The Grading Scale: 1-70

Professional grading services (PMG and PCGS) use a standardized numerical grading scale from 1 to 70. This scale allows collectors and dealers to communicate about note condition using consistent terminology and remove subjectivity from condition assessment.

The Complete Grading Scale

Poor (1-2): Barely Identifiable

P-1 – The note is in such poor condition that it's barely recognizable as currency. It might be:

Heavily damaged, stained, or torn
Partially deteriorated
So worn that fine details are impossible to discern

P-1 notes have minimal collector value—usually face value only (or less if unspendable).

Fair (2-3): Heavily Worn but Identifiable

FR-2 (Fair) and AG-3 (About Good) – The note is still identifiable as legal currency but very heavily worn:

Major design elements are visible but heavily worn
Tears, stains, and creases are apparent
Large worn areas where design is barely visible
Serial numbers may be barely readable

Good (4-6): Heavily Worn

G-4, G-6 (Good) – Heavily circulated but all major design elements are clearly visible:

Moderate to heavy wear throughout
All design elements identifiable
Substantial staining or discoloration possible
Folds and creases visible
Serial numbers readable but worn

Very Good (8-10): Heavily Circulated

VG-8, VG-10 (Very Good) – Heavy circulation wear but the note maintains its essential character:

All major design elements visible and identifiable
Design details somewhat flattened from wear
Edges worn and rounded
Color may be slightly faded
Some soiling or stains present

Fine (12-15): Moderate Wear

F-12, F-15 (Fine) – Worn from circulation but all details remain visible:

Design shows moderate wear
Key features (portrait, numerals, text) clear and sharp
Folds may be visible but fewer than VG-10
Color mostly intact
Generally clean appearance with minimal staining

Very Fine (20-35): Light to Moderate Wear

VF-20, VF-25, VF-35 (Very Fine) – Light to moderate circulation wear. Design details are quite sharp:

Design elements show light wear at high points
Portrait and detail work is sharp
Color is bright
Minimal stains or damage
Much of the note's original appearance remains
VF-20: Light wear, some minor staining possible
VF-25: Slightly less wear than VF-20
VF-35: Minimal wear, very clean appearance

Extremely Fine (40-45): Light Wear

EF-40, EF-45 (Extremely Fine) – Light wear visible only on high points; most of the note appears nearly new:

Only slight wear on portrait and highest relief points
Color bright and fresh
No significant stains or damage
Minor handling wrinkles may be visible
The note looks nearly as-issued but with evidence of light handling

About Uncirculated (50-58): Barely Circulated

AU-50, AU-55, AU-58 (About Uncirculated) – The note has been in circulation only briefly; it looks nearly as-issued:

Very light wear visible only on the highest points
Bright, original color
No stains or damage
The note could almost be mistaken for uncirculated
AU-50: Slight wear visible with close examination
AU-55: Light wear barely visible
AU-58: Very minimal wear, nearly uncirculated appearance

Mint State (60-70): Uncirculated

MS-60 through MS-70 (Mint State) – The note has never been in circulation. It's as-issued or better:

MS-60: Uncirculated but with evidence of handling (slight pressing, minor surface marks)
MS-62, MS-63: Uncirculated, light handling marks, good eye appeal
MS-64, MS-65: Uncirculated, minimal handling marks, excellent eye appeal
MS-66, MS-67: Uncirculated, pristine, exceptional appearance
MS-68, MS-69: Superb gem, virtually flawless
MS-70: Perfect (theoretical perfection, extremely rare)

The EPQ/PPQ Designation

When grading notes in Mint State condition, PMG and PCGS may add:

EPQ (Exceptional Paper Quality) – The note has original surfaces, no repairs, and exceptional eye appeal
PPQ (Premium Paper Quality) – Similar to EPQ, used by some graders

An MS-65 EPQ note is worth more than an MS-65 without the EPQ designation because it indicates the note's exceptional appearance and originality.

Important Notes About Grading

Grades Are Subjective Within Ranges

While the scale is standardized, some subjectivity exists. Two professional graders might grade the same note as MS-64 and MS-65—both are professional opinions within a reasonable range. The grade isn't an absolute truth but rather an expert assessment.

Eye Appeal Matters

A note graded MS-65 might be worth more or less than another MS-65 depending on:

Color quality (original color vs. faded or toned)
Centering (is the design centered or off-center?)
Attractiveness of toning (some toning is attractive; some is unattractive)

Grade Inflation Is a Concern

Some graders or sellers may assign grades that are too high (grade inflation). Professional graders (PMG and PCGS) maintain strict standards to prevent this, but independent assessments from dealers might not be as rigorous.