Penny Costs 3.69 Cents to Make in 2024, Nickel Costs 13.78 Cents; US Mint Realizes $99.5M in Seigniorage

In its 2024 Annual Report, the United States Mint disclosed that manufacturing costs increased across all coin denominations. For the nineteenth consecutive year, the unit cost of producing pennies and nickels exceeded their face values.

The U.S. Mint struck nearly 5.9 billion coins for circulation during the fiscal year, a decline from 10.5 billion in the previous year.

"FY 2024 circulating coin shipments to the Federal Reserve Bank decreased by 4.6 billion units (44.1 percent) to a total 5.9 billion coins compared to last year. The year saw decreases in shipments of all denominations except the half-dollar, which resulted in decreased revenue and seigniorage compared to last year," the U.S. Mint’s annual report said.

The Mint generates revenue from selling coins at face value when shipped to Federal Reserve Banks for circulation.

Cost to Make Pennies and Nickels

In FY 2024, the U.S. Mint’s cost to produce, manage, and distribute the 1-cent coin rose to 3.69 cents from 3.07 cents, a 20.2% increase. The unit cost for the 5-cent coin climbed to 13.78 cents from 11.54 cents, up 19.41%.

On Feb. 9, President Trump ordered an end to penny production, calling it a move to reduce "wasteful" government spending.

"For far too long the United States has minted pennies which literally cost us more than 2 cents," Trump said in a Truth Social post. "This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nations budget, even if it’s a penny at a time," Trump wrote.

On Jan. 21, a post on X by DOGE (Department of Government Efficiency) made a similar argument.

"The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023," DOGE stated. "The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation produced. Penny (or 3 cents!) for your thoughts."

Despite lower production totals driving up per-unit costs, the Mint saw some relief in the prices of two of the three metals used in coin production.

"FY 2024 average spot prices for nickel decreased 27.1 percent to $17,107.57 per tonne, average zinc prices decreased 4.7 percent to $2,640.76 per tonne and average copper prices increased 5.4 percent to $8,889.08 per tonne," the U.S. Mint’s report noted.

Lincoln cents are composed of 2.5% copper, with the remainder in zinc. Five-cent coins contain 25% nickel, with the balance in copper. Dimes, quarters, and half dollars each consist of 8.33% nickel, with the rest in copper.

Cost to Make Dimes, Quarters and Half Dollars

Unlike cents and nickels, the U.S. Mint remained profitable in producing dimes, quarters, and half dollars, as their manufacturing and distribution costs remained below their face values.

In FY 2024, unit costs increased:

• Dime: 5.76 cents, up from 5.30 cents (8.7%)
• Quarter: 14.68 cents, up from 11.63 cents (26.2%)
• Half dollar: 33.97 cents, up from 25.98 cents (23.5%)

The following tables summarize the Mint’s costs for the cent through half dollar in fiscal years 2021, 2022, 2023, and 2024.

Seigniorage – the difference between a coin’s face value and its production and distribution costs – generated $35.6 million from dimes and $165.6 million from quarters in FY 2024. The U.S. Mint transfers seigniorage to the Treasury General Fund to help finance the national debt.

Relatively few half dollars were produced for circulation compared to other denominations, yielding $8.4 million in seigniorage.

In contrast, cents and nickels have operated at a loss since 2006.

Unit Costs and Seigniorage for Cent and Nickel from 2005 to 2024

The U.S. Mint produces and issues circulating coins to Federal Reserve Banks in quantities that support their distribution to commercial banks and other financial institutions. In FY 2024, production declined for all denominations except the half dollar. During the fiscal year, the Mint shipped:

• 3.172 billion cents, down 23.3% from the previous year
• 202 million nickels, down 85.7%
• 840 million dimes, down 68.5%
• 1.605 billion quarters, down 29.4%
• 52 million half dollars, up 188.9%

Combined, these shipments totaled 5.871 billion coins, a decline of 4.639 billion (44.1%) from the 10.51 billion coins delivered in FY 2023.

The Federal Reserve pays face value for circulating coins, and in FY 2024, the Mint’s revenue from these sales totaled $553.3 million, down 42.1% from $956.1 million in FY 2023.

After deducting production costs, which totaled $453.8 million, the U.S. Mint’s circulating profit, or seigniorage, amounted to $99.5 million – $149.5 million decline (60%) from $249 million in FY 2023.

The federal government’s fiscal year runs from October 1 to September 30.