Today we released our 2021 U.S. Bill Pay Market Size & Category Breakout Report, revealing that Americans spend $2.91 trillion annually – one fifth (20%) of all U.S. consumer spending – across 10 primary bill payment categories. In this report, statistical analysis of actual household payments was used to size the market and category across 37,000+ U.S. zip codes and 45 types of services. The report found that the average U.S. household spends $22,668 per year on bills and breaks out the household spending market size for each bill category, percentage of households that pay each bill, and average monthly and annual bill pay costs by state.
doxo’s proprietary dataset of consumer bill pay activity generates the industry’s most accurate category and regional statistics
doxo’s bill pay service enables all-in-one bill pay to more than 75,000 providers across the country in 45 different service categories. By incorporating tens of millions of bill payments across 37,000+ U.S. zip codes and all U.S. income and regional demographic segments, the 2021 U.S. Bill Pay Market Size & Category Breakout Report is a true and direct representation of what Americans actually pay on their bills. Updated for 2021, this proprietary dataset provides the foundation for doxoINSIGHTS’ bottoms-up market sizing of the 10 most common bills and makes category size and average spend transparent at the national, state, and local level. In contrast to other industry data sources – which often mix household recurring bill expenses with employer-paid or withheld expenditures (e.g. health insurance, taxes), and retail and discretionary spending (e.g. credit card balances) – doxo’s unique, nation-wide household bill pay data specifically quantifies the actual consumer portion of total recurring bill spend and household penetration rate for each category.
The report findings include breakouts by service category, household market penetration for each type of service, and household average spend per month by state.
$2.91 trillion total household bill pay spent across these categories:
- $788B Mortgage
- $558B Rent
- $463B Auto Loan
- $380B Utilities
- $235B Auto Insurance
- $149B Mobile Phone
- $147B Cable & Internet
- $134B Health Insurance (consumer-direct portion)
- $38B Life Insurance
- $29B Alarm & Security
The average U.S. household spends $22,668 per year on the most common bills
According to The U.S. Census Bureau, the real median household income in the U.S. is $65,712. This number, combined with doxo’s estimate that the average U.S. household spends $22,668 per year on common bills, suggests that more than one third of Americans’ yearly salary is put toward core expenses – a sizable portion of income by any measure.
While housing costs top monthly expenses, the report reveals that the average household is paying more out-of-pocket per month for mobile phone and cable/internet bills than health or life insurance, which are frequently covered by their employer or automatically deducted from paychecks. The average monthly amount of each bill paid in each category is:
- $1,279 Mortgage
- $1,062 Rent
- $412 Auto Loan
- $316 Utilities
- $186 Auto Insurance
- $116 Cable & Internet
- $113 Health Insurance
- $103 Mobile Phone
- $89 Life Insurance
- $87 Alarm & Security
Note that the market size of each category, and the total spend per household per year, factor in not just the average amount of each bill payment, but also the actual percentage of households paying each category. For example, consumers that pay rent are not typically also paying a mortgage. See the report below for these category details.
2021 U.S. Household Bill Pay Market Size & Category Breakout Report