In its 2023 Annual Report, the United States Mint disclosed that the cost of manufacturing coins increased across all denominations, and for the eighteenth straight year, the unit cost for both pennies and nickels was above their face values.
The U.S. Mint struck over 10.5 billion coins for circulation during the fiscal year, down from 12.1 billion coins in the prior one.
"FY 2023 circulating coin shipments to the Federal Reserve Bank decreased by 1.6 billion units (13.2 percent) to a total 10.5 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 U.S. Mint generates revenue from the sale of coins at face value when they are shipped to Federal Reserve Banks for distribution into circulation.
Cos to Make Pennies and Nickels
In FY 2023, the U.S. Mint’s toll to make, administer and distribute the 1-cent coin increased to 3.07 cents from 2.72 cents (12.9%) and the unit cost for the 5-cent coin rose to 11.54 cents from 10.41 cents (10.9%).
Despite reduced production totals leading to increased per-unit costs, the U.S. Mint did experience a break in the prices of the metals used in making coins throughout the year.
"FY 2023 average spot prices for nickel decreased 5.1 percent to $23,481.25 per tonne, average copper prices also decreased 8.5 percent to $8,437.44 per tonne, and average zinc prices decreased 22.3 percent to $2,772.07 per tonne," the U.S. Mint’s report noted.
Lincoln cents have a composition of 2.5% copper with the balance zinc, while five-cent coins are minted with 25% nickel and the balance copper. Dimes, quarters, and half dollars are each composed of 8.33% nickel with the balance in copper.
Cost to Make Dimes, Quarters and Half Dollars
Unlike cents and nickels, the U.S. Mint was profitable in minting dimes, quarters, and half dollars, as the cost of manufacturing and distributing them was lower than their face values.
In FY2023, unit costs increased:
- for the dime to 5.30 cents from 5.03 cents (5.4%),
- for the quarter to 11.63 cents from 11.11 cents (4.7%), and
- for the half dollar to 25.98 cents from 17.15 cents (51.5%).
The following two tables summarize Mint costs for the cent through half dollar in fiscal years 2021, 2022, and 2023.
FY 2023 Unit Cost to Produce and Distribute 1c, 5c, 10c, 25c, and 50c Coins
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | |
| Cost of Goods Sold ($) | 0.0272 | 0.1003 | 0.0463 | 0.1004 | 0.2203 |
| Sales, General & Administrative ($) | 0.0032 | 0.0138 | 0.0061 | 0.0145 | 0.0339 |
| Distribution to Reserve Banks ($) | 0.0003 | 0.0013 | 0.0006 | 0.0014 | 0.0056 |
| Total Unit Cost ($) | 0.0307 | 0.1154 | 0.0530 | 0.1163 | 0.2598 |
FY 2022 Unit Cost to Produce and Distribute 1c, 5c, 10c, 25c, and 50c Coins
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | |
| Cost of Goods Sold ($) | 0.0243 | 0.0917 | 0.0442 | 0.0975 | 0.1286 |
| Sales, General & Administrative ($) | 0.0026 | 0.0109 | 0.0054 | 0.0120 | 0.0286 |
| Distribution to Reserve Banks ($) | 0.0003 | 0.0015 | 0.0007 | 0.0016 | 0.0143 |
| Total Unit Cost ($) | 0.0272 | 0.1041 | 0.0503 | 0.1111 | 0.1715 |
FY 2021 Unit Cost to Produce and Distribute 1c, 5c, 10c, 25c, and 50c Coins
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | |
| Cost of Goods Sold ($) | 0.0181 | 0.0744 | 0.0386 | 0.0843 | 0.0917 |
| Sales, General & Administrative ($) | 0.0026 | 0.0095 | 0.0047 | 0.0106 | 0.0167 |
| Distribution to Reserve Banks ($) | 0.0003 | 0.0013 | 0.0006 | 0.0014 | 0.0083 |
| Total Unit Cost ($) | 0.0210 | 0.0852 | 0.0439 | 0.0963 | 0.1167 |
In profit from seigniorage — the difference between the face value and cost of producing and distributing circulating coins, the dime realized $125.5 million in FY 2023, while the quarter brought in $304 million. 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, resulting in the U.S. Mint earning $4.3 million from them.
In contrast, the cent and nickel have lost money since 2006.
