# Value of 1960 US Dollars today

\$100 in 1960

\$854.81 in 2019

The inflation rate in the United States between 1960 and today has been 754.81%, which translates into a total increase of \$754.81. This means that 100 dollars in 1960 are equivalent to 854.81 dollars in 2019. In other words, the purchasing power of \$100 in 1960 equals \$854.81 today. The average annual inflation rate has been 3.64%.

## Inflation timeline in the United States (1960-2019)

The following chart depicts the equivalence of \$100 throughout the years due to 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. Today's values were obtained by estimating figures from recent trends.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1960-2019) 754.53%
Total Inflation* 754.81%
Annual inflation avg. (1960-2019) 3.7%
Annual inflation avg.* 3.64%
CPI 1960 12.4
CPI 2019 106
CPI today* 106.03
\$1 in 1960 \$8.55 in 2019

* Values extrapolated from the last official data to obtain today's values.

## How to calculate today's value of money after inflation?

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, it indicates how much are \$100 worth today. There are 59 years between 1960 and 2019 and the average inflation rate has been 3.6409%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)59 = \$854.53

#### 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 1960 was 12.4 and the CPI today is 106.03. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
106/12.4
= \$854.53

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1960 \$8.55 dollars today
\$5 dollars in 1960 \$42.74 dollars today
\$10 dollars in 1960 \$85.48 dollars today
\$50 dollars in 1960 \$427.4 dollars today
\$100 dollars in 1960 \$854.81 dollars today
\$500 dollars in 1960 \$4,274.03 dollars today
\$1,000 dollars in 1960 \$8,548.06 dollars today
\$5,000 dollars in 1960 \$42,740.32 dollars today
\$10,000 dollars in 1960 \$85,480.65 dollars today
\$50,000 dollars in 1960 \$427,403.23 dollars today
\$100,000 dollars in 1960 \$854,806.46 dollars today
\$500,000 dollars in 1960 \$4,274,032.28 dollars today
\$1,000,000 dollars in 1960 \$8,548,064.55 dollars today

Period Value
1960 100
1961 101.36
1962 102.04
1963 103.4
1964 105.1
1965 106.12
1966 108.16
1967 111.9
1968 115.31
1969 120.75
1970 128.23
1971 135.37
1972 139.8
1973 144.56
1974 157.14
1975 176.53
1976 188.78
1977 197.96
1978 211.22
1979 230.27
1980 260.88
1981 293.54
1982 319.73
1983 331.97
1984 344.56
1985 358.16
1986 371.77
1987 375.85
1988 392.52
1989 409.86
1990 428.91
1991 455.1
1992 469.05
1993 482.65
1994 495.92
1995 509.18
1996 522.11
1997 539.46
1998 548.64
1999 557.48
2000 572.45
2001 591.84
2002 601.02
2003 615.31
2004 626.87
2005 647.28
2006 669.39
2007 686.39
2008 714.41
2009 715.06
2010 734.52
2011 745.51
2012 767.59
2013 780.96
2014 792.68
2015 798.68
2016 804.51
2017 821.2
2018 838.52
2019 854.53
Today 854.81