# Value of 1962 US Dollars today

\$100 in 1962

\$857.94 in 2020

The inflation rate in the United States between 1962 and today has been 757.94%, which translates into a total increase of \$757.94. This means that 100 dollars in 1962 are equivalent to 857.94 dollars in 2020. In other words, the purchasing power of \$100 in 1962 equals \$857.94 today. The average annual inflation rate has been 3.71%.

## Inflation timeline in the United States (1962-2020)

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 (1962-2020) 756.58%
Total Inflation* 757.94%
Annual inflation avg. (1962-2020) 3.77%
Annual inflation avg.* 3.71%
CPI 1962 12.66
CPI 2020 108.42
CPI today* 108.59
\$1 in 1962 \$8.57 in 2020

* 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 with 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 58 years between 1962 and 2020 and the average inflation rate has been 3.7102%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)58 = \$856.58

#### 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 1962 was 12.66 and the CPI today is 108.59. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.42/12.66
= \$856.58

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1962 \$8.58 dollars today
\$5 dollars in 1962 \$42.9 dollars today
\$10 dollars in 1962 \$85.79 dollars today
\$50 dollars in 1962 \$428.97 dollars today
\$100 dollars in 1962 \$857.94 dollars today
\$500 dollars in 1962 \$4,289.7 dollars today
\$1,000 dollars in 1962 \$8,579.4 dollars today
\$5,000 dollars in 1962 \$42,896.98 dollars today
\$10,000 dollars in 1962 \$85,793.95 dollars today
\$50,000 dollars in 1962 \$428,969.77 dollars today
\$100,000 dollars in 1962 \$857,939.53 dollars today
\$500,000 dollars in 1962 \$4,289,697.67 dollars today
\$1,000,000 dollars in 1962 \$8,579,395.33 dollars today

Period Value
1962 100
1963 101.33
1964 103
1965 104
1966 106
1967 109.67
1968 113
1969 118.33
1970 125.67
1971 132.67
1972 137
1973 141.67
1974 154
1975 173
1976 185
1977 194
1978 207
1979 225.67
1980 255.67
1981 287.67
1982 313.33
1983 325.33
1984 337.67
1985 351
1986 364.33
1987 368.33
1988 384.67
1989 401.67
1990 420.33
1991 446
1992 459.67
1993 473
1994 486
1995 499
1996 511.67
1997 528.67
1998 537.67
1999 546.33
2000 561
2001 580
2002 589
2003 603
2004 614.33
2005 634.33
2006 656
2007 672.67
2008 700.12
2009 700.76
2010 719.83
2011 730.6
2012 752.24
2013 765.34
2014 776.83
2015 782.71
2016 788.42
2017 804.77
2018 821.75
2019 837.44
2020 856.58
Today 857.94