Cents on the Dollar

By now, it’s common knowledge how much it costs the U.S. government to produce a 1-cent coin, as its high production costs led to its demise.  But how much does it cost to make a $1 bill? According to figures released by the Federal Reserve Board (FRB) late last year, a $1 note (and a $2) cost 4.1 cents to print. Interestingly, a $5 note costs 7.1 cents, while it costs only 6.8 cents to print a $10 note. The sum then rises to 7.3 cents for a $20 note and 11.3 cents for a $100 note. (Since there were no plans to print $50 bills during 2025, no figure was presented for that denomination.)

The FRB projects that a $1 note will circulate for 7.2 years, a $5 note for 5.8 years, and a $10 note for 5.7 years. A $20 bill is expected to survive 11.1 years, and a $50 bill for 14.9 years. According to the report, a $100 note will still be circulating after a lengthy span of 24 years. (Across the pond, the supposedly more durable British polymer £5 and £10 notes are projected to last only 5 years.)

The FRB reported that the 2025 currency operating budget was $1.04 billion. These funds are primarily used to reimburse the Treasury Department’s Bureau of Engraving and Printing (BEP) for its expenses related to the production of paper currency. To view the full report, visit the Federal Reserve’s website.