Value of 1986 US Dollars today

$100 in 1986

$231.37 in 2018

The inflation rate in the United States between 1986 and today has been 131.37%, which translates into a total increase of $131.37. This means that 100 dollars in 1986 are equivalent to 231.37 dollars in 2018. In other words, the purchasing power of $100 in 1986 equals $231.37 today. The average annual inflation rate has been 2.57%.

Inflation timeline in the United States (1986-2018)

The following chart ilustrates the equivalence of $100 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchashing 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 (1986-2018) 125.55%
Total Inflation* 131.37%
Annual inflation avg. (1986-2018) 2.57%
Annual inflation avg.* 2.57%
CPI 1986 46.11
CPI 2018 104.01
CPI today* 106.7
$1 in 1986 $2.26 in 2018

* 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 32 years between 1986 and 2018 and the average inflation rate has been 2.5746%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = $100 * (1 + 0.03)32 = $225.55

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 1986 was 46.11 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= $100 *
104.01/46.11
= $225.55

USA inflation - Conversion table

Initial Value Equivalent value
$1 dollar in 1986 $2.31 dollars today
$5 dollars in 1986 $11.57 dollars today
$10 dollars in 1986 $23.14 dollars today
$50 dollars in 1986 $115.69 dollars today
$100 dollars in 1986 $231.37 dollars today
$500 dollars in 1986 $1,156.85 dollars today
$1,000 dollars in 1986 $2,313.71 dollars today
$5,000 dollars in 1986 $11,568.53 dollars today
$10,000 dollars in 1986 $23,137.07 dollars today
$50,000 dollars in 1986 $115,685.33 dollars today
$100,000 dollars in 1986 $231,370.67 dollars today
$500,000 dollars in 1986 $1,156,853.34 dollars today
$1,000,000 dollars in 1986 $2,313,706.68 dollars today

Value of Dollar in time (by year)

Period Value
1986 100
1987 101.1
1988 105.58
1989 110.25
1990 115.37
1991 122.42
1992 126.17
1993 129.83
1994 133.39
1995 136.96
1996 140.44
1997 145.11
1998 147.58
1999 149.95
2000 153.98
2001 159.19
2002 161.67
2003 165.51
2004 168.62
2005 174.11
2006 180.05
2007 184.63
2008 192.16
2009 192.34
2010 197.57
2011 200.53
2012 206.47
2013 210.06
2014 213.22
2015 214.83
2016 216.4
2017 220.89
2018 225.55
Today 231.37