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# Inflation calculator - US Dollar

This tool is useful to calculate the time value of money based on historical inflation and CPI values. To start, select an amount and two years, or browse the default calculation results.

\$100 in 1956
\$996.82 in 2021

The inflation rate in the United States between 1956 and 2021 was 896.82%, which translates into a total increase of \$896.82. This means that 100 dollars in 1956 are equivalent to 996.82 dollars in 2021. In other words, the purchasing power of \$100 in 1956 equals \$996.82 in 2021. The average annual inflation rate between these periods was 3.6%.

## Inflation timeline in the United States (1956 - 2021)

The following chart depicts the equivalence of \$100 due to compound inflation and CPI changes. All values are equivalent in terms of purchasing power, which means that for each year the same goods or services could be bought with the indicated amount of money.

All calculations are performed in the local currency (USD) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability. Inflation data is provided by governments and international institutions on a monthly basis.

The following table contains relevant indicators:

Indicator Value
Cumulative inflation from 1956 to 2021 896.82%
Avg. Annual inflation from 1956 to 2021 3.6%
CPI 1956 11.47
CPI 2021 114.33

## How to calculate the time value of money with inflation data?

There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the Consumer Price Index (CPI) formula or the compound interest formula.

### Using the CPI formula

When we have both the start and end years, we can use the following formula:

Valuet =Value0 ×
CPIt/CPI0

To obtain the values equivalent in buying power between 1956 and 2021, use the corresponding CPI values:

Value2021
=Value1956 ×
CPI2021/CPI1956
=\$ 100 ×
114.33/11.47
\$996.82

### Alternative: Using the compound interest formula

Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: FV = PV × (1 + i)n, where:

• FV: Future Value
• PV: Present Value
• i: Interest rate (inflation)
• n: Number of times the interest is compounded (i.e. # of years)

In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much are \$100 worth today. There are 65 years between 1956 and 2021 and the average inflation rate was 3.6009%. Therefore, we can resolve the formula like this:

Value2021
=PV × (1 + i)n
=\$100 × (1 + 0.036009)65
\$996.82

## US inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1956 \$9.97 dollars in 2021
\$5 dollars in 1956 \$49.84 dollars in 2021
\$10 dollars in 1956 \$99.68 dollars in 2021
\$50 dollars in 1956 \$498.41 dollars in 2021
\$100 dollars in 1956 \$996.82 dollars in 2021
\$500 dollars in 1956 \$4,984.11 dollars in 2021
\$1,000 dollars in 1956 \$9,968.23 dollars in 2021
\$5,000 dollars in 1956 \$49,841.14 dollars in 2021
\$10,000 dollars in 1956 \$99,682.27 dollars in 2021
\$50,000 dollars in 1956 \$498,411.36 dollars in 2021
\$100,000 dollars in 1956 \$996,822.72 dollars in 2021
\$500,000 dollars in 1956 \$4,984,113.61 dollars in 2021
\$1,000,000 dollars in 1956 \$9,968,227.23 dollars in 2021
 Cumulative inflation 1956-2021 896.82% Avg. annual inflation 1956-2021 3.6% CPI 1956 11.47 CPI 2021 114.33

### Value of Dollar over time (by year)

Period Value
1956 100
1957 103.34
1958 106.16
1959 107.23
1960 108.8
1961 109.96
1962 111.28
1963 112.66
1964 114.1
1965 115.91
1966 119.41
1967 122.72
1968 127.96
1969 134.95
1970 142.83
1971 148.96
1972 153.83
1973 163.34
1974 181.39
1975 197.98
1976 209.35
1977 222.96
1978 239.98
1979 266.98
1980 303.16
1981 334.49
1982 355
1983 366.4
1984 382.16
1985 395.71
1986 403.22
1987 418
1988 435.04
1989 456.04
1990 480.66
1991 501.01
1992 516.19
1993 531.42
1994 545.28
1995 560.58
1996 577.01
1997 590.5
1998 599.66
1999 612.78
2000 633.48
2001 651.38
2002 661.71
2003 676.73
2004 694.85
2005 718.42
2006 741.6
2007 762.76
2008 792.04
2009 789.22
2010 802.17
2011 827.49
2012 844.61
2013 856.98
2014 870.89
2015 871.92
2016 882.92
2017 901.73
2018 923.75
2019 940.49
2020 952.09
2021 996.82

All available years

Today's value of US dollars by year:

1956 | 1957 | 1958 | 1959 | 1960 | 1961 | 1962 | 1963 | 1964 | 1965 | 1966 | 1967 | 1968 | 1969 | 1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |

Other currencies: