The real cost of owning a dog: What future owners should know

Paws for thought – Money Magazine October Feature

Buying a dog is often a decision lead by the heart, not the wallet. But future owners are being urged to carefully consider the financial impact – and not just the upfront cost.

On average, dog owners spend about $4000 during their first year of ownership, according to a 2025 report published by Animal Medicines Australia.

In subsequent years, that figure drops to about $2,500, with food, veterinary services and pet insurance found to be the top ongoing costs.

“Many people focus on the price of getting the puppy without considering the ongoing costs they’ll face over the next 10 to 15 years,” says Grant Pugh, general manager of insurer CoverMy Pet.

“Responsible pet ownership starts before bringing a puppy home. Along with researching temperament, exercise and suitability, families should factor in unexpected veterinary costs, ongoing healthcare and insurance when comparing breeds.”

On insurance costs specifically, a recent analysis of dogs aged up to five years old conducted by CoverMy Pet found that some of the most popular breeds are also the cheapest to insure.

Border collies and sheepdogs were the least expensive, followed by chihuahuas, labradoodles, Maltese terriers and King Charles spaniels.

“We see these breeds as being lower risk because statistically they have fewer health issues and less likelihood of developing hereditary conditions in the first five years which makes them among the least expensive to insure,” explains Pugh.