# Value of 1974 US Dollars today

\$100 in 1974

\$557.21 in 2020

The inflation rate in the United States between 1974 and today has been 457.21%, which translates into a total increase of \$457.21. This means that 100 dollars in 1974 are equivalent to 557.21 dollars in 2020. In other words, the purchasing power of \$100 in 1974 equals \$557.21 today. The average annual inflation rate has been 3.72%.

## Inflation timeline in the United States (1974-2020)

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 (1974-2020) 456.22%
Total Inflation* 457.21%
Annual inflation avg. (1974-2020) 3.8%
Annual inflation avg.* 3.72%
CPI 1974 19.49
CPI 2020 108.42
CPI today* 108.61
\$1 in 1974 \$5.56 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 46 years between 1974 and 2020 and the average inflation rate has been 3.7224%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)46 = \$556.22

#### 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 1974 was 19.49 and the CPI today is 108.61. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.42/19.49
= \$556.22

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1974 \$5.57 dollars today
\$5 dollars in 1974 \$27.86 dollars today
\$10 dollars in 1974 \$55.72 dollars today
\$50 dollars in 1974 \$278.6 dollars today
\$100 dollars in 1974 \$557.21 dollars today
\$500 dollars in 1974 \$2,786.05 dollars today
\$1,000 dollars in 1974 \$5,572.1 dollars today
\$5,000 dollars in 1974 \$27,860.48 dollars today
\$10,000 dollars in 1974 \$55,720.96 dollars today
\$50,000 dollars in 1974 \$278,604.8 dollars today
\$100,000 dollars in 1974 \$557,209.59 dollars today
\$500,000 dollars in 1974 \$2,786,047.97 dollars today
\$1,000,000 dollars in 1974 \$5,572,095.93 dollars today

Period Value
1974 100
1975 112.34
1976 120.13
1977 125.97
1978 134.42
1979 146.54
1980 166.02
1981 186.8
1982 203.46
1983 211.26
1984 219.26
1985 227.92
1986 236.58
1987 239.18
1988 249.78
1989 260.82
1990 272.94
1991 289.61
1992 298.48
1993 307.14
1994 315.58
1995 324.03
1996 332.25
1997 343.29
1998 349.13
1999 354.76
2000 364.29
2001 376.62
2002 382.47
2003 391.56
2004 398.92
2005 411.9
2006 425.97
2007 436.8
2008 454.62
2009 455.04
2010 467.42
2011 474.41
2012 488.47
2013 496.97
2014 504.44
2015 508.25
2016 511.96
2017 522.58
2018 533.6
2019 543.79
2020 556.22
Today 557.21