# Inflation calculator - US Dollar

\$100 in 2000

\$152.69 in 2020

The inflation rate in the United States between 2000 and 2020 was 52.69%, which translates into a total increase of \$52.69. This means that 100 dollars in 2000 are equivalent to 152.69 dollars in 2020. In other words, the purchasing power of \$100 in 2000 equals \$152.69 in 2020. The average annual inflation rate between these periods was 2.14%.

## Inflation timeline in the United States (2000 - 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.

The following table contains relevant indicators:

Indicator Value
Total Inflation (2000-2020) 52.69%
Annual inflation avg. (2000-2020) 2.14%
CPI 2000 71.01
CPI 2020 108.42
\$1 in 2000 \$1.53 in 2020

## How to calculate the time value of money with inflation data?

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, the future value is the amount in 2020 that equals \$100 in 2000 in terms of purchasing power. There are 20 years between 2000 and 2020 and the average inflation rate was 2.1387%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.021387)20 = \$152.688087 ≈ \$152.69

#### 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 2000 was 71.01 and in 2020 was 108.42. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.42/71.01
= \$152.69

### USA inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 2000 \$1.53 dollars in 2020
\$5 dollars in 2000 \$7.63 dollars in 2020
\$10 dollars in 2000 \$15.27 dollars in 2020
\$50 dollars in 2000 \$76.34 dollars in 2020
\$100 dollars in 2000 \$152.69 dollars in 2020
\$500 dollars in 2000 \$763.44 dollars in 2020
\$1,000 dollars in 2000 \$1,526.88 dollars in 2020
\$5,000 dollars in 2000 \$7,634.4 dollars in 2020
\$10,000 dollars in 2000 \$15,268.81 dollars in 2020
\$50,000 dollars in 2000 \$76,344.04 dollars in 2020
\$100,000 dollars in 2000 \$152,688.09 dollars in 2020
\$500,000 dollars in 2000 \$763,440.43 dollars in 2020
\$1,000,000 dollars in 2000 \$1,526,880.87 dollars in 2020

Period Value
2000 100
2001 103.39
2002 104.99
2003 107.49
2004 109.51
2005 113.07
2006 116.93
2007 119.9
2008 124.8
2009 124.91
2010 128.31
2011 130.23
2012 134.09
2013 136.42
2014 138.47
2015 139.52
2016 140.54
2017 143.45
2018 146.48
2019 149.28
2020 152.69