$20,000 in 2017
$21,596.21 today
The inflation rate in the United States between 2017 and today has been 7.98%, which translates into a total increase of $1,596.21. This means that 20,000 dollars in 2017 are equivalent to 21,596.21 dollars in 2021. In other words, the purchasing power of $20,000 in 2017 equals $21,596.21 today. The average annual inflation rate has been 1.55%.
The following chart depicts the equivalence of $20,000 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 (2017-2021) | 7.89% |
| Total Inflation* | 7.98% |
| Annual inflation avg. (2017-2021) | 1.92% |
| Annual inflation avg.* | 1.55% |
| CPI 2017 | 101.86 |
| CPI 2021 | 109.9 |
| CPI today* | 109.99 |
| $1 in 2017 | $1.08 in 2021 |
* Values extrapolated from the last official data to obtain today's values.
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.
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:
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 $20,000 worth today. There are 4 years between 2017 and 2021 and the average inflation rate has been 1.5476%. Therefore, we can resolve the formula like this:
FV = PV (1 + i)n = $20000 * (1 + 0.02)4 = $21,577.44
When the CPI for both start and end years is known, the following formula can be used:
In this case, the CPI in 2017 was 101.86 and the CPI today is 109.99. Therefore,
| Initial Value | Equivalent value | |
|---|---|---|
| $1 dollar in 2017 | $1.08 dollars today | |
| $5 dollars in 2017 | $5.4 dollars today | |
| $10 dollars in 2017 | $10.8 dollars today | |
| $50 dollars in 2017 | $53.99 dollars today | |
| $100 dollars in 2017 | $107.98 dollars today | |
| $500 dollars in 2017 | $539.91 dollars today | |
| $1,000 dollars in 2017 | $1,079.81 dollars today | |
| $5,000 dollars in 2017 | $5,399.05 dollars today | |
| $10,000 dollars in 2017 | $10,798.11 dollars today | |
| $50,000 dollars in 2017 | $53,990.53 dollars today | |
| $100,000 dollars in 2017 | $107,981.07 dollars today | |
| $500,000 dollars in 2017 | $539,905.33 dollars today | |
| $1,000,000 dollars in 2017 | $1,079,810.66 dollars today |
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