The US Mint publishes annual production cost data. Here's the latest breakdown. "Seigniorage" is the profit (or loss) the government makes — the difference between face value and production cost.
1¢
Penny
Face value: 1¢
Cost to make
3.07¢
−2.07¢ loss
5¢
Nickel
Face value: 5¢
Cost to make
11.18¢
−6.18¢ loss
10¢
Dime
Face value: 10¢
Cost to make
4.41¢
+5.59¢ profit
25¢
Quarter
Face value: 25¢
Cost to make
11.37¢
+13.63¢ profit
💸 The Bottom Line
The US Mint loses approximately $179 million per year producing pennies and nickels. The penny alone accounts for about $85 million in annual losses. Meanwhile, quarters and dimes generate enough profit (seigniorage) that the Mint is still profitable overall — transferring approximately $890 million to the US Treasury in FY2023.
Complete Production Cost Breakdown
Coin
Face Value
Cost to Make
Profit/Loss Per Coin
Coins Minted (2023)
Total Profit/Loss
Penny
$0.01
$0.0307
−$0.0207
4.1 billion
−$85M
Nickel
$0.05
$0.1118
−$0.0618
1.5 billion
−$94M
Dime
$0.10
$0.0441
+$0.0559
2.4 billion
+$134M
Quarter
$0.25
$0.1137
+$0.1363
2.2 billion
+$300M
Half Dollar
$0.50
$0.1204
+$0.3796
5.4 million
+$2M
Dollar Coin
$1.00
$0.1240
+$0.8760
139 million
+$122M
📊 Where the Cost Comes From
Production cost includes: raw metal blanks (40-60% of cost), manufacturing/striking (20-30%), labor (10-15%), transportation to Federal Reserve Banks (5-10%), and general Mint overhead. Metal prices are the biggest variable — when copper and zinc spike, so does the cost per coin.
Coin Minting Cost Calculator
Enter any quantity of coins to see what it costs the US Mint to produce them
Total Cost to Produce These Coins
$0
Face Value
$0
what they're worth
Net Profit/Loss
$0
for the government
Cost per $1 Face
0¢
to make $1 in coins
Breakdown by Coin
🤯 Fun Fact
Why Does a Penny Cost 3¢ to Make?
The penny hasn't been pure copper since 1982. Today's penny is 97.5% zinc with a thin copper plating (2.5%). Despite switching to cheaper zinc, rising metal prices and manufacturing costs have kept the penny above its face value since 2006 — that's nearly 20 consecutive years of losses.
⛏️
Raw Materials (~1.6¢)
A penny uses about 2.5 grams of zinc and a trace of copper. At current zinc prices (~$1.20/lb), the raw metal alone costs about 1.6 cents. When zinc spiked in 2022, material cost alone exceeded 1.8¢ per penny.
🏭
Manufacturing (~0.8¢)
Blanks are punched, annealed (heated), washed, and struck at 750 coins per minute on massive coining presses at the Philadelphia and Denver Mints. Each step adds cost — electricity, machine maintenance, quality control.
👷
Labor & Overhead (~0.4¢)
The Mint employs roughly 1,600 people across its facilities. Wages, benefits, administration, and facility costs are allocated across all coin production. The penny's share is small per coin but adds up across billions.
🚛
Transportation (~0.3¢)
Finished coins ship from the Mint to Federal Reserve Banks, which distribute to commercial banks. Pennies are heavy relative to their value — a $50 box of pennies weighs 34 pounds. Moving billions of them costs real money.
⚠️ The Nickel Is Even Worse (Per Coin)
While the penny gets all the attention, the nickel actually loses more per coin: 6.18¢ loss vs the penny's 2.07¢ loss. A nickel is 75% copper and 25% nickel — both expensive metals. But because fewer nickels are minted (1.5B vs 4.1B pennies), the penny's total annual loss is similar.
Coins vs Paper Money: Production Cost Comparison
Coins are produced by the US Mint while paper currency is handled by the Bureau of Engraving and Printing. Here's how they compare.
Currency
Face Value
Cost to Produce
Lifespan
Cost per Year of Use
Penny
$0.01
3.07¢
25+ years
~0.12¢
Quarter
$0.25
11.37¢
25+ years
~0.45¢
Dollar coin
$1.00
12.40¢
25+ years
~0.50¢
$1 bill
$1.00
7.7¢
6.6 years
~1.17¢
$20 bill
$20.00
11.5¢
7.8 years
~1.47¢
$100 bill
$100.00
17.5¢
22.9 years
~0.76¢
💡 Key Takeaway
Dollar coins cost more to produce (12.4¢) than dollar bills (7.7¢), but coins last 25+ years vs 6.6 years for bills. Over time, dollar coins save money — the GAO estimated switching from $1 bills to coins would save $4.4 billion over 30 years. But Americans strongly prefer bills, and Congress has never mandated the switch.
