It costs about 3.7 cents to make one U.S. penny as of 2024, which is nearly four times its face value of one cent
. This cost includes approximately 3 cents for production and an additional 0.7 cents for administrative and distribution expenses
. The penny is primarily made of zinc (97.5%) with a thin copper coating, and rising prices of these metals contribute significantly to the increased production cost
. Because the cost to produce a penny exceeds its value, the U.S. Mint loses money on every penny made, resulting in an estimated net loss of about $85 million in 2024 alone
. This inefficiency has led to calls for discontinuing penny production, as highlighted by former President Donald Trump who ordered the Treasury to stop making pennies to reduce wasteful spending
. In summary, the cost to make a penny is roughly 3.7 cents, making it financially unprofitable for the U.S. Mint to produce this coin.
