You might be interested in calculating the value of ₹1 for the year 1975. Or calculate the value of ₹1 for the year 1980
.₹1 in 1970 is worth ₹53.2 today.
The value of ₹1 from 1970 to 2022
₹1 in 1970 has the purchasing power of about ₹53.2 today, a ₹52.2 increase in 52 years. Between 1970 and today, the rupee experienced an average annual inflation rate of 7.94%, resulting in a cumulative price increase of 5220.03%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1970.
In 1970, the inflation rate was 5.0923%. Inflation is now 6.08% higher than it was last year. If this figure holds true, ₹1 today will be worth ₹7.08 next year in purchasing power.
Inflation from 1970 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1970 to today) | 5220.03% |
| Average inflation rate (from 1970 to today) | 7.94% |
| Converted amount | ₹53.2 |
| Price Difference | ₹52.2 |
| CPI in 1970 | 173.84 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1970 | 5.0923% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1970 | ₹53.2 in 2022 |
Buying power of ₹1 in 1970
If you had ₹1 in your hand in 1970, its adjusted value for inflation today would be ₹53.2. Put another way, you would need ₹53.2 to beat the rising inflation. When ₹1 becomes equivalent to ₹53.2 over time, the "real value" of a single Indian rupee decreases. In other words, a rupee will pay for fewer items at the store.
This effect explains how inflation gradually erodes the value of a rupee. By calculating the value in 1970 rupees, it's evident how ₹1 loses its worth over 52 years.
Rupee inflation for ₹1 from 1970 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1970 to the year 1970.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1970 | 1 | 5.0923% |
| 1971 | 179.5 | 3.08% |
| 1972 | 189.73 | 6.44% |
| 1973 | 214.34 | 16.94% |
| 1974 | 274.36 | 28.60% |
| 1975 | 290.91 | 5.75% |
| 1976 | 1.61 | -7.63% |
| 1977 | 1.75 | 8.31% |
| 1978 | 1.79 | 2.52% |
| 1979 | 1.9 | 6.28% |
| 1980 | 2.12 | 11.35% |
| 1981 | 2.4 | 13.11% |
| 1982 | 2.58 | 7.89% |
| 1983 | 2.89 | 11.87% |
| 1984 | 3.13 | 8.32% |
| 1985 | 3.31 | 5.56% |
| 1986 | 3.59 | 8.73% |
| 1987 | 3.91 | 8.80% |
| 1988 | 4.28 | 9.38% |
| 1989 | 4.58 | 7.07% |
| 1990 | 4.99 | 8.97% |
| 1991 | 5.68 | 13.87% |
| 1992 | 6.35 | 11.79% |
| 1993 | 6.76 | 6.33% |
| 1994 | 7.45 | 10.25% |
| 1995 | 8.21 | 10.22% |
| 1996 | 8.95 | 8.9772% |
| 1997 | 9.59 | 7.1643% |
| 1998 | 10.86 | 13.2308% |
| 1999 | 11.36 | 4.6698% |
| 2000 | 11.82 | 4.0094% |
| 2001 | 12.26 | 3.77% |
| 2002 | 12.79 | 4.30% |
| 2003 | 13.28 | 3.81% |
| 2004 | 13.78 | 3.7673% |
| 2005 | 14.36 | 4.2463% |
| 2006 | 15.2 | 5.7965% |
| 2007 | 16.16 | 6.3729% |
| 2008 | 17.51 | 8.3493% |
| 2009 | 19.42 | -0.36% |
| 2010 | 21.75 | 1.64% |
| 2011 | 23.69 | 8.91% |
| 2012 | 25.93 | 9.47% |
| 2013 | 28.53 | 10.01% |
| 2014 | 30.43 | 6.66% |
| 2015 | 31.92 | 4.907% |
| 2016 | 33.5 | 4.95% |
| 2017 | 34.62 | 3.33% |
| 2018 | 35.98 | 3.94% |
| 2019 | 37.32 | 3.73% |
| 2020 | 39.8 | 6.62% |
| 2021 | 41.84 | 5.13% |
| 2022 | 44.38 | 6.08% |
Conversion of 1970 rupees to today's price
Based on the 5220.03% change in prices, the following 1970 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1970 | ₹53.2 rupees today |
| ₹5 rupees in 1970 | ₹266 rupees today |
| ₹10 rupees in 1970 | ₹532 rupees today |
| ₹50 rupees in 1970 | ₹2660.02 rupees today |
| ₹100 rupees in 1970 | ₹5320.03 rupees today |
| ₹500 rupees in 1970 | ₹26600.17 rupees today |
| ₹1,000 rupees in 1970 | ₹53200.34 rupees today |
| ₹5,000 rupees in 1970 | ₹266001.7 rupees today |
| ₹10,000 rupees in 1970 | ₹532003.41 rupees today |
| ₹50,000 rupees in 1970 | ₹2660017.03 rupees today |
| ₹100,000 rupees in 1970 | ₹5320034.05 rupees today |
| ₹500,000 rupees in 1970 | ₹26600170.27 rupees today |
| ₹1,000,000 rupees in 1970 | ₹53200340.54 rupees today |
How to calculate the inflated value of ₹1 in 1970
To calculate the change in value between 1970 and today, we use the following inflation rate formula:
CPI Today / CPI in 1970 x Rupee Value in 1970 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 173.84 x ₹1 = ₹53.2
To buy the same product that you could buy for ₹1 in 1970, you would need ₹53.2 in 2022.
To calculate the cumulative or total inflation rate in the past 52 years between 1970 and 2022, we use the following formula:
CPI in 2022 - CPI in 1970 / CPI in 1970 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 173.84 / 173.84) x 100 = 5220.03%
Alternate method to calculate today's value of money after inflation - Using compound interest formula
Given that money changes over time due to inflation, which acts as compound interest, we can use the following formula:
FV = PV (1+i/100)^n
where,
- FV = Future value
- PV = Present value
- i: Average interest rate (inflation)
- n: Number of times the interest is compounded (i.e. # of years)
The future value in this case represents the amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much ₹1 is worth today. We have 52 years between 2022 and 1970. The average inflation rate was 7.9420499972372%.
Plugging in the values into the formula, we get:
1 (1+ % 7.94/ 100 ) ^ 52 = ₹53.2