History of US Coin Production Costs
Coin production costs have changed dramatically as metal prices and compositions shifted over the decades.
Pre-1857
Large cents (pure copper) were sometimes worth more melted down than as money. Congress reduced the penny's size in 1857 to cut costs.
1943
Copper was needed for WWII ammunition. The Mint made zinc-coated steel pennies for one year. They rusted easily and were confused with dimes.
1965
Silver prices spiked, making dimes and quarters worth more than face value. Congress removed silver from circulating coins, switching to copper-nickel clad.
1982
Copper prices made pure copper pennies too expensive. Mid-year, the Mint switched to zinc pennies with copper plating. Both versions circulated simultaneously.
2006
First year the penny cost more to make than it was worth (1.21¢). It has cost more than 1¢ every year since — nearly 20 consecutive years of losses.
2011
Peak costs: penny hit 2.41¢ and nickel hit 11.18¢ as metal prices soared. Congress made it illegal to melt pennies and nickels for their metal value.
2022-2025
Costs remain elevated. The Mint has tested alternative metals (steel, aluminum) but no changes have been authorized by Congress.
How Other Countries Handle Low-Value Coins
The US isn't the only country that's wrestled with the penny problem. Here's what others have done.
🇨🇦
Canada — Eliminated the Penny (2013)
Canada stopped making pennies in 2012 and withdrew them from circulation in 2013. Cash transactions round to the nearest 5¢ (electronic payments use exact amounts). Studies showed no measurable impact on inflation. Saved $11 million CAD per year.
🇦🇺
Australia — Eliminated 1¢ and 2¢ (1992)
Australia eliminated both the 1-cent and 2-cent coins in 1992. Rounding to the nearest 5¢ has worked smoothly for 30+ years. Multiple studies confirmed no negative impact on prices or consumers.
🇬🇧
United Kingdom — Still Makes Pennies
The UK still produces 1p and 2p coins, though usage has plummeted. A 2019 Treasury consultation explored elimination but no action was taken. The Royal Mint's costs are less transparent than the US Mint's.
🇪🇺
Eurozone — Mixed Approach
Several EU countries (Finland, Netherlands, Ireland, Belgium, Italy) have stopped circulating 1-cent and 2-cent euro coins. Cash prices round to 5 cents. Other eurozone countries still produce them.
🗳️ Why the US Still Makes Pennies
Despite bipartisan support for elimination, several forces keep the penny alive: the zinc lobby (Jarden Zinc Products is the Mint's sole blank supplier), concerns about "rounding tax" on low-income consumers (studies show rounding is neutral), nostalgia and tradition (Lincoln's legacy), and simple legislative inertia.
Frequently Asked Questions
How much does it cost to make a penny? ▼
As of the most recent US Mint data, it costs approximately 3.07 cents to produce a single penny. Since a penny is only worth 1 cent, the government loses about 2.07 cents on every penny minted. The main costs are zinc (97.5% of the penny), manufacturing, labor, and transportation to Federal Reserve Banks. The penny has cost more to make than it's worth every year since 2006.
How much does it cost to make a nickel? ▼
A nickel costs approximately 11.18 cents to produce — more than double its 5-cent face value. The nickel is the biggest money-loser per coin, with a loss of 6.18 cents each. The high cost comes from its 75% copper / 25% nickel composition. The total annual loss on nickels is approximately $94 million.
How much does it cost to make a quarter? ▼
A quarter costs approximately 11.37 cents to produce but is worth 25 cents — making it one of the most profitable coins. Each quarter generates about 13.63 cents in seigniorage. With about 2.2 billion quarters minted annually, that's approximately $300 million in profit per year.
Is it illegal to melt coins? ▼
Yes. Since 2006, it's been illegal to melt US pennies and nickels or export them in bulk for melting. The fine is up to $10,000 and/or 5 years in prison. This was passed because the metal content exceeds face value. Dimes and quarters are not covered since their metal value is below face value.
What are pre-1982 pennies worth? ▼
Pre-1982 pennies are 95% copper and 5% zinc. At current copper prices, the melt value is approximately 2.5-3.0 cents — roughly 2.5-3x face value. However, it's illegal to melt them. Some collectors hoard them hoping the law changes. You can sort them by weight: pre-1982 = 3.1g, post-1982 = 2.5g.
Why doesn't the US eliminate the penny? ▼
The zinc industry lobby (sole supplier of penny blanks), consumer rounding concerns (studies show it's neutral), Lincoln nostalgia, and legislative inertia. Multiple bills have been introduced but none have passed. Canada eliminated their penny in 2013 with zero negative impact, saving $11M/year.
Sources: US Mint Annual Reports and Biennial Reports to Congress on coin production costs, Federal Reserve data on currency circulation, Bureau of Engraving and Printing cost data, GAO reports on dollar coin vs dollar bill costs. Coin minting costs based on FY2023 published data. Metal prices updated March 2026.