# Value of 1962 US Dollars today

\$7,500 in 1962

\$64,349.54 in 2020

The inflation rate in the United States between 1962 and today has been 757.99%, which translates into a total increase of \$56,849.54. This means that 7,500 dollars in 1962 are equivalent to 64,349.54 dollars in 2020. In other words, the purchasing power of \$7,500 in 1962 equals \$64,349.54 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 \$7,500 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* 757.99%
Annual inflation avg. (1962-2020) 3.77%
Annual inflation avg.* 3.71%
CPI 1962 12.66
CPI 2020 108.42
CPI today* 108.6
\$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 \$7,500 worth today. There are 58 years between 1962 and 2020 and the average inflation rate has been 3.7103%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$7500 * (1 + 0.04)58 = \$64,243.52

#### 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 108.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$7,500 *
108.42/12.66
= \$64,243.52

### 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 \$85.8 dollars today
\$50 dollars in 1962 \$429 dollars today
\$100 dollars in 1962 \$857.99 dollars today
\$500 dollars in 1962 \$4,289.97 dollars today
\$1,000 dollars in 1962 \$8,579.94 dollars today
\$5,000 dollars in 1962 \$42,899.7 dollars today
\$10,000 dollars in 1962 \$85,799.39 dollars today
\$50,000 dollars in 1962 \$428,996.95 dollars today
\$100,000 dollars in 1962 \$857,993.91 dollars today
\$500,000 dollars in 1962 \$4,289,969.53 dollars today
\$1,000,000 dollars in 1962 \$8,579,939.06 dollars today

Period Value
1962 7,500
1963 7,600
1964 7,725
1965 7,800
1966 7,950
1967 8,225
1968 8,475
1969 8,875
1970 9,425
1971 9,950
1972 10,275
1973 10,625
1974 11,550
1975 12,975
1976 13,875
1977 14,550
1978 15,525
1979 16,925
1980 19,175
1981 21,575
1982 23,500
1983 24,400
1984 25,325
1985 26,325
1986 27,325
1987 27,625
1988 28,850
1989 30,125
1990 31,525
1991 33,450
1992 34,475
1993 35,475
1994 36,450
1995 37,425
1996 38,375
1997 39,650
1998 40,325
1999 40,975
2000 42,075
2001 43,500
2002 44,175
2003 45,225
2004 46,075
2005 47,575
2006 49,200
2007 50,450
2008 52,508.99
2009 52,557
2010 53,987.25
2011 54,794.75
2012 56,418
2013 57,400.25
2014 58,262.25
2015 58,703
2016 59,131.25
2017 60,357.98
2018 61,631
2019 62,808.26
2020 64,243.52
Today 64,349.54