Costs of Major U.S. Wars

Costs of Major U.S. Wars
Stephen Daggett
Specialist in Defense Policy and Budgets
Foreign Affairs, Defense, and Trade Division
Summary
This CRS report provides estimates of the costs of major U.S. wars from the
American Revolution through current conflicts in Iraq, Afghanistan, and elsewhere. It
gives figures both in “current year dollars,” that is, in prices in effect at the time of each
war, and in inflation-adjusted “constant dollars” updated to the most recently available
estimates of FY2008 prices. All estimates are of the costs of military operations only and
do not include costs of veterans benefits, interest paid for borrowing money to finance
wars, or assistance to allies. The report also provides estimates of the cost of each war
as a share of Gross Domestic Product (GDP) during the peak year of each conflict and
of overall defense spending as a share of GDP at the peak. This report will be updated
periodically to reflect additional appropriations for ongoing conflicts and to adjust
constant dollar figures to prices of the current fiscal year.
Since the terrorist attacks of September 11, 2001, Congress has appropriated more
than $800 billion for military operations in Afghanistan, Iraq, and elsewhere around the
world, including $65 billion to cover costs for the first few months of FY2009. Almost
as soon as the next Administration takes office, the military services are expected to
submit requests for additional funds — quite possibly $100 billion or more — to cover
costs of overseas operations and of repairing and replacing worn equipment through the
remainder of the fiscal year. In the face of these rather substantial and growing amounts,
a recurring question has been how the mounting costs of the nation’s current wars
compare to the costs of earlier conflicts.
The following table provides estimates of costs of major wars from the American
Revolution through Korea, Vietnam, the Persian Gulf war of 1990-1991, and current
conflicts. It also provides estimates of war costs as a share of the economy. Comparisons
of costs of wars over a 230 year period, however, are inherently problematic. One problem
