Americans are on track to spend about $165 billion on their pets in 2026, according to the American Pet Products Association.
That figure spans every species and every expense, from dog food and cat litter to surgery bills and the purchase price of the animal itself. Spread across roughly 95 million U.S. households that owned a pet in 2025, this averages about $1,700 a year per household.
To put this in perspective, Americans spend $105 billion on lottery tickets, without any of the enjoyment associated with pet ownership for most of them.
How much is your pet worth to you?
The first year
Adoption fees at a shelter or rescue commonly run a few hundred dollars, and often include spaying or neutering, first vaccinations and a microchip. A purebred from a breeder costs far more, often well into four figures for a dog.
Then, a dog needs a crate, a bed, bowls, a leash and a carrier. A cat needs a litter box, a scratching post and a carrier of its own. The list adds up fast in the first few weeks.
Annual costs
Food and routine veterinary care account for most recurring costs.
Dog owners spent an average of $598 a year on veterinary care in 2025 compared to $529 for cat owners, according to the American Veterinary Medical Association. Add food, supplies, grooming, litter and the occasional boarding stay, and the yearly total for most households lands in the low four figures, with dogs at the higher end.
Unplanned expenses
A dog that swallows a sock or a toy can need emergency surgery costing $2,000 to $8,000, according to pet-insurer claims data, and a serious diagnosis like cancer can run into five figures once you add surgery, chemotherapy, and follow-up care.
Veterinary services rose 5.7% over the past year, compared with 3.4% for overall inflation, according to Bureau of Labor Statistics data.
Few households are ready for a surprise that size. Two-thirds of pet owners said the most they could put toward lifesaving treatment is $1,000 or less, according to a 2025 PetSmart Charities and Gallup study.
Plan for surprises
One unexpected surgery can easily run $2,000 to $5,000, forcing a heartbreaking choice between your savings and your companion. The good news is that protection is affordable. A comparison of leading providers based on reimbursement speed and coverage limits has plans starting as low as $10/month.
Only about 4% of U.S. pets carry insurance, which means most owners already self-fund emergency expenses. Since Americans spend thousands on their pets every year, an insurance policy that protects against a much larger bill seems like a good idea. Compared to the remote possibility of winning the lottery, you might even consider it money well spent.
Before getting pet insurance, check the deductible, the reimbursement rate, the exclusions, and how much emergency costs you could cover on your own. Pre-existing conditions are generally not covered, so you should insure before a diagnosis, not after. Compare providers now.
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