How Much Do Funeral Costs Increase Each Year in the U.S.
The cost of dying in America keeps climbing higher and higher every single year. Families across the country are discovering that saying goodbye to a loved one comes with a hefty price tag that seems to grow faster than almost any other expense in their lives. Understanding how much funeral costs rise annually helps families prepare financially and make informed decisions during one of life’s most difficult moments.
The Overall Picture of Rising Funeral Costs
Funeral expenses in the United States have experienced dramatic price increases over the past several decades. When you compare funeral costs from 1986 to 2025, the numbers tell a striking story. Prices for funeral expenses are 304.17 percent higher in 2025 compared to 1986[2]. This means that what cost one dollar in 1986 now costs more than four dollars today. This rate of increase far outpaces many other consumer goods and services, making funeral planning increasingly challenging for American families.
The Current State of Funeral Expenses in 2025
Right now in 2025, Americans are facing substantial end-of-life costs. The average total cost for end-of-life care in the United States reaches $88,300 in 2025[1]. This figure breaks down into two major categories: final-year medical expenses totaling approximately $80,000 and funeral and burial costs averaging $8,300[1]. These numbers represent what a typical family might expect to pay when dealing with the death of a loved one.
Breaking Down the Funeral Service Costs
When families focus specifically on funeral services, the costs vary depending on the type of service they choose. A burial with viewing, which is a traditional funeral service, costs a median of $8,300 in 2023 according to the National Funeral Directors Association[1]. Cremation with services averages $6,280[1]. These prices include professional services, transportation, body preparation, caskets or containers, facility use and permits[1].
For families seeking more affordable options, direct burial costs approximately $2,800, while direct cremation ranges from $1,500 to $2,000[1]. However, families often add additional expenses like cemetery plots, vaults, or headstones, which can add $1,000 to $5,000 to the total bill[1].
The Shift Toward Cremation and Its Impact on Costs
One significant trend affecting funeral costs is the dramatic increase in cremation rates. About 63.4 percent of Americans chose cremation in 2025, with projections showing this number will reach 82.3 percent by 2045[1]. This shift is driven by affordability and flexibility[1]. As more families choose cremation over traditional burial, the funeral industry is adapting its pricing and service offerings.
The cremation rate in 2025 stands at 63.4 percent for cremation and 31.6 percent for burial[3]. This represents a fundamental change in how Americans approach end-of-life arrangements. The movement toward cremation reflects both financial concerns and changing cultural attitudes about death and remembrance.
The Financial Burden on American Families
The rising costs of funerals have created a serious financial crisis for many American families. A recent survey found that 37 percent of U.S. adults have borrowed to pay for funeral or end-of-life expenses, representing a steep rise from just 14 percent in 2024[4]. This means that more than one in three Americans are now taking on debt to cover these expenses.
The methods families use to borrow money reveal the desperation many feel. Among those who borrowed, 59 percent used credit cards, 38 percent relied on personal loans, and 22 percent turned to funeral-specific financing[4]. Credit cards remain the most common way to cover funeral and end-of-life expenses, underscoring the rising financial strain of saying goodbye[4].
The amounts families are borrowing have also increased significantly. In 2024, only 6 percent of Americans took on less than $1,000 in funeral debt, but in 2025 that number jumped to 13 percent[4]. For those taking on $1,000 to $5,000, the percentage rose from 6 percent in 2024 to 17 percent in 2025[4]. Most troubling, Americans taking on more than $5,000 in debt increased from just 2 percent in 2024 to 7 percent in 2025[4].
The Inability to Afford Funerals Without Debt
Perhaps the most alarming statistic is that nearly three in five Americans, or 57 percent, say they could not afford a loved one’s funeral costs today without incurring debt[4]. This reveals a fundamental problem in American society where families cannot pay for basic end-of-life services without borrowing money during their time of grief.
When asked hypothetically about their willingness to take on debt for a family member’s funeral, more than three in five Americans say they would do so[6]. About 23 percent would take on over $5,000 of debt for a loved one’s funeral, and 7 percent would take on more than $10,000[6]. These numbers show that families view funeral expenses as non-negotiable, even if it means going into significant debt.
The Role of Consolidation in Rising Prices
One factor contributing to rising funeral costs is the consolidation of funeral homes into large corporate chains. A study from the Consumer Federation of America found that median prices at SCI funeral products were 47 to 72 percent higher than independent funeral homes[7]. SCI rose to prominence in the 1990s and has become one of the largest funeral home operators in the country[7].
An analysis using 2024 pricing data from the Funeral Consumers Alliance of Western Massachusetts found that all three major companies accounting for 25 percent of the 81 funeral homes in the area had higher average prices across six price categories than the average prices charged by their independently owned competitors[7]. This consolidation trend means that in many areas, families have fewer choices and often face higher prices when they need funeral services most.
The Lack of Consumer Preparation
One reason families struggle with funeral costs is that they often do not plan ahead or understand their options. Half of all Americans have not discussed how their debt or funeral expenses will be handled[4]. Additionally, while knowledge about what happens to someone’s debt after they die has improved, it remains limited. In 2025, only 55 percent of Americans reported knowing what happens to someone’s debt after they die, down 6 points from 61 percent in 2024[4][6].
This lack of preparation means families are making major financial decisions while grieving and under time pressure. As one expert noted, families do not educate themselves about what happens