is how to separate costs of military operations from costs of forces in peacetime. In recent
years, the Defense Department has tried to identify the additional “incremental” expenses
of engaging in military operations, over and above the costs of maintaining standing
military forces. Before the Vietnam conflict, however, the Defense Department and others
did not view war costs in such terms.

Military Costs of Major U.S. Wars
⁽^U^p^d^a^t^e^d^t^o^Iⁿ^c^l^ud^e^A^p^p^r^o^p^rⁱ^a^tⁱ^o^{ns E}ⁿ^a^c^t^e^d^T^h^r^o^{ugh J}^une³⁰^,²⁰⁰⁸⁾
^Y^e^ars^of^Peak^Y^e^{ar of}
^Wa^{r Spending}^Wa^{r Spending}
^To^t^a^{l M}^ilit^a^r^y^Wa^{r Co}^st^To^t^a^{l D}^e^f^e^nse
^Co^{st o}^f^Wa^{r in}^{% G}^D^{P in}^{% G}^D^{P in}
^M^illio^ns/B^illio^ns^Peak^Y^e^{ar of}^Peak^Y^e^{ar of}
^o^f^Do^lla^rs^Wa^r^Wa^r
^A^m^eri^can^R^e^vol^u^tⁱ^oⁿ^1775-1783
^C^u^rren^t^{Year $}^{101 m}^illion^NA^NA
^C^oⁿ^s^tan^t^FY^2008$^1,825^m^illion
^W^a^{r of 1812}^1812-1815¹⁸¹³
^Cu^r^r^eⁿ^t^Year^$⁹⁰^m^illioⁿ²^.²^%²^.⁷^%
^C^oⁿ^s^tan^t^FY^2008$^1,177^m^illion
^M^e^xⁱ^can^W^a^r^1846-1849¹⁸⁴⁷
^Cu^r^r^eⁿ^t^Year^$⁷¹^m^illioⁿ¹^.⁴^%¹^.⁹^%
^C^oⁿ^s^tan^t^FY^2008$^1,801^m^illion
^Cⁱ^vi^l^W^a^{r: U}ⁿⁱ^oⁿ^1861-1865¹⁸⁶⁵
^C^u^rren^t^{Year $}^{3,183 m}^illion^11.^3%^11.7%
^C^oⁿ^s^tan^t^FY^2008$^45,199^m^illion
^Cⁱ^vi^l^W^a^{r: C}^oⁿ^f^ed^eracy^1861-1865
^C^u^rren^t^{Year $}^{1,000 m}^illion^NA^NA
^C^oⁿ^s^tan^t^FY^2008$^15,244^m^illion
^S^p^aⁿⁱ^s^h^A^m^eri^can^W^a^r^1898-1899¹⁸⁹⁹
^C^u^rren^t^{Year $}^{283 m}^illion^1.1%^1.5%
^C^oⁿ^s^tan^t^FY^{2008$ 6,848}^m^illion
^W^o^rl^d^W^a^{r I}^1917-1921¹⁹¹⁹
^Cu^r^r^eⁿ^t^Year^$²⁰^b^illioⁿ¹³^.⁶^%¹⁴^.¹^%
^C^oⁿ^s^tan^t^FY^2008$²⁵³^billion
^W^o^rl^d^W^a^{r I}^I^1941-1945¹⁹⁴⁵
^C^u^rren^t^{Year $}^{296 b}^illion^35.^8%^37.5%
^C^oⁿ^s^tan^t^FY^2008$^4,114^billion
^Korea^1950-1953¹⁹⁵²
^Cu^r^r^eⁿ^t^Year^$³⁰^b^illioⁿ⁴^.²^%¹³^.²^%
^C^oⁿ^s^tan^t^{FY2008$ 320}^billion
^Vⁱ^etn^a^m^1965-1975¹⁹⁶⁸
^C^u^rren^t^{Year $}^{111 b}^illion^2.^3%^9.5%
^C^oⁿ^s^tan^t^FY^2008$⁶⁸⁶^billion
^Persⁱ^aⁿ^G^u^l^f^W^a^{r /}^a^/^1990-1991¹⁹⁹¹
^Cu^r^r^eⁿ^t^Year^$⁶¹^b^illioⁿ⁰^.³^%⁴^.⁶^%
^C^oⁿ^s^tan^t^FY^2008$⁹⁶^billion