Unit Costs and Seigniorage for Cent and Nickel from 2005 to 2023
| Fiscal Year | Lincoln Cent Unit Cost | Jefferson Nickel Unit Cost | Combined 1c and 5c Seigniorage (in millions) |
| 2005 | 0.0097 | 0.0484 | $4.40 |
| 2006 | 0.0121 | 0.0597 | ($32.90) |
| 2007 | 0.0167 | 0.0953 | ($98.60) |
| 2008 | 0.0142 | 0.0883 | ($47.00) |
| 2009 | 0.0162 | 0.0603 | ($22.00) |
| 2010 | 0.0179 | 0.0922 | ($42.60) |
| 2011 | 0.0241 | 0.1118 | ($116.70) |
| 2012 | 0.0200 | 0.1009 | ($109.20) |
| 2013 | 0.0183 | 0.0941 | ($104.50) |
| 2014 | 0.0166 | 0.0809 | ($90.50) |
| 2015 | 0.0143 | 0.0744 | ($74.40) |
| 2016 | 0.0150 | 0.0632 | ($66.80) |
| 2017 | 0.0182 | 0.0660 | ($89.80) |
| 2018 | 0.0206 | 0.0753 | ($119.00) |
| 2019 | 0.0199 | 0.0762 | ($102.90) |
| 2020 | 0.0176 | 0.0742 | ($101.00) |
| 2021 | 0.0210 | 0.0852 | ($144.60) |
| 2022 | 0.0272 | 0.1041 | ($171.00) |
| 2023 | 0.0307 | 0.1154 | ($178.60) |
The U.S. Mint produces and issues circulating coins to Federal Reserve Banks in quantities to support their service to commercial banks and other financial institutions. FY 2023 compared to the prior year saw production reductions across all but one denomination — the half dollar. During the fiscal year, the U.S. Mint shipped a total of:
- 4.136 billion cents, down 23.2% from the previous year,
- 1.416 billion nickels, down 1.8% from the previous year,
- 2.666 billion dimes, down 6.4% from the previous year,
- 2.274 billion quarters, down 6.3% from the previous year, and
- 18 million half dollars, up 157.1% from the previous year.
The five denominations together comprise 10.51 billion coins, marking a decrease of 1.6 billion, or 13.2%, from the 12.111 billion coins delivered in FY 2022.
The Federal Reserve pays face value for each coin they receive and, as such, the U.S. Mint’s FY 2023 revenue for circulating coins totaled $956.1 million, down 6.3% from $1,020.7 million in FY 2022.
2023 Coin Shipments, Costs and Seigniorage
(coins and dollars in millions)
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | Mutilated & Other | Total | |
| Coins Shipments | 4,136 | 1,416 | 2,666 | 2,274 | 18 | – | 10,510 |
| Value of Shipments | $41.4 | $70.8 | $266.6 | $568.4 | $8.9 | – | $956.1 |
| Gross Cost | $127.4 | $163.4 | $141.1 | $264.4 | $4.6 | $6.2 | $707.1 |
| Seigniorage | ($86.0) | ($92.6) | $125.5 | $304.0 | $4.3 | ($6.2) | $249.0 |
2022 Coin Shipments, Costs and Seigniorage
(coins and dollars in millions)
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | Mutilated & Other | Total | |
| Coins Shipments | 5,387 | 1,442 | 2,849 | 2,426 | 7 | – | 12,111 |
| Value of Shipments | $53.9 | $72.1 | $284.9 | $606.3 | $3.5 | – | $1,020.7 |
| Gross Cost | $146.9 | $150.1 | $143.3 | $269.2 | $1.2 | ($0.2) | $710.5 |
| Seigniorage | ($93.0) | ($78.0) | $141.6 | $337.1 | $2.3 | $0.2 | $310.2 |
2021 Coin Shipments, Costs and Seigniorage
(coins and dollars in millions)
| One-Cent | Five-Cent | Dime | Quarter | Half Dollar | Mutilated & Other | Total | |
| Coins Shipments | 7,613 | 1,736 | 3,066 | 2,274 | 12 | – | 14,701 |
| Value of Shipments | $76.1 | $86.8 | $306.6 | $568.5 | $6 | – | $1,044.0 |
| Gross Cost | $159.7 | $147.8 | $134.6 | $219.2 | $1.4 | $0.1 | $662.8 |
| Seigniorage | ($83.6) | ($61.0) | $172.0 | $349.3 | $4.6 | ($0.1) | $381.2 |
After subtracting the year’s cost to produce the coins, which totaled $707.1 million, the U.S. Mint’s circulating profit or seigniorage totaled $249 million, representing a decrease of $61.2 million, or 19.7%, from $310.2 million in FY 2022.
The Federal Government operates on a fiscal year that begins on October 1 and ends on September 30.
