How Much Did a Gallon of Milk Cost In 1960

Published February 22, 2025 | By SaveCorner

Are you frustrated by the rising cost of milk? You’re not alone.

In 1960, a gallon of milk cost $0.52. Today, that same gallon costs around $3–$5, depending on where you live.

Let’s see how milk prices have changed since 1960 and discover four smart ways to save on your next purchase.

At the end of this post, I’ll share a secret on how to save as much as 6% on average on milk and groceries.

How Much Did a Gallon of Milk Cost in 1960? A Year-by-Year Breakdown

Here’s a look at how the average price of a gallon of milk has increased over the decades:

milk cost from 1960 to 2025

As you can see, milk prices have steadily climbed over the years.

Ten Ways to Save on Rising Milk Prices

If you want to save on milk, there are specific strategies that can help you cut costs without sacrificing quality.

Here are the best ways to save money on milk:

1. Buy in Bulk and Freeze It

Milk freezes well if you store it properly.
How to do it: Pour a little milk out (to prevent expansion cracks), seal the container, and freeze it. Thaw in the fridge when needed.
Savings: Buying larger quantities during sales can save $1–$3 per gallon over time.

2. Choose Store Brands Over Name Brands

No major difference in taste or quality.
Store-brand milk can be up to 30% cheaper than national brands.
Example: Aldi and Walmart often have milk priced $0.50–$1 cheaper per gallon.

3. Compare Grocery Store Prices

Milk prices vary by store, even within the same city.
Check warehouse stores (Costco, Sam’s Club), discount grocers (Aldi, Lidl), and local stores for the best price.
Apps like Flipp and Basket can compare store prices before you shop.

4. Use Grocery Store Loyalty Programs

Many grocery chains offer milk discounts through rewards programs.
Example: Safeway’s Just for U and Kroger’s Fuel Points often give milk discounts or cashback.
How to do it: Sign up for free and check digital coupons.

5. Buy Milk Near the Sell-By Date

Stores mark down milk that is close to expiration to clear stock.
Pro tip: Most milk stays safe for 5-7 days past the sell-by date if stored properly.
Savings: Up to 50% off.

6. Check Dollar Stores

Some dollar stores sell milk at a lower price than supermarkets.
Example: Dollar General and Family Dollar often have milk $0.50–$1 cheaper per gallon.

7. Use Credit Card Cashback on Groceries

Certain credit cards offer cashback on groceries, including milk.
Example:
- Amex Blue Cash Preferred: 6% cashback at grocery stores (up to $6,000 per year).
- Citi Custom Cash: 5% cashback on the highest spending category (grocery stores qualify).
Annual savings: Up to $30–$60 per year on milk alone.

8. Switch to Powdered or Shelf-Stable Milk

Shelf-stable UHT (ultra-high temperature) milk lasts months without refrigeration.
Powdered milk is cheaper per gallon and works for cooking.
Example: Nestlé Nido powdered milk can cost 50% less per gallon than fresh milk.

9. Use Milk Coupons and Cashback Apps

Apps like Ibotta, Checkout 51, and Fetch Rewards often have milk rebates.
How to do it: Scan receipts after buying milk.
Savings: Up to $0.50–$1 per gallon.

10. Cut Down on Milk Consumption

Use plant-based or alternative options (oat, soy, almond) when cheaper.
Dilute milk with 50% water for cooking, such as in pancakes or mashed potatoes.
Buy smaller containers if milk expires before you use it to reduce waste.

BONUS: Get Milk Directly from a Local Farm

Some farms sell raw or pasteurized milk cheaper than grocery stores.
Check local dairy co-ops or farmers’ markets for bulk discounts.

Stores with the Cheapest Milk Prices

Store	Price per Gallon	Notes
Aldi	$3.25	Known for budget-friendly prices. The Kitchn
Kroger	$2.79	Offers competitive pricing. Yahoo Money
Trader Joe’s	$3.59	Slightly higher but still reasonable. The Kitchn
Walmart	$4.86	Consistently low prices nationwide. thekrazycouponlady.com

Please note that prices can vary based on location and may have changed since these reports.

What Is the Cost of Milk Today?

Milk prices keep changing. Right now, the average price of a gallon of milk in the U.S. is $4.48. If you buy 2% milk, it costs about $4.40 per gallon.

How Much Does Organic Milk Cost?