^I^r^aq^/^b^/^2003-Pres^en^t²⁰⁰⁸
^C^u^rren^t^{Year $}^{616 b}^illion^1.^0%^4.2%
^C^oⁿ^s^tan^t^FY^2008$⁶⁴⁸^billion
^A^f^gh^anⁱ^s^tan^/^G^W^OT^/^b^,c/^2001-Pres^en^t²⁰⁰⁷
^C^u^rren^t^{Year $}^{159 b}^illion^0.^3%^4.0%
^C^oⁿ^s^tan^t^FY^2008$¹⁷¹^billion
^Pos^{t-9/11 Dom}^e^s^t^{ic Security}
^(Op^erati^on^N^o^b^l^{e E}^agl^{e) /}^b^/^2001-Pres^en^t²⁰⁰³
^Cu^r^r^eⁿ^t^Year^$²⁸^b^illioⁿ⁰^.¹^%³^.⁷^%
^C^oⁿ^s^tan^t^FY^2008$³³^billion
^T^o^tal^Pos^t-9/^{11 — I}^r^aq^,
^A^f^gh^anⁱ^s^tan^/^G^W^OT^{, ON}^E^/^d^/^2001-Pres^en^t²⁰⁰⁸
^C^u^rren^t^{Year $}^{809 b}^illion^1.^2%^4.2%
^C^oⁿ^s^tan^t^FY^2008$⁸⁵⁹^billion

^Sources^:^A^{ll estim}^{ates ar}^{e o}^f^th^{e co}^{sts o}^f^m^ilitar^y^o^p^e^r^a^tioⁿ^s^oⁿ^ly^an^d^d^oⁿ^o^{t r}^e^f^l^ect^co^{sts o}^f^v^e^ter^aⁿ^s^b^eⁿ^e^f^its,
ⁱⁿ^ter^e^{st o}ⁿ^w^a^r^-^r^e^lated^d^e^b^t^{, o}^r^assistan^{ce to}^{allies. Ex}^cep^t^f^o^r^co^sts^o^f^th^{e A}^m^er^ican^Rev^o^lu^tioⁿ^an^d^th^{e Civ}ⁱ^l
^W^a^{r cos}^t^s^of^th^{e C}^oⁿ^f^ederacy^{, all es}^tim^ates^{are bas}^e^{d on}^{U.S. go}^ve^rⁿ^m^e^{nt bu}^dg^{et data. C}^u^rren^{t y}^{ear dollar}
^es^tⁱ^m^at^es^of^t^h^e^cos^t^s^of^t^h^{e War of}^{1812 t}^h^o^{ugh W}^o^r^l^d^W^a^r^I^I^r^e^p^r^e^s^eⁿ^t^t^h^eⁱⁿ^c^r^e^a^s^eⁱⁿ^A^r^m^y^aⁿ^d^N^a^vy^o^u^t^l^a^y^s
^d^u^rin^g^th^{e p}^e^rio^d^o^f^each^w^a^{r co}^m^p^ared^to^av^erag^e^m^ilitary^sp^en^dⁱⁿ^gⁱⁿ^th^{e p}^r^ev^io^u^s^th^{ree y}^{ears. Fo}^{r th}^{e Civ}ⁱ^l
^W^a^r^cos^t^s^of^th^{e C}^oⁿ^f^ederacy^{, th}^{e es}^tim^{ate is}^f^r^om^th^e^St^atⁱ^s^tⁱ^c^al^Abs^t^r^a^ct^of^t^h^{e U}ⁿⁱ^t^e^{d St}^at^es^{, 1994. F}^o^{r t}^h^e
^A^m^eri^can^R^e^v^o^l^u^tⁱ^oⁿ^,^t^h^{e es}^tⁱ^m^at^{e i}^s^f^r^om^an^uⁿ^o^f^fⁱ^ci^al^fⁱⁿ^aⁿ^cⁱ^a^l^hⁱ^s^t^ory^of^t^h^{e U}ⁿⁱ^t^e^{d S}^t^at^es^pu^blⁱ^s^h^e^{d i}ⁿ^1895.
^{For th}^{e Korean}^W^a^{r, th}^{e es}^tim^{ate repres}^en^tsⁱⁿ^creas^{ed ex}^pen^d^itu^res^of^th^e^Departm^eⁿ^t^of^Def^eⁿ^s^e^du^rin^g^th^e
^{period of}^th^{e con}^f^{lict com}^p^{ared to th}^e^proj^{ected tren}^{d f}^r^om^th^{e av}^erag^{e of}^th^{ree y}^ears^bef^o^{re th}^e^w^a^r^to^th^ree
^y^ears^af^ter.^{For th}^{e Vietn}^a^m^W^a^{r an}^{d th}^{e P}^e^rs^ian^Gu^lf^W^a^{r, f}ⁱ^g^u^r^es^{are Departm}^eⁿ^t^of^Def^eⁿ^s^{e es}^tim^ates^of^th^e
