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Inflation calculator - US Dollar

$500,000 in 1970
$3,489,629.25 in 2021

The inflation rate in the United States between 1970 and 2021 was 597.93%, which translates into a total increase of $2,989,629.25. This means that 500,000 dollars in 1970 are equivalent to 3,489,629.25 dollars in 2021. In other words, the purchasing power of $500,000 in 1970 equals $3,489,629.25 in 2021. The average annual inflation rate between these periods was 3.88%.

Inflation timeline in the United States (1970 - 2021)

The following chart depicts the equivalence of $500,000 due to compound 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.

The following table contains relevant indicators:

Indicator Value
Cumulative inflation from 1970 to 2021 597.93%
Avg. Annual inflation from 1970 to 2021 3.88%
CPI 1970 16.38
CPI 2021 114.33

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 Consumer Price Index (CPI) formula or the compound interest formula.

Using the CPI formula

When we have both the start and end years, we can use the following formula:

Valuet =Value0 ×
CPIt/CPI0

To obtain the values equivalent in buying power between 1970 and 2021, use the corresponding CPI values:

Value2021
=Value1970 ×
CPI2021/CPI1970
=$ 500,000 ×
114.33/16.38
$3,489,629.25

Alternative: Using the compound interest formula

Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: 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 $500,000 worth today. There are 51 years between 1970 and 2021 and the average inflation rate was 3.8832%. Therefore, we can resolve the formula like this:

Value2021
=PV × (1 + i)n
=$500,000 × (1 + 0.038832)51
$3,489,629.25

US inflation - Conversion table

Initial Value Equivalent value
$1 dollar in 1970 $6.98 dollars in 2021
$5 dollars in 1970 $34.9 dollars in 2021
$10 dollars in 1970 $69.79 dollars in 2021
$50 dollars in 1970 $348.96 dollars in 2021
$100 dollars in 1970 $697.93 dollars in 2021
$500 dollars in 1970 $3,489.63 dollars in 2021
$1,000 dollars in 1970 $6,979.26 dollars in 2021
$5,000 dollars in 1970 $34,896.29 dollars in 2021
$10,000 dollars in 1970 $69,792.58 dollars in 2021
$50,000 dollars in 1970 $348,962.92 dollars in 2021
$100,000 dollars in 1970 $697,925.85 dollars in 2021
$500,000 dollars in 1970 $3,489,629.25 dollars in 2021
$1,000,000 dollars in 1970 $6,979,258.49 dollars in 2021
Cumulative inflation 1970-2021 597.93%
Avg. annual inflation 1970-2021 3.88%
CPI 1970 16.38
CPI 2021 114.33

Value of Dollar over time (by year)

Period Value
1970 500,000
1971 521,464.01
1972 538,527.7
1973 571,796.47
1974 635,007.52
1975 693,067.38
1976 732,882.58
1977 780,532.31
1978 840,094.55
1979 934,642.82
1980 1,061,279.51
1981 1,170,959.63
1982 1,242,756.1
1983 1,282,678.74
1984 1,337,840.98
1985 1,385,275.82
1986 1,411,569.3
1987 1,463,297.01
1988 1,522,966.38
1989 1,596,480.12
1990 1,682,657.25
1991 1,753,917.42
1992 1,807,040.37
1993 1,860,377.9
1994 1,908,886.26
1995 1,962,438.37
1996 2,019,961.63
1997 2,067,181.89
1998 2,099,270.6
1999 2,145,203.07
2000 2,217,643.59
2001 2,280,317.73
2002 2,316,484.42
2003 2,369,070.76
2004 2,432,496.39
2005 2,515,025.02
2006 2,596,158.1
2007 2,670,218.21
2008 2,772,730.44
2009 2,762,872.18
2010 2,808,184.4
2011 2,896,834.56
2012 2,956,779.57
2013 3,000,091.57
2014 3,048,759.88
2015 3,052,376.34
2016 3,090,885.12
2017 3,156,724.87
2018 3,233,827.9
2019 3,292,433.53
2020 3,333,048.44
2021 3,489,629.25

All available years

Today's value of US dollars by year:

1956 | 1957 | 1958 | 1959 | 1960 | 1961 | 1962 | 1963 | 1964 | 1965 | 1966 | 1967 | 1968 | 1969 | 1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |

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