How Much Does It Cost to Make a Penny? U.S. Mint Ends 232-Year Production

The U.S. Mint officially pressed its final penny on Wednesday in Philadelphia, ending a 232-year tradition. The historic decision comes as the cost to make a single penny has skyrocketed to nearly four times its face value — sparking a long-debated financial and economic shift across America.

According to the U.S. Mint’s 2024 Annual Report, it costs approximately 3.7 cents to produce one penny. That’s about 270% more than the coin’s actual worth, a loss that has been compounding for decades. The announcement follows a February directive from President Donald Trump urging the Treasury to halt new penny production.

The Real Cost of Making a Penny

For decades, the penny has cost more to make than it’s worth. The 2024 figures show a sharp rise of about 20% from 2023 — part of a long-term trend. Since 2000, production costs have more than quadrupled. The last time a penny cost less than its face value to mint was in 2005.

The problem extends beyond the penny. The nickel, featuring President Thomas Jefferson, now costs 13.8 cents to produce — nearly triple its value. By comparison, dimes and quarters remain efficient, costing slightly over half their face value to mint.

In 2024, the Mint lost about $85.3 million on penny production and another $17.7 million on nickels. Despite the staggering losses, the new cost figures actually mark an improvement over previous years, when nickel production alone cost the Mint over $90 million in losses.

Officials estimate that ending penny production will save the U.S. government around $56 million each year. Treasury analysts say that while the savings won’t solve major budget issues, the symbolic and operational efficiency gains are significant.

What Happens to Pennies Now?

Although production has stopped, the penny remains legal tender. More than 300 billion pennies are currently in circulation, meaning Americans will continue to see them in everyday use for years. However, retailers are already anticipating practical challenges as penny supplies gradually decline.

Without new coins entering the system, stores may have to start rounding prices to the nearest nickel. Economists note that similar transitions have been smooth in countries like Canada, which discontinued its penny in 2013.

The Mint confirmed that a limited number of collector-edition pennies will still be produced. These will serve numismatic enthusiasts and historical preservation efforts — a nod to the coin’s iconic role in American culture.

The End of an Era and a Symbol

The penny has long been a symbol of thrift and everyday life in the U.S. From Abraham Lincoln’s image to the copper glint in a child’s piggy bank, its disappearance marks both an economic decision and an emotional one for many Americans.

Financial experts argue that removing the penny reflects a modern, digital economy less reliant on cash transactions. But for others, the end of the one-cent coin signals the closing of a nostalgic chapter in American history.

The final penny, pressed at the Philadelphia Mint, represents not just the end of production — but the beginning of a new era in U.S. currency policy, where cost efficiency outweighs tradition.

FYI (keeping you in the loop)-

Q1: How much does it cost to make a penny?

According to the 2024 U.S. Mint Annual Report, it costs about 3.7 cents to make one penny.

Q2: Why did the U.S. stop making pennies?

The Treasury halted production because it cost more to make the coin than it was worth, resulting in yearly losses exceeding $85 million.

Q3: When was the last penny made?

The final penny was pressed at the Philadelphia Mint on November 12, 2025.

Q4: Will pennies still be accepted?

Yes. All existing pennies remain legal tender and can still be used for transactions nationwide.

Q5: What will replace the penny?

No new coin will replace it. Retailers may round prices to the nearest nickel as penny circulation declines.