# Value of 1989 US Dollars today

\$100 in 1989

\$216.21 in 2021

The inflation rate in the United States between 1989 and today has been 116.21%, which translates into a total increase of \$116.21. This means that 100 dollars in 1989 are equivalent to 216.21 dollars in 2021. In other words, the purchasing power of \$100 in 1989 equals \$216.21 today. The average annual inflation rate has been 2.36%.

## Inflation timeline in the United States (1989-2021)

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 (1989-2021) 116.16%
Total Inflation* 116.21%
Annual inflation avg. (1989-2021) 2.44%
Annual inflation avg.* 2.36%
CPI 1989 50.84
CPI 2021 109.9
CPI today* 109.92
\$1 in 1989 \$2.16 in 2021

* 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 1989 and 2021 and the average inflation rate has been 2.3641%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)32 = \$216.16

#### 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 1989 was 50.84 and the CPI today is 109.92. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
109.9/50.84
= \$216.16

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1989 \$2.16 dollars today
\$5 dollars in 1989 \$10.81 dollars today
\$10 dollars in 1989 \$21.62 dollars today
\$50 dollars in 1989 \$108.11 dollars today
\$100 dollars in 1989 \$216.21 dollars today
\$500 dollars in 1989 \$1,081.05 dollars today
\$1,000 dollars in 1989 \$2,162.1 dollars today
\$5,000 dollars in 1989 \$10,810.51 dollars today
\$10,000 dollars in 1989 \$21,621.01 dollars today
\$50,000 dollars in 1989 \$108,105.06 dollars today
\$100,000 dollars in 1989 \$216,210.13 dollars today
\$500,000 dollars in 1989 \$1,081,050.63 dollars today
\$1,000,000 dollars in 1989 \$2,162,101.26 dollars today

Period Value
1989 100
1990 104.65
1991 111.04
1992 114.44
1993 117.76
1994 121
1995 124.23
1996 127.39
1997 131.62
1998 133.86
1999 136.02
2000 139.67
2001 144.4
2002 146.64
2003 150.12
2004 152.95
2005 157.93
2006 163.32
2007 167.47
2008 174.3
2009 174.46
2010 179.21
2011 181.89
2012 187.28
2013 190.54
2014 193.4
2015 194.86
2016 196.29
2017 200.36
2018 204.58
2019 208.49
2020 213.26
2021 216.16
Today 216.21