproof wraps are the most economical option and I find them easy to wash and dry.
Including that purchase, I have spent a total of $380 on cloth diapers (wraps and wipes too) and most of it is still going strong. I will be using all the diapers themselves for at least one more child and possibly another after that. The waterproof wraps that I buy are about $12 each and I use 4 for each of the three sizes.
I did buy some used wraps that I didn’t like and I ended up getting rid of them. I used other wraps when Lucy was too big for them so they stretched and wore out early and I had to replace them. I also spent a bit more on one wrap (wool to breath better since Lucy got such terrible diaper rashes). The wipes that I’ve gotten aren’t worth the extra money. If you want to do cloth wipes (disposable wipes are easy and cheap) just buy cheap flannel to cut into squares. The number above also includes the aloe that I bought to make wipes solution.
I have looked at our water bill before and after diapers and it did not go up significantly.
Realistically, if you wanted to do cloth diapers, here is what it could cost:
Infant diapers: $1.50 each x 36 = $48
Regular diapers: $2.00 each x 24 = $48
Wraps: $12.00 each x 12 = $144 (this is for three sizes so you don’t need to spend this all at once)
Total (good for about 3 kids): $240
Anyway, maybe this is more information than ant of you are interested in, but these are real numbers from our experience.