ⁱⁿ^cr^em^en^{tal co}^{sts o}^f^o^p^e^r^a^tioⁿ^s^{, m}^eanⁱⁿ^g^th^{e co}^{sts o}^f^w^a^r^-^r^e^lated^activ^{ities o}^v^er^an^d^ab^o^v^e^t^h^e^r^e^g^u^l^ar^,
^no^n-w^a^rtⁱ^m^{e cos}^t^s^of^def^eⁿ^s^{e. F}^o^{r operat}ⁱ^oⁿ^s^sⁱⁿ^{ce S}^e^pt^em^{ber 11, 2001, f}ⁱ^g^u^r^es^ref^l^ect^C^R^S^es^tⁱ^m^at^e^s^o^f
^am^ouⁿ^t^s^appropri^a^t^e^d^t^o^cov^e^{r w}^a^r-^rel^a^t^e^{d cos}^t^s^.^T^h^{e cu}^rren^{t y}^{ear dollar es}^tim^ates^{are con}^v^e^{rted to con}^s^tan^t
^pri^ces^u^sⁱⁿ^g^es^tⁱ^m^at^es^of^ch^ange^sⁱⁿ^t^h^e^c^oⁿ^s^u^m^{er pri}^{ce i}ⁿ^dex^f^o^{r y}^ears^pri^o^{r t}^o^{1940 an}^{d u}^sⁱⁿ^g^O^f^fⁱ^{ce of}
^Man^a^g^e^m^eⁿ^t^an^{d B}^u^dg^{et an}^{d Departm}^eⁿ^t^of^Defen^s^{e es}^tim^ates^of^def^eⁿ^s^{e in}^f^l^ation^f^o^{r y}^ears^th^ereaf^{ter. T}^h^e
^C^P^{I es}^tim^ates^u^s^{ed h}^e^{re are f}^r^om^{a data bas}^e^m^aⁱⁿ^tain^{ed at Oreg}^on^State^Un^iv^ers^ity^.^T^h^{e data bas}^e^periodically
^u^pdates^fⁱ^g^u^r^es^f^o^{r n}^e^w^of^fⁱ^{cial C}^P^{I es}^tim^ates^of^th^{e U.S. Departm}^eⁿ^t^of^C^o^m^m^e^rce.
^{a. Mo}^{st P}^e^rsian^Gu^lf^W^a^{r co}^{sts w}^e^{re o}^f^f^s^{et b}^y^allied^coⁿ^t^rib^u^tioⁿ^s^o^r^w^e^re^ab^so^rb^ed^b^y^{DOD. Net co}^{sts to}^U.S.
^ta^xp^a^y^e^r^{s to}^ta^le^d^$4.^{7 b}^illio^{n in c}^u^r^r^e^{nt y}^e^a^r^d^o^lla^r^s^.^So^ur^c^e^:^De^p^a^r^t^m^e^{nt o}^f^De^fe^nse^A^nnua^{l Re}^p^o^r^{t to}^Co^ngr^e^s^s
^f^o^{r F}ⁱ^s^cal^Y^{ear 1994, Jan}^u^a^ry^{, 1993.}
^{b. T}^o^t^a^l^s^fo^r^p^o^s^t^-⁹^/¹¹^o^p^e^r^a^tⁱ^o^{ns i}ⁿ^c^l^ud^e^a^l^l^fund^{s a}^p^p^r^o^p^rⁱ^a^t^e^d^t^h^r^o^{ugh t}^h^e^eⁿ^a^c^t^m^e^nt^o^f^FY^{2008 s}^u^ppl^em^eⁿ^t^a^l
^appropri^a^tⁱ^oⁿ^s^an^{d F}^Y^{2009 “}^b^ri^dg^{e f}^uⁿ^d^{” appropri}^a^tⁱ^oⁿ^sⁱⁿ^P.L^.^110-^252,^w^hⁱ^c^h^t^h^{e Pres}ⁱ^d^en^t^sⁱ^gⁿ^e^{d i}ⁿ^t^o^l^a^w
^on^J^uⁿ^e^{30, 2008. T}^o^tals^are^f^o^r^m^ilitary^operation^s^on^ly^an^{d do n}^o^{t in}^clu^d^{e cos}^t^s^of^recon^s^tru^c^tion^as^sⁱ^s^t^an^ce,
^dⁱ^p^l^o^m^atic^secu^r^ity^,^an^d^o^t^h^e^r^activ^{ities b}^y^o^t^h^e^r^ag^en^{cies. Fig}^u^r^{es f}^o^r^p^o^s^t-⁹^/¹¹^co^{sts ar}^e^f^o^r^b^u^d^g^et^au^th^o^r^ity
^{— all oth}^e^{r f}ⁱ^g^u^r^es^{are f}^o^{r ou}^tlay^s^.
