Although cloth diapers do cost around $400.00 or so to get started and you have to spend money on detergent, water electricity etc they are indeed cheaper.
Over the time your baby is wearing diapers you will save around $2,000.00 and you can reuse the same cloth diapers with any other babies you might have.
So yes they are worth the extra work and they're better for your baby too since they don't have all the chemicals that disposable baby diapers have in them.