Why Retiring the Penny Could Save America $1 Billion in 10 Years

America is always looking for smarter ways to manage its money. One simple idea getting a lot of attention is getting rid of the penny. That small, copper-colored coin that often ends up lost in cars, couch cushions, or wallets might actually be costing the country big time.
Experts say that stopping penny production could save the U.S. nearly $1 billion over the next decade. Let’s take a closer look at why many leaders, economists, and everyday people think it’s time to say goodbye to the penny.

Why Making Pennies Is So Expensive

At first, a penny doesn’t seem like a big deal. But when you break down the numbers, it’s surprising.
It actually costs about three cents to make just one penny! That includes the cost of materials (mostly zinc and a little copper), manufacturing, labor, transportation, and distribution.

In 2024, the U.S. Mint spent about $140 million to produce 4.6 billion pennies, leading to a loss of over $95 million.

Here’s a quick look at recent years:

Year	Cost to Make Pennies	Total Loss
2022	$108 million	$108 million
2023	$93 million	$93 million
2024	$95 million (estimated)	$95 million

Because the prices of zinc and copper keep rising, the cost of making pennies will likely get even higher.

Other Countries Have Already Retired Small Coins

America wouldn’t be the first country to get rid of small coins. Many have done it successfully:

Country	Year Stopped	What They Did
Canada	2012	Rounded cash purchases to nearest 5 cents
Australia	1992	Rounded to nearest 5 cents
New Zealand	1989	Rounded to nearest 10 cents
Finland	2002 (with Euro)	Rounded prices

People in these countries quickly adjusted, and cash transactions became faster and easier.

America Has Retired Coins Before

Getting rid of coins isn’t new for the U.S. Over the years, several coins were retired when they no longer made sense:

• Half-cent coin (gone in 1857)
• Two-cent coin (gone in 1873)
• Three-cent coin (gone in 1889)
• Twenty-cent coin (gone in 1878)

Interestingly, the half-cent back then had more buying power than today’s dime!

Why the Penny Is Still Around

If the penny costs so much, why hasn’t it been retired yet?
The answer: lobbying.

A company called Artazn in Tennessee makes the metal blanks used for pennies. They have spent millions lobbying Congress to keep pennies in production.
Also, a group called Americans for Common Cents, funded by businesses that profit from the penny, campaigns to “save” the coin.

So, the real reason the penny sticks around isn’t public demand — it’s business interests.

Common Arguments for Keeping the Penny (and Why They Don’t Work)

Argument	Reality
Lincoln is on the penny, and he’s important	Lincoln is already honored on the $5 bill
Pennies help charities	Most donations today happen online or by card
Prices will go up	Studies show rounding has little impact on inflation
It hurts cash users	Only about 18% of purchases today are made with cash

While it’s natural to feel nostalgic, the facts show that retiring the penny makes financial sense.

What About Coin Collectors?

Some collectors might feel sad to see the penny go.
However, experts believe that pennies, especially older ones made mostly of copper (pre-1982), would become even more valuable.
Retiring the penny might actually boost interest in coin collecting!

How Rounding Would Work

If pennies are retired, cash transactions would round to the nearest five cents. Digital payments would not change at all.

Here’s an example:

Total Before	Cash Payment	Card or App Payment
$10.02	$10.00	$10.02
$10.03	$10.05	$10.03
$10.07	$10.05	$10.07
$10.08	$10.10	$10.08

As you can see, the difference is small and evens out over time.

Is It Time to Let Go of the Penny?

In a world filled with tap-to-pay, mobile wallets, and credit cards, the penny feels more outdated than ever.
It’s expensive to make, wastes time at checkouts, and clutters our coins.

Many top economists, former U.S. Mint officials, and politicians from both sides agree: retiring the penny is a smart move.
The biggest hurdle is the companies that profit from keeping it alive.

Saving $100 million a year could help fund schools, healthcare, or public services — much better than losing it to make coins few people even use.

Final Thoughts

The penny once played a vital role in American life, but times have changed. Other countries have already shown that getting rid of small, low-value coins can make transactions faster and simpler.

Maybe it’s time we move past nostalgia and make a decision that’s good for our wallets — and for the country’s future.

After all, it’s not about pinching pennies anymore.
It’s about saving dollars.

FAQs About Retiring the Penny