^c^.^Re^fl^e^c^t^{s fund}ⁱ^{ng fo}^r^“O^p^e^r^a^tⁱ^o^{n E}ⁿ^d^u^rⁱ^ng^Fr^e^e^d^o^m^,^”^t^h^e^b^u^l^k^o^f^w^hⁱ^c^{h i}^s^fo^r^o^p^e^r^a^tⁱ^o^{ns i}ⁿ^A^f^ghaⁿⁱ^st^aⁿ^b^u^t
^w^h^ich^alsoⁱⁿ^clu^d^{es am}^o^uⁿ^t^{s f}^o^r^o^p^e^r^a^tioⁿ^sⁱⁿ^th^e^P^h^ilippin^e^s^,^th^{e Horn}^of^A^f^{rica, an}^{d oth}^e^{r areas}^.
^d^.^B^a^s^e^d^oⁿ^d^a^{ta av}^ailab^l^{e f}^r^o^m^{DOD, CRS is n}^o^{t ab}^{le to}^allo^{cate $}⁵^.⁵^b^illioⁿ⁽ⁱⁿ^cu^rren^t^y^{ear d}^o^{llars) in}
^F^Y^{2003 by}^mⁱ^s^sⁱ^on^{. T}^h^at^am^ouⁿ^tⁱ^sⁱⁿ^cl^u^d^{ed h}^e^{re i}ⁿ^t^h^{e t}^o^t^a^l^f^o^{r al}^l^pos^t^-^9/^{11 operat}ⁱ^oⁿ^s^.
Figures are problematic, as well, because of difficulties in comparing prices from one
vastly different era to another. Inflation is one issue. Perhaps a more significant problem
is that wars appear more expensive over time as the sophistication and cost of technology
advances, both for wars and for civilian activities. Adjusted for inflation, the War of 1812
cost about $1.3 billion in today’s prices, which appears by contemporary standards to be
a relatively small amount. But using commonly available estimates of gross domestic^th
product, the overall U.S. economy 195 years ago was less that 1/1400 as large as it is
today. The data in the attached table, therefore, should be treated, not as truly comparable
figures on a continuum, but as snapshots of periods of U.S. history viewed through very
different lenses over time.
Varying Definitions of War Costs
For the Vietnam War and the 1990-1991 Persian Gulf War, the figures reported here
are Department of Defense estimates of the “incremental” costs of military operations —
i.e., the costs of war-related activities over and above the normal, day-to-day costs of
recruiting, paying, training, and equipping standing military forces. Estimates of the costs
of post-9/11 operations in Afghanistan, Iraq, and elsewhere are by Amy Belasco of CRS,
based on (1) amounts appropriated by Congress in budget accounts designated to cover

war-related expenses and (2) allocations of funds in reports on obligations of appropriated
amounts by the Department of Defense.¹ These figures appear to reflect a broader
definition of war-related expenses than earlier DOD estimates of incremental costs of the
Vietnam and Persian Gulf conflicts.
In years prior to the Vietnam War, neither the Defense Department nor any other
agency or organization attempted to calculate incremental costs of war-related operations
as opposed to normal peace-time activities. In the absence of official accounts of war
expenditures, CRS estimated the costs of most earlier wars — except for the American
Revolution, the Confederate side of the Civil War, and the Korean conflict — by
comparing war-time expenditures of the Army and the Navy with average outlays for the
three years prior to each war. The premise is the cost of wars reflects, in each case, a
temporary buildup of forces from the pre-war level.
During the Korean War, however, the United States engaged in a large buildup of
forces not just for the war, but elsewhere in the world as well. For the Korean conflict,
therefore, CRS compared outlays for the Department of Defense during the war with a
trend line from average expenditures of the three years before the war to average
expenditures of the three years after the war.
Data on the costs of most conflicts from the War of 1812 through the Korean war are
based on official estimates of the budgets of the Army, Navy, and, for Korea, the Air
Force. No such official figures are available, however, for the Revolution or for the
confederate states during the Civil War. Estimates of the costs of the American
Revolution are from a financial history of the United States cited in a thorough Legislative
Reference Service memo prepared in 1956.² Estimates of the Civil War costs of the
confederacy are from the Statistical Abstract of the United States 1994 edition.
