How Much Does it Cost to Produce Coins?

By GovMint :

The cost of producing coins varies significantly depending on the denomination and the materials used. For example, in the United States, it costs more than the face value to circulate certain coins like the penny and nickel. According to a 2023-dated report from the United States Mint, producing a single penny costs about 3.07 cents, while a nickel costs around 11.54 cents.

However, according to the latest United States Mint Annual Report for 2024, unit costs increased for all circulating denominations compared to 2023. Here are those updated figures:

• The penny's unit cost increased by 20.2%, now costing 3.69 cents to produce.
• The nickel's unit cost increased by 19.4%, now costing 13.78 cents to produce.
• The dime's unit cost increased by 8.7%.
• The quarter's unit cost increased by 26.2%.

Notably, the unit costs for pennies and nickels have remained higher than their face value for the 19th fiscal year in a row. Meanwhile, larger denominations, such as dimes and quarters, tend to be more cost-effective to produce relative to their face value. The United States Mint and other national mints continuously evaluate these costs to balance production efficiency with economic viability. However, not all mints release their production costs.

Sources Used:

https://www.numismaticnews.net/coin-market/cost-to-produce-money-on-the-rise 

https://www.coinnews.net/2024/02/09/penny-costs-3-07-cents-to-make-in-2023-nickel-costs-11-54-cents-us-mint-realizes-249m-in-seigniorage/

https://www.usmint.gov/content/dam/usmint/reports/2024-annual-report.pdf