The Economics of the Eiffel Tower

Financial Analysis

The Eiffel Tower cost approximately 7.8 million francs to build in 1889, equivalent to over $80 million today. While initially controversial and intended as a temporary structure, it quickly became profitable, with Gustave Eiffel recouping all construction costs within six months through entry fees and concessions (Silveria 2024).

Funding

The Eiffel Tower was funded through a combination of private and public investments. To spread the risks of the operation, a total of three banks came together to sign the final contract with Eiffel. Roughly 18% of the budget was funded by the government and banks, leaving Gustave Eiffel to find funding for the remaining 80% of the cost. (The Eiffel Tower 2022; Silveira 2024).

The Economy

France was experiencing a period of economic growth and modernization during the construction of the Eiffel Tower. France was preparing for the centennial of the French Revolution, in which this event spurred significant investments into the construction. This period was marked by industrial expansion, urbanization, and great innovation (Silveria 2024).

Cost Breakdown

Foundation & Infrastructure: 666,080.52 francs

Foundations and Masonry: 493,373.48 francs
Foundations: 147,054.14 francs
Additional Masonry: 25,652.90 francs

Labor and Misc: 956,554.99 francs

The remaining cost comes from miscellaneous items such as further labor costs, paint, small installations, more improvements and amenities, and future operation costs.

Supply and Assembly of Superstructure: 5,769,669.46 francs

Clogs and Supports: 35,046.56 francs
Irons and Fonts: 3,000,676.56 francs
Montage: 847,399.00 francs
Mechanical Parts: 1,153,145.91 francs
Platforms: 607,828.61 francs
Paintings: 125,572.82 francs

(Landmarks 1989)

The initial budget for the Eiffel Tower was 8 million francs. The construction cost at completion was 7.8 million francs or $1,495,139.89. In less than a year after completion, the Eiffel Tower already made up the debt from the profits accrued from entry tickets and restaurant concessions (Silveira 2024).

A section of the cost breakdown from the Eiffel Tower.

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