# Value of 1983 US Dollars today

\$100 in 1983

\$263.73 in 2020

The inflation rate in the United States between 1983 and today has been 163.73%, which translates into a total increase of \$163.73. This means that 100 dollars in 1983 are equivalent to 263.73 dollars in 2020. In other words, the purchasing power of \$100 in 1983 equals \$263.73 today. The average annual inflation rate has been 2.58%.

## Inflation timeline in the United States (1983-2020)

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 (1983-2020) 163.29%
Total Inflation* 163.73%
Annual inflation avg. (1983-2020) 2.65%
Annual inflation avg.* 2.58%
CPI 1983 41.18
CPI 2020 108.42
CPI today* 108.6
\$1 in 1983 \$2.63 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 37 years between 1983 and 2020 and the average inflation rate has been 2.5848%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.03)37 = \$263.29

#### 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 1983 was 41.18 and the CPI today is 108.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.42/41.18
= \$263.29

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1983 \$2.64 dollars today
\$5 dollars in 1983 \$13.19 dollars today
\$10 dollars in 1983 \$26.37 dollars today
\$50 dollars in 1983 \$131.86 dollars today
\$100 dollars in 1983 \$263.73 dollars today
\$500 dollars in 1983 \$1,318.64 dollars today
\$1,000 dollars in 1983 \$2,637.28 dollars today
\$5,000 dollars in 1983 \$13,186.38 dollars today
\$10,000 dollars in 1983 \$26,372.76 dollars today
\$50,000 dollars in 1983 \$131,863.82 dollars today
\$100,000 dollars in 1983 \$263,727.64 dollars today
\$500,000 dollars in 1983 \$1,318,638.21 dollars today
\$1,000,000 dollars in 1983 \$2,637,276.42 dollars today

Period Value
1983 100
1984 103.79
1985 107.89
1986 111.99
1987 113.22
1988 118.24
1989 123.46
1990 129.2
1991 137.09
1992 141.29
1993 145.39
1994 149.39
1995 153.38
1996 157.27
1997 162.5
1998 165.27
1999 167.93
2000 172.44
2001 178.28
2002 181.05
2003 185.35
2004 188.83
2005 194.98
2006 201.64
2007 206.76
2008 215.2
2009 215.4
2010 221.26
2011 224.57
2012 231.22
2013 235.25
2014 238.78
2015 240.59
2016 242.34
2017 247.37
2018 252.59
2019 257.41
2020 263.29
Today 263.73