The 'Bad Romance' singer – who describes her stage show as "ostentatious and over-the-top" – is making a heavy loss every night she performs on the North American leg of her 'Monster Ball Tour, even though every concert is sold out, which has so far overspent by £2 million.
The massive costs have been run up by her elaborate stage design, costumes and props, including the giant bath she used while making a promotional appearance on UK TV talent show 'The X Factor'.
A source said: "The concerts are losing money hand over fist because they've spent a fortune on pricey costumes, technical equipment and elaborate set designs. She spent £500,000 on one stage alone.
"But Lady Gaga gets what Lady Gaga wants. Her wardrobe is huge and she wants to shock – and that costs serious money."
According to her spokesman, the 23-year-old star just "doesn't care" about the financial side of things.
He told The Sun newspaper: "I can't comment on figures but it wouldn't be a surprise. Gaga puts everything into her live shows. I wouldn't want to be her accountant."
While she has already overspent massively, Lady Gaga's bills are expected to soar significantly again as she recently revealed she is planning a completely different set for the European part of her tour.
She said: "For the next version of the 'Monster Ball', which is going to be in February when I begin in the UK with my arena tour, I'm throwing out the stage. My team thinks I'm completely psychotic. But I don't f***ing care what they think.
"Just to give you an idea, the stage is about four times the size of the one we're on now and conceptually, it's completely different. One thing that has been lost over the past 10-15 years, in pop music, is the idea of showbiz. And this is definitely going to bring that back."