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The Lifetime Cost of a Pet — and How to Pay for It
By Liliana Hall MONEY RESEARCH COLLECTIVE
Planning ahead can keep pet costs on a shorter leash.
Pet owners would do anything for their animals — but that care comes with a serious price tag.
Routine expenses for a cat or dog now average $4,272 a year, according to a new research survey from Money.com and Healthy Paws Pet Insurance. Over a 12-year lifespan, that adds up to more than $50,000 — and that’s before a major illness or emergency enters the picture
For many families, the real challenge isn’t just budgeting for day-to-day costs. The hard part is planning ahead and understanding the full scope of a pet’s lifetime cost. Pet services like veterinary care, grooming and boarding have climbed 38% since 2021. Veterinary care alone is up by 43%.
“Most pet owners aren’t fully prepared for the true cost of ownership,” says Tessa Steinemann, managing partner and chief financial officer at True Alpha Wealth Management. “The gap we’re seeing is that people manage day-to-day costs, but aren’t financially ready for larger, irregular expenses.”
Monthly pet costs add up quickly
Even routine care can take a noticeable bite out of a household budget. More than a third of survey respondents spent $100 or more per month just on food and treats. Veterinary care is another major cost: Roughly 29% of owners reported spending at least $100 monthly on medical visits, while another 16% said they spend at least that much on medications and supplements.
Many of those costs are easy to underestimate, Steinemann says. “Things like pet-sitting during travel, doggy daycare, regular grooming and quality food all vary by lifestyle and can materially impact the budget.”
For households with pets that have chronic health issues, the financial burden can be especially steep. About a quarter of those surveyed spent between $5,000 and $10,000 on pet-related expenses in just the past year. More than half (58%) said those costs caused financial stress — nearly double the rate of owners with healthy pets — and 62% said they had to cut spending elsewhere.
How pet owners pay for surprise expenses
When delaying care is not an option and costs exceed what they can cover upfront, many owners turn to a mix of resources: savings, credit cards, personal loans, payment plans and even crowdfunding.
For most, those difficult decisions are motivated by the emotional bonds of pet ownership. A follow-up survey by Money and Healthy Paws found 77% of owners view pets “like a child,” and a strong majority across all age groups and income levels said they were willing to go into debt to save their pet’s life.
This is one big reason why more owners are considering pet insurance as a way to manage their pet’s medical expenses. Claims data from Healthy Paws shows that the average vet bill was about $392 per claim in 2025, up 32% from 2020. Costs for some treatments have risen even faster, including abdominal conditions, cancer and foreign body ingestion.
Insurance coverage does come with costs. According to the North American Pet Health Insurance Association (NAPHIA), average monthly premiums for an accident and illness plan are around $70 for dogs and $36 for cats, not including deductibles or copayments. But for many pet owners, insurance helps soften the financial impact of major medical bills. Among survey respondents with coverage, 75% said it “significantly reduced” their out-of-pocket expenses, while 87% reported greater peace of mind and 84% said they would recommend it to others.
The biggest mistake, Steinemann says, is not estimating the full costs of ownership before getting a four-legged friend. “Most people don’t think through how these recurring costs fit into their monthly cash flow before bringing a pet home.”
Planning ahead can prevent costly surprises
Rather than taking on debt after your pet suffers an expensive health crisis, a more sustainable approach starts with calculating your total annual costs and allocating a consistent amount for pet care into your monthly budget. “Setting aside money each month ensures funds are available when larger or unexpected expenses come up,” she says. Another alternative is to put that money towards pet insurance when your pet is still young and healthy. This can help you proactively plan for unexpected illness or injury, especially if you haven’t had enough time to build a strong emergency fund.
Ultimately, owning a pet is both an emotional and a financial commitment. Planning ahead with a combination of budgeting, savings and insurance can make it easier to give your pets the care they need without stressing your household budget.
Healthy Paws has your furbaby covered!
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Liliana Hall is an Austin-based reporter for Money, where she covers a range of topics, including financial news, policy, banking, investing, passive income, financial planning and student loan debt. Passionate about accessibility and financial literacy, she’s dedicated to helping readers navigate the complexities of money management and feel empowered to make informed decisions about their financial futures. Previously, Liliana covered all angles of personal finance as a writer and editor at CreditCards.com, Bankrate and CNET. Before she ever wrote about money, she worked in a handful of newsrooms across Austin, Texas, covering everything from the Texas Legislature to SXSW and the 2019 Men’s NCAA Swimming and Diving Championships. Her work has been featured in The Daily Texan, Austin Chronicle and KUT. A Texas native, Liliana graduated from the University of Texas at Austin with a bachelor’s degree in Journalism. When she’s offline, you can probably find her paddle boarding on Lady Bird Lake, riding her moped around town or reading for her book club.