It costs about 2.8 cents to print a $1 bill in the United States, though the true cost including overhead is around 7.5 cents.
How Much Does It Cost to Make a $1 Bill?
Every time you hand someone a crisp dollar bill, you're passing along a piece of paper that cost the U.S. government about 2.8 cents to print. That's the variable cost—the paper, ink, labor, and direct overhead that goes into each note rolling off the presses at the Bureau of Engraving and Printing.
But that's not the whole story. Factor in fixed costs like facility maintenance, research and development, administrative overhead, and all the sophisticated anti-counterfeiting technology, and the true cost climbs to around 7.5 cents per bill.
The Hidden Markup on Money
Think about that markup: it costs up to 7.5 cents to create something worth 100 cents. That's a profit margin of over 1,200%. Not a bad business model—especially when you're the only one legally allowed to do it.
This gap between production cost and face value is called seigniorage, and it's a significant revenue source for the government. In 2023, the Bureau of Engraving and Printing delivered 5.7 billion notes to Federal Reserve banks, meaning the government pocketed tens of billions in pure seigniorage profit.
Why Dollar Bills Are Cheap to Make
The $1 bill is the bargain basement of U.S. currency production. Higher denominations cost the same to print but deliver even better seigniorage. Here's why ones are so inexpensive:
- No special features: Unlike higher bills, $1 notes lack color-shifting ink, security threads, or watermarks
- Simple design: The iconic George Washington portrait hasn't changed substantially since 1963
- Economy of scale: Dollar bills account for roughly 45% of all notes printed annually
- Cotton-linen blend: The special paper (75% cotton, 25% linen) costs pennies per sheet
That said, costs are rising. The Bureau of Engraving and Printing's 2025 budget is over $1 billion, up from previous years due to inflation, security improvements, and facility upgrades.
The Cost of Keeping Cash Alive
Dollar bills don't last forever. The average $1 note survives just 6.6 years in circulation before it's too worn, torn, or dirty to use. Then it gets shredded and the Federal Reserve orders a replacement—costing another 2.8 to 7.5 cents.
Compare that to coins: a penny costs 3.08 cents to mint (yes, more than it's worth), but it lasts 25 years. A nickel costs 10.8 cents but also lasts decades. This is why some economists argue we should replace $1 bills with coins, like Canada and the UK did.
But Americans love their paper dollars. Multiple attempts to introduce $1 coins have failed spectacularly. So the Bureau keeps printing billions of bills at 2.8 cents a pop, knowing they'll be back in six years to print billions more.