Organic milk is more expensive. A half-gallon of organic milk costs $4.96.

That means a full gallon is nearly $9.92!

Milk Prices in Different Cities

Milk prices are not the same everywhere.

Here’s what a gallon costs in different cities:

Chicago, IL: $5.47
Dallas, TX: $3.42
New York, NY: $5.06
Denver, CO: $4.76
Philadelphia, PA: $5.18

Why Does Milk Cost More in Some Places?

Milk prices depend on a few things:

Distance: If stores are far from farms, milk costs more.
Demand: In big cities, more people buy milk, so prices go up.
Farm Costs: If feed and supplies for cows cost more, milk prices go up too.

How to Save on Milk

Want to pay less for milk?

Try these tricks:

Buy Store Brands: Store-brand milk is cheaper but tastes the same.
Shop Smart: Check different stores. Some sell milk for less.
Use Coupons & Cashback Apps: Apps like Ibotta and Fetch Rewards give you money back when you buy milk.

Milk prices change all the time, but knowing where to shop and how to save can help you spend less!

Best Days to Buy Milk

While specific days for milk discounts aren’t universally established, here are some general tips:

Midweek Shopping: Many stores restock shelves on Tuesdays and Wednesdays, which can be a good time to find fresh stock and potential markdowns.
Look for Clearance: Check for milk nearing its sell-by date; stores often discount these items to clear inventory.
Holiday Promotions: Keep an eye out for sales during holidays when stores offer discounts on dairy products.

Prices and promotions can change by location and time, so check with local stores for the latest deals.

How to Save Up to 6% on Milk and Groceries with a Cashback Card

What if you could get money back every time you buy milk?

Sounds too good to be true, right?

But it’s real, and it’s super easy.

If you use the right cashback credit card, you can save up to 6% on groceries, including milk.

That means if you spend $100 a week on groceries, you get back $6.

Over a year, that’s over $300 in free money!

The Best Card for Grocery Cashback

The Blue Cash Preferred® Card from American Express is the king of grocery savings.

It gives you:
✔ 6% cashback on groceries (up to $6,000 per year)
✔ $250 bonus if you meet spending requirements
✔ 1% cashback on everything else

How It Works

Use the card like a debit card for grocery shopping.
Every month, you’ll see cashback rewards added to your account.
You can redeem the cashback as credit on your bill—so it’s like free money!

How Much Can You Save on Milk?

If you spend $50 per week on milk and dairy, you’ll get back $3 per month.
If your total grocery bill is $500 per month, you’ll get back $30 per month.
That’s $360 per year, just for using the right card!

Even Better? No Extra Effort.

You don’t have to clip coupons. You don’t have to chase sales.

Just pay with your card and watch the cashback add up.

💡 Pro Tip: Pay off your balance in full every month so you don’t pay interest.

That way, you keep 100% of your savings.

If you’re buying milk anyway, why not get paid for it? 🥛💰

Get Paid to Buy Milk – Grab Your Cashback Card Today!

Listen, you’re already buying milk and groceries every week.

Why leave money on the table?

With this card, you get up to 6% back. That’s free cash just for shopping like you normally do.

This isn’t some gimmick. It’s real savings that add up fast.

Imagine getting $300+ back every year – just for using the right card.

No clipping coupons. No hunting for sales.

Just easy, automatic cashback.

But here’s the deal… this offer won’t last forever.

If you want the 6% cashback on groceries, you need to apply now before they change the terms.

👉 Click here to get the Blue Cash Preferred® Card today.

Fill out the quick application, get approved, and start earning cashback on your very next grocery trip.

💡 One more thing: If you sign up now and meet the spending requirements, you’ll get a $250 bonus. That’s like getting your milk FREE for the next several months.

Don’t wait. Every day without this card is money lost.

🔵 Apply now and start saving!

Sources

U.S. Bureau of Labor Statistics (BLS) – Historical milk price data showing price trends over time.
Visit BLS
U.S. Department of Agriculture (USDA) – Reports on milk prices received by farmers and how they impact retail costs.
Visit USDA
Statista – Retail price data for milk in the United States with year-over-year comparisons.
Visit Statista
Trading Economics – Up-to-date milk pricing trends with historical charts.
Visit Trading Economics

Affiliate Disclosure

This post contains affiliate links, including to Amazon. If you make a purchase or download through these links, I may earn a small commission at no extra cost to you.