# Value of 1988 US Dollars today

\$100 in 1988

\$223.05 in 2020

The inflation rate in the United States between 1988 and today has been 123.05%, which translates into a total increase of \$123.05. This means that 100 dollars in 1988 are equivalent to 223.05 dollars in 2020. In other words, the purchasing power of \$100 in 1988 equals \$223.05 today. The average annual inflation rate has been 2.46%.

## Inflation timeline in the United States (1988-2020)

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 (1988-2020) 122.68%
Total Inflation* 123.05%
Annual inflation avg. (1988-2020) 2.53%
Annual inflation avg.* 2.46%
CPI 1988 48.69
CPI 2020 108.42
CPI today* 108.6
\$1 in 1988 \$2.23 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 32 years between 1988 and 2020 and the average inflation rate has been 2.4608%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)32 = \$222.68

#### 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 1988 was 48.69 and the CPI today is 108.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.42/48.69
= \$222.68

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1988 \$2.23 dollars today
\$5 dollars in 1988 \$11.15 dollars today
\$10 dollars in 1988 \$22.3 dollars today
\$50 dollars in 1988 \$111.52 dollars today
\$100 dollars in 1988 \$223.05 dollars today
\$500 dollars in 1988 \$1,115.24 dollars today
\$1,000 dollars in 1988 \$2,230.49 dollars today
\$5,000 dollars in 1988 \$11,152.43 dollars today
\$10,000 dollars in 1988 \$22,304.87 dollars today
\$50,000 dollars in 1988 \$111,524.34 dollars today
\$100,000 dollars in 1988 \$223,048.68 dollars today
\$500,000 dollars in 1988 \$1,115,243.4 dollars today
\$1,000,000 dollars in 1988 \$2,230,486.8 dollars today

Period Value
1988 100
1989 104.42
1990 109.27
1991 115.94
1992 119.5
1993 122.96
1994 126.34
1995 129.72
1996 133.02
1997 137.44
1998 139.77
1999 142.03
2000 145.84
2001 150.78
2002 153.12
2003 156.76
2004 159.71
2005 164.9
2006 170.54
2007 174.87
2008 182.01
2009 182.17
2010 187.13
2011 189.93
2012 195.56
2013 198.96
2014 201.95
2015 203.48
2016 204.96
2017 209.21
2018 213.63
2019 217.71
2020 222.68
Today 223.05