# Value of 1985 US Dollars today

\$100 in 1985

\$238.66 in 2019

The inflation rate in the United States between 1985 and today has been 138.66%, which translates into a total increase of \$138.66. This means that 100 dollars in 1985 are equivalent to 238.66 dollars in 2019. In other words, the purchasing power of \$100 in 1985 equals \$238.66 today. The average annual inflation rate has been 2.52%.

## Inflation timeline in the United States (1985-2019)

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 (1985-2019) 138.59%
Total Inflation* 138.66%
Annual inflation avg. (1985-2019) 2.59%
Annual inflation avg.* 2.52%
CPI 1985 44.43
CPI 2019 106
CPI today* 106.03
\$1 in 1985 \$2.39 in 2019

* 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 in 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 34 years between 1985 and 2019 and the average inflation rate has been 2.5165%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.03)34 = \$238.59

#### 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 1985 was 44.43 and the CPI today is 106.03. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
106/44.43
= \$238.59

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1985 \$2.39 dollars today
\$5 dollars in 1985 \$11.93 dollars today
\$10 dollars in 1985 \$23.87 dollars today
\$50 dollars in 1985 \$119.33 dollars today
\$100 dollars in 1985 \$238.66 dollars today
\$500 dollars in 1985 \$1,193.32 dollars today
\$1,000 dollars in 1985 \$2,386.64 dollars today
\$5,000 dollars in 1985 \$11,933.19 dollars today
\$10,000 dollars in 1985 \$23,866.39 dollars today
\$50,000 dollars in 1985 \$119,331.93 dollars today
\$100,000 dollars in 1985 \$238,663.86 dollars today
\$500,000 dollars in 1985 \$1,193,319.29 dollars today
\$1,000,000 dollars in 1985 \$2,386,638.58 dollars today

Period Value
1985 100
1986 103.8
1987 104.94
1988 109.59
1989 114.43
1990 119.75
1991 127.07
1992 130.96
1993 134.76
1994 138.46
1995 142.17
1996 145.77
1997 150.62
1998 153.18
1999 155.65
2000 159.83
2001 165.24
2002 167.81
2003 171.79
2004 175.02
2005 180.72
2006 186.89
2007 191.64
2008 199.46
2009 199.65
2010 205.08
2011 208.15
2012 214.31
2013 218.04
2014 221.32
2015 222.99
2016 224.62
2017 229.28
2018 234.12
2019 238.59
Today 238.66