The purpose of this study was to estimate inbreeding depression for udder health using records on mastitis incidence and somatic cell count (SCC). Data were selected based on a pedigree completeness index so that inbreeding coefficients were reliable. Average inbreeding was 3.3%. The presence or absence of mastitis was considered in first (CM1), second (CM2), and third (CM3) lactations, and was recorded as a binary trait. Somatic cell count was also included and analyzed on the log scale. A minimum of 140,000 cows with records were included per trait. Linear sire models were used and (co)variance components were estimated. Linear and curvilinear effects of the coefficient of inbreeding were included. Inbreeding significantly affected all traits investigated. Three traits, CM1, CM3, and SCC, showed a nonlinear relationship between phenotype and inbreeding coefficient. A cow with 5% inbreeding compared with a cow with 2% inbreeding had a higher SCC and a higher incidence of mastitis. The SCC increased by 1,500 cells/mL in first lactation and the incidence of mastitis increased by 1.08, 0.55, and 0.98% in first, second, and third lactation, respectively. The corresponding reduction in net return from these traits over 3 lactations amounted to 11.00 US dollars under Danish production circumstances. These results are a step on the way to estimating the total cost of inbreeding depression to determine an acceptable rate of inbreeding.