# 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

\$937.44 in 2019

The inflation rate in the United States between 1956 and 2019 was 837.44%, which translates into a total increase of \$837.44. This means that 100 dollars in 1956 are equivalent to 937.44 dollars in 2019. In other words, the purchasing power of \$100 in 1956 equals \$937.44 in 2019. The average annual inflation rate between these periods was 3.62%.

## Inflation timeline in the United States (1956 - 2019)

The following chart depicts the equivalence of US dollars throughout the years 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.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1956-2019) 837.44%
Annual inflation avg. (1956-2019) 3.62%
CPI 1956 11.31
CPI 2019 106
\$1 in 1956 \$9.37 in 2019

## 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 compound interest formula or the Consumer Price Index (CPI) formula.

#### Using the compound interest formula

Given that money changes in time as a result of an inflation rate that acts as a compound interest, the following formula can be used: 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, the future value is the amount in 2019 that equals \$100 in 1956 in terms of purchasing power. There are 63 years between 1956 and 2019 and the average inflation rate was 3.6162%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.036162)63 = \$937.436379 ≈ \$937.44

#### Using the CPI formula

When the CPI for both start and end years is known, the following formula can be used:

Final value = Initial value *
CPI final/CPI initial

In this case, the CPI in 1956 was 11.31 and in 2019 was 106. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
106/11.31
= \$937.44

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1956 \$9.37 dollars in 2019
\$5 dollars in 1956 \$46.87 dollars in 2019
\$10 dollars in 1956 \$93.74 dollars in 2019
\$50 dollars in 1956 \$468.72 dollars in 2019
\$100 dollars in 1956 \$937.44 dollars in 2019
\$500 dollars in 1956 \$4,687.18 dollars in 2019
\$1,000 dollars in 1956 \$9,374.36 dollars in 2019
\$5,000 dollars in 1956 \$46,871.82 dollars in 2019
\$10,000 dollars in 1956 \$93,743.64 dollars in 2019
\$50,000 dollars in 1956 \$468,718.19 dollars in 2019
\$100,000 dollars in 1956 \$937,436.38 dollars in 2019
\$500,000 dollars in 1956 \$4,687,181.9 dollars in 2019
\$1,000,000 dollars in 1956 \$9,374,363.79 dollars in 2019

Period Value
1956 100
1957 102.98
1958 105.97
1959 107.84
1960 109.7
1961 111.19
1962 111.94
1963 113.43
1964 115.3
1965 116.42
1966 118.66
1967 122.76
1968 126.49
1969 132.46
1970 140.67
1971 148.51
1972 153.36
1973 158.58
1974 172.39
1975 193.66
1976 207.09
1977 217.16
1978 231.72
1979 252.61
1980 286.19
1981 322.01
1982 350.75
1983 364.18
1984 377.98
1985 392.91
1986 407.84
1987 412.31
1988 430.6
1989 449.63
1990 470.52
1991 499.25
1992 514.55
1993 529.48
1994 544.03
1995 558.58
1996 572.76
1997 591.79
1998 601.87
1999 611.57
2000 627.98
2001 649.25
2002 659.33
2003 675
2004 687.69
2005 710.07
2006 734.33
2007 752.98
2008 783.72
2009 784.43
2010 805.78
2011 817.83
2012 842.06
2013 856.72
2014 869.59
2015 876.16
2016 882.56
2017 900.87
2018 919.87
2019 937.44