# Value of 1965 US Dollars today

\$100 in 1965

\$824.94 in 2020

The inflation rate in the United States between 1965 and today has been 724.94%, which translates into a total increase of \$724.94. This means that 100 dollars in 1965 are equivalent to 824.94 dollars in 2020. In other words, the purchasing power of \$100 in 1965 equals \$824.94 today. The average annual inflation rate has been 3.84%.

## Inflation timeline in the United States (1965-2020)

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 (1965-2020) 723.64%
Total Inflation* 724.94%
Annual inflation avg. (1965-2020) 3.91%
Annual inflation avg.* 3.84%
CPI 1965 13.16
CPI 2020 108.42
CPI today* 108.59
\$1 in 1965 \$8.24 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 55 years between 1965 and 2020 and the average inflation rate has been 3.84%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)55 = \$823.64

#### 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 1965 was 13.16 and the CPI today is 108.59. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.42/13.16
= \$823.64

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1965 \$8.25 dollars today
\$5 dollars in 1965 \$41.25 dollars today
\$10 dollars in 1965 \$82.49 dollars today
\$50 dollars in 1965 \$412.47 dollars today
\$100 dollars in 1965 \$824.94 dollars today
\$500 dollars in 1965 \$4,124.71 dollars today
\$1,000 dollars in 1965 \$8,249.42 dollars today
\$5,000 dollars in 1965 \$41,247.1 dollars today
\$10,000 dollars in 1965 \$82,494.2 dollars today
\$50,000 dollars in 1965 \$412,471.02 dollars today
\$100,000 dollars in 1965 \$824,942.03 dollars today
\$500,000 dollars in 1965 \$4,124,710.17 dollars today
\$1,000,000 dollars in 1965 \$8,249,420.34 dollars today

Period Value
1965 100
1966 101.92
1967 105.45
1968 108.65
1969 113.78
1970 120.83
1971 127.56
1972 131.73
1973 136.22
1974 148.08
1975 166.35
1976 177.88
1977 186.54
1978 199.04
1979 216.99
1980 245.83
1981 276.6
1982 301.28
1983 312.82
1984 324.68
1985 337.5
1986 350.32
1987 354.17
1988 369.87
1989 386.22
1990 404.17
1991 428.85
1992 441.99
1993 454.81
1994 467.31
1995 479.81
1996 491.99
1997 508.33
1998 516.99
1999 525.32
2000 539.42
2001 557.69
2002 566.35
2003 579.81
2004 590.71
2005 609.94
2006 630.77
2007 646.79
2008 673.19
2009 673.81
2010 692.14
2011 702.5
2012 723.31
2013 735.9
2014 746.95
2015 752.6
2016 758.09
2017 773.82
2018 790.14
2019 805.23
2020 823.64
Today 824.94