Sources of Data on Military Expenditures and GDP
Data on Army and Navy outlays prior to 1940 are from the Department of
Commerce, Historical Statistics of the United States from Colonial Times to 1970, Part

2, 1975. GDP estimates prior to 1940 are from Louis D. Johnston and Samuel H.

Williamson, “The Annual Real and Nominal GDP for these United States, 1790 -
Present.” Economic History Services, October 2005, at [http://www.eh.net/hmit/gdp/].
Outlays and GDP figures from FY1940 on are from the Office of Management and
Budget.³

¹ For a full discussion see CRS Report RL33110, The Cost of Iraq, Afghanistan, and Other
Global War on Terror Operations Since 9/11, by Amy Belasco, updated regularly.
² Raymond E. Manning, Senior Specialist in Taxation and Fiscal Policy, Legislative Reference
Service, “Cost of U.S. Wars,” October 1956, 34pp. The Legislative Reference Service was
renamed as the Congressional Research Service in 1970.
³ Office of Management and Budget, Historical Tables: Budget of the United States Government
Fiscal Year 2009, February 2008, Table 3.1 and Table 10.1.

Sources of Data on Inflation Adjustments
For each conflict, CRS converted cost estimates in current year prices into constant
FY2008 prices using readily available inflation indices. For years since 1948, CRS used
an index of inflation in defense outlays from the Department of Defense. For years from
1940-1947, CRS used an index of inflation in defense outlays from the Office of
Management and Budget.⁴ For years prior to 1940, CRS used an index based on the
Consumer Price Index (CPI) that the U.S. Department of Labor, Bureau of Labor
Statistics (BLS) maintains and updates quarterly. That index extends back to 1913. For
earlier years, CRS used an extension of the CPI by academic researchers which is
maintained at Oregon State University.⁵ That index also uses the official BLS CPI from
1913 forward and periodically updates both earlier and later figures to reflect new, official
CPI estimates.
Inflation adjustments extending over a period of more than 200 years are problematic
in many ways. The estimates used here are from reliable academic sources, but other
experts might use different indices of prices or might weight sources differently and come
up with quite different results. In addition, over long periods, the relative costs of goods
within the economy change dramatically. It is difficult to know what it really means to
compare costs of the American Revolution to costs of military operations in Iraq when,
230 years ago, the most sophisticated weaponry was a 36-gun frigate that is hardly
comparable to a modern $3.5 billion destroyer. Comparisons of costs in inflation adjusted
prices, therefore, should not be taken as anything more than a very rough exercise. Finally,
the inflation indices used here are more specialized for more recent periods. Figures since
1940 are adjusted using factors specific to defense expenditures, but no such index is
available for earlier years.

⁴ U.S. Department of Defense, Under Secretary of Defense (Comptroller), National Defense
Budget Estimates for FY2009, March 2008, Table 5-8, “DOD Outlay Deflators by Title” for
figures from FY1970 on and Table 6-11 “Outlays by Appropriations Title — FY1948-FY2013”
for calculated figures from FY1948 on (DOD provided copies of both tables to CRS in advance
of publication). Office of Management and Budget, Historical Tables: Budget of the United
States Government Fiscal Year 2009, February 2008, Table 10.1 “Gross Domestic Product and
Deflators Used in the Historical Tables: 1940-2010.”
⁵ Robert Sahr, Oregon State University, “Inflation Conversion Factors for Dollars 1665 to
Estimated 2017,” available on line at [http://oregonstate.edu/cla/polisci/faculty/sahr/sahr.htm].
The data prior to 1913 are based on research reported in John J. McCusker, “How Much Is That
in Real Money?,” Proceedings of the American Antiquarian Society (2001). A number of
alternative indices are provided at [http://measuringworth.com/calculators/uscompare/], and at
[http://eh.net/hmit/].