When considering growing a family, the costs associated with either adopting a child or using a surrogate can be a major factor in the decision making process. Both options come with significant financial expenses, but is one ultimately less expensive than the other? There are a few key factors to consider when comparing the costs of adoption vs surrogacy.
Upfront Costs
One of the biggest differences between adoption and surrogacy is when the bulk of the costs are due. With adoption, most of the expenses come upfront at the start of the process. This includes costs like:
- Adoption agency fees
- Adoption application fees
- Home study fees
- Parent education and training costs
- Background check and document processing fees
- Immigration documentation fees (for international adoptions)
Many adoption agencies quote total costs between $20,000-$40,000 to complete a domestic infant adoption. International adoptions can sometimes be even more costly depending on the country, ranging from $20,000-$50,000.
With surrogacy, the bulk of the big expenses come after getting matched with a gestational carrier. Costs at the start of the process may include:
- Surrogacy agency fees
- Screening, consultation and matching fees
- IVF clinic administrative fees
- Payments for frozen embryos or egg donation (if needed)
But the biggest surrogacy costs come after getting matched with a gestational carrier, when the IVF process and medical expenses begin. This is when intended parents can expect expenses like:
- IVF retrieval and transfer
- Surrogate compensation
- Surrogate health insurance
- Maternity clothing allowance
- Travel expenses
- Lost wage reimbursement
Overall, surveys show the average cost of surrogacy is $120,000+ when including IVF, agency fees, surrogate compensation, legal fees and other expenses. Of course, costs can vary significantly depending on your specific circumstances.
Adoption Cost Breakdown
To better understand the key costs involved, here is a breakdown of average expenses for the different types of adoption:
Domestic Infant Adoption
- Adoption agency fees: $15,000-$30,000
- Legal fees: $5,000-$10,000
- Birth mother expenses: $5,000-$10,000
- Home study: $2,000-$4,000
- Post-placement visits & supervision: $1,000-$2,000
- Parent education & training: $500-$1,500
- Document processing: $500-$1,500
- Travel expenses: $2,000-$4,000
- Total: $30,000-$60,000+
Foster Care Adoption
- Home study: $0-$2,000
- Parent education & training: $100-$1,000
- Legal representation: $0-$2,000
- Court filing fees: $100-$500
- Document processing: $100-$500
- Total: $1,000-$5,000
International Adoption
- Agency fees: $15,000-$30,000
- Overseas fees: $5,000-$25,000
- Travel expenses: $5,000-$10,000
- Document translation: $500-$2,000
- Visa & immigration: $500-$2,000
- Post-placement supervision: $1,000-$5,000
- Total: $25,000-$70,000+
As you can see, international adoption often costs significantly more than domestic infant adoption. And both private adoption options are much pricier compared to adopting from foster care.
Surrogacy Cost Breakdown
Surrogacy also comes with a complex set of expenses. Here’s an overview of typical surrogacy costs:
- IVF procedures: $15,000-$30,000
- Agency fees: $15,000-$30,000
- Surrogate compensation: $30,000-$50,000
- Surrogate health insurance: $10,000-$15,000
- Maternity clothing: $500-$1,000
- Lost wage reimbursement: $5,000-$10,000
- Travel expenses: $2,000-$5,000
- Legal fees: $10,000-$15,000
- Egg donation (if needed): $15,000-$25,000
- Other medical expenses: $5,000-$10,000
- Total: $110,000-$190,000+
Surrogacy costs often exceed $100,000. It is possible for experienced surrogacy agencies to achieve lower overall rates through discounts. But you should still budget $80,000-$120,000+ to be prepared for all the potential expenses involved.
Key Cost Factors
When estimating the costs of adoption vs surrogacy, there are a few key factors that can significantly impact the total:
- Type of adoption – International adoptions are generally more expensive than domestic infant adoptions, while foster care adoptions cost significantly less.
- Surrogacy expenses – The number of IVF cycles, compensation rate, health insurance expenses and other surrogacy costs can vary.
- Egg donation needs – Needing to pay for an egg donor can add $15,000-$25,000+ to surrogacy costs.
- Insurance coverage – Some employers offer adoption and infertility benefits to partially cover costs.
- Travel expenses – Adoption requires 1-2 trips, while surrogacy may need more for cycles, transfers, delivery, etc.
- Legal representation – Hiring family law attorneys adds to costs for both adoption and surrogacy.
Accounting for these variables, most adoptions end up costing $20,000-$50,000 while surrogacy averages $100,000-$150,000 based on agencies’ reported figures. However, your personal costs could be lower or higher than these ranges depending on your specific circumstances.
Financial Assistance
Given the high costs involved, an obvious question is what financial assistance options exist to help offset the expenses of adoption and surrogacy?
Adoption Assistance
There are several sources prospective adoptive parents can look into for financial help:
- Employer adoption benefits – Some companies offer adoption grants up to $10,000+ as an employee benefit.
