# Value of 1971 US Dollars today

\$100 in 1971

\$654.9 in 2021

The inflation rate in the United States between 1971 and today has been 554.9%, which translates into a total increase of \$554.9. This means that 100 dollars in 1971 are equivalent to 654.9 dollars in 2021. In other words, the purchasing power of \$100 in 1971 equals \$654.9 today. The average annual inflation rate has been 3.75%.

## Inflation timeline in the United States (1971-2021)

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 (1971-2021) 554.46%
Total Inflation* 554.9%
Annual inflation avg. (1971-2021) 3.83%
Annual inflation avg.* 3.75%
CPI 1971 16.79
CPI 2021 109.9
CPI today* 109.97
\$1 in 1971 \$6.54 in 2021

* 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 50 years between 1971 and 2021 and the average inflation rate has been 3.7537%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)50 = \$654.46

#### 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 1971 was 16.79 and the CPI today is 109.97. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
109.9/16.79
= \$654.46

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1971 \$6.55 dollars today
\$5 dollars in 1971 \$32.75 dollars today
\$10 dollars in 1971 \$65.49 dollars today
\$50 dollars in 1971 \$327.45 dollars today
\$100 dollars in 1971 \$654.9 dollars today
\$500 dollars in 1971 \$3,274.52 dollars today
\$1,000 dollars in 1971 \$6,549.03 dollars today
\$5,000 dollars in 1971 \$32,745.17 dollars today
\$10,000 dollars in 1971 \$65,490.34 dollars today
\$50,000 dollars in 1971 \$327,451.7 dollars today
\$100,000 dollars in 1971 \$654,903.4 dollars today
\$500,000 dollars in 1971 \$3,274,516.99 dollars today
\$1,000,000 dollars in 1971 \$6,549,033.99 dollars today

Period Value
1971 100
1972 103.27
1973 106.78
1974 116.08
1975 130.4
1976 139.45
1977 146.23
1978 156.03
1979 170.1
1980 192.71
1981 216.83
1982 236.18
1983 245.23
1984 254.52
1985 264.57
1986 274.62
1987 277.64
1988 289.95
1989 302.76
1990 316.83
1991 336.18
1992 346.48
1993 356.53
1994 366.33
1995 376.13
1996 385.68
1997 398.49
1998 405.28
1999 411.81
2000 422.86
2001 437.19
2002 443.97
2003 454.52
2004 463.07
2005 478.14
2006 494.47
2007 507.04
2008 527.73
2009 528.21
2010 542.59
2011 550.7
2012 567.02
2013 576.89
2014 585.55
2015 589.98
2016 594.28
2017 606.61
2018 619.41
2019 631.24
2020 645.66
2021 654.46
Today 654.9