How Banknote Grading Works
Currency grading uses a 70-point numeric scale borrowed from coin grading, paired with traditional descriptive names. Every price you see quoted assumes a grade, and misjudging your note by two grades can mean misjudging its value by half.
The scale is about wear, handling, and eye appeal, not age. A note from 1899 can be gem uncirculated and a note from last year can be poor.
Quick facts
- Scale
- 1 to 70, higher is better
- Uncirculated threshold
- 60 and above, no folds of any kind
- Main graders
- PMG and PCGS Banknote
- EPQ or PPQ
- Designation meaning the paper is original and untreated
- Biggest value jump
- Between about uncirculated and true uncirculated
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Point your camera at a bill and get the series, type, rarity, and an estimated value range in seconds. No typing, no guessing at the series letter.
- Reads the series, seal type, and signatures from a photo
- Flags star notes and collectible serial number patterns
- Estimates a value range by condition
- Works on US and world banknotes
The circulated grades
Poor (1) through Fair (2) means the note is barely intact: heavy damage, pieces missing, sometimes taped. Good (4) and Very Good (8) mean complete but heavily worn, with soft limp paper, rounded corners, and many folds.
Fine (12) shows considerable circulation but retains some crispness and readable detail. Very Fine (20 to 35) is a note with several folds that still has body and clean paper. Extremely Fine (40 to 45) has three light folds at most and is close to new in appearance.
About Uncirculated (50 to 58) means one light fold or a counting crease and nothing else. This is where most people overestimate their notes, because an AU note looks new until you tilt it to the light.
The uncirculated grades
Uncirculated starts at 60. A note at this level has never been folded, but it may have handling marks, poor centering, or minor corner issues. 63 is Choice Uncirculated, 65 is Gem, and 67 and above are Superb.
Above 65 the grade is driven almost entirely by centering and margins. A perfectly preserved note that was cut slightly off center will cap out at 64 or 65 no matter how clean it is. That is why two notes described as uncirculated can differ enormously in price.
EPQ, PPQ, and net grades
PMG uses EPQ (Exceptional Paper Quality) and PCGS uses PPQ (Premium Paper Quality) to indicate the paper is original and has not been washed, pressed, or chemically treated. A note without that designation sells at a discount even at the same numeric grade.
Notes with problems receive a net grade or a qualifier: repaired, restored, trimmed, stained, or with tears noted. Any of those cuts value substantially, often by half or more.
How to grade your own note
Hold the note flat and tilt it against a light source at a shallow angle. Folds show as lines regardless of how well the note was pressed afterwards. Count them.
Then check the corners for rounding, the edges for nicks and splits, the paper for limpness, and the surface for stains or writing. Finally check the centering: measure the margin on all four sides and see how even they are.
Before you do anything else
- Grade against a light, not under one. Reflected light at an angle reveals folds that direct light hides.
- Never press or iron a note to improve its appearance. Graders detect it and the note is downgraded and labeled.
- If a note might grade 64 or higher and is worth more than a few hundred dollars, professional grading usually pays for itself.
- Buy the note, not the holder, but for expensive notes the holder is what makes the sale.
Frequently asked questions
What does uncirculated mean for a banknote?
The note has never been folded or circulated. It may still have handling marks or imperfect centering, but no folds of any kind. Uncirculated begins at grade 60 on the 70-point scale.
Is it worth getting a banknote professionally graded?
Generally yes if the note is likely to grade 64 or above and is worth several hundred dollars or more, or if it is an error note where authenticity matters. For common notes worth under a hundred dollars the fee usually exceeds the benefit.
What does EPQ mean on a graded note?
Exceptional Paper Quality, PMG's designation that the paper is original and has not been washed, pressed, or chemically treated. It adds meaningful value at any numeric grade.