- Military subsidies – Active duty military families may qualify for reimbursement of certain adoption costs.
- Adoption grants – Nonprofits and charitable foundations provide adoption grants up to $15,000.
- Adoption loans – Banks and credit unions offer adoption loans at low interest rates.
- Adoption tax credit – Parents can claim up to $14,300 in adoption tax credits per child on their tax return.
Taking advantage of these resources can potentially save adoptive families $10,000-$30,000+ off their total costs. Families adopting from foster care may also qualify for subsidies to cover ongoing expenses until the child turns 18.
Surrogacy Discounts & Financing
There are fewer financial assistance options available for surrogacy. However, some ways intended parents can reduce costs include:
- Package discounts – Agencies may offer discounted rates for bundling IVF, surrogate matching and legal services.
- Insurance discounts – Using the same agency for health insurance and surrogacy services may provide savings.
- Split cycle IVF – Retrieving eggs once but transferring embryos multiple times cuts IVF costs.
- Fertility loans – Banks provide multi-year loans to finance surrogacy and IVF costs over time.
Discounts through agencies and creative financing solutions may save intended parents $5,000-$20,000 overall. Insurance coverage for infertility treatment can also offset some medical expenses for IVF procedures.
Tax Considerations
Claiming tax deductions and credits can recoup part of the costs associated with adoption and surrogacy:
- Adoption tax credit – Provides a credit up to $14,300 per child for qualified adoption expenses.
- Surrogacy tax deduction – Medical expenses related to surrogacy may be tax deductible if they exceed 7.5% of adjusted gross income.
- Egg donor deduction – Egg donor fees can qualify as deductible medical expenses under certain criteria.
- Child tax credit – Families can claim up to $2,000 per child under 17 as a tax credit after adoption or birth.
Intended parents should consult a tax professional to understand how to best utilize these tax benefits. While they won’t cover the full costs, tax credits and deductions could potentially save families thousands per child.
Examples & Scenarios
To illustrate the differences in cost between adoption vs surrogacy, here are some examples of total estimated expenses in different scenarios:
Domestic Infant Adoption
- Agency fees: $20,000
- Legal representation: $7,500
- Birth mother expenses: $7,500
- Home study: $3,000
- Travel costs: $3,500
- Total: $41,500
International Adoption from China
- Agency fees: $25,000
- Overseas expenses: $15,000
- Travel/accommodations: $7,500
- Document translation: $1,500
- Post-placement fees: $3,000
- Total: $52,000
Surrogacy with Egg Donation
- IVF costs: $25,000
- Surrogacy agency: $25,000
- Egg donor compensation: $10,000
- Surrogate compensation: $35,000
- Insurance premiums: $12,000
- Legal fees: $12,000
- Total: $119,000
These scenarios illustrate how surrogacy costs can easily reach $100,000+, while most adoptions range from $20,000-$50,000 based on the type. However, costs vary widely for both adoption and surrogacy depending on individual factors.
Comparison Summary
To summarize the key differences in costs between adoption and surrogacy:
| Adoption | Surrogacy | |
|---|---|---|
| Average total cost | $20,000-$50,000 | $100,000-$150,000 |
| Biggest upfront expenses | Agency fees, legal fees | IVF, agency fees |
| Significant variable costs | Type of adoption | IVF cycles, egg donation needs |
| Average length of process | 1-3 years | 1-2 years |
| Tax benefits available | Adoption tax credit | Medical expense deduction |
While adoption is often more affordable upfront, the overall costs are highly variable depending on the type of adoption. Surrogacy requires much greater upfront investment for IVF and agency fees, but costs are more consistent. Prospective parents should carefully weigh the costs and tax benefits for each path to make the best decision for their family.
Limitations & Considerations
When comparing the financial costs of adoption vs surrogacy, it’s important to note some limitations:
- Individual costs vary significantly based on circumstances.
- Expenses change frequently as agencies and laws adjust fees.
- International adoption costs fluctuate based on country-specific regulation.
- Timelines for completing adoption or surrogacy impact length of payment period.
- There are also significant emotional considerations beyond just financial costs.
- Families should consult with licensed professionals to understand total costs.
Adoption and surrogacy costs presented are based on averages and estimates. Individual experiences may be higher or lower. Prospective parents should conduct thorough research and consult agencies to project expenses for their specific situation.
Conclusion
Deciding between adoption vs surrogacy involves weighing many complex emotional and financial factors. While surrogacy is often portrayed as the more expensive option, adoption can also reach costs over $50,000 for private infant or international adoptions. Tax benefits and financial assistance can offset some expenses for adoption, but intended parents typically pay the bulk of surrogacy costs out-of-pocket.
Ultimately, the “best” option depends on each family’s specific needs and circumstances. There is no universally affordable path to building a family. Prospective parents should carefully analyze the pros and cons of each method and consult licensed professionals to make the decision that fits their budget and desires.