You might be interested in calculating the value of ₹1 for the year 1976. Or calculate the value of ₹1 for the year 1981
.₹1 in 1971 is worth ₹51.52 today.
The value of ₹1 from 1971 to 2022
₹1 in 1971 has the purchasing power of about ₹51.52 today, a ₹50.52 increase in 51 years. Between 1971 and today, the rupee experienced an average annual inflation rate of 8.04%, resulting in a cumulative price increase of 5052.28%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1971.
In 1971, the inflation rate was 3.0799%. 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 1971 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1971 to today) | 5052.28% |
| Average inflation rate (from 1971 to today) | 8.04% |
| Converted amount | ₹51.52 |
| Price Difference | ₹50.52 |
| CPI in 1971 | 179.5 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1971 | 3.0799% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1971 | ₹51.52 in 2022 |
Buying power of ₹1 in 1971
If you had ₹1 in your hand in 1971, its adjusted value for inflation today would be ₹51.52. Put another way, you would need ₹51.52 to beat the rising inflation. When ₹1 becomes equivalent to ₹51.52 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 1971 rupees, it's evident how ₹1 loses its worth over 51 years.
Rupee inflation for ₹1 from 1971 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1971 to the year 1971.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1971 | 1 | 3.0799% |
| 1972 | 189.73 | 6.44% |
| 1973 | 214.34 | 16.94% |
| 1974 | 274.36 | 28.60% |
| 1975 | 290.91 | 5.75% |
| 1976 | 1.56 | -7.63% |
| 1977 | 1.69 | 8.31% |
| 1978 | 1.74 | 2.52% |
| 1979 | 1.85 | 6.28% |
| 1980 | 2.05 | 11.35% |
| 1981 | 2.32 | 13.11% |
| 1982 | 2.51 | 7.89% |
| 1983 | 2.8 | 11.87% |
| 1984 | 3.04 | 8.32% |
| 1985 | 3.21 | 5.56% |
| 1986 | 3.49 | 8.73% |
| 1987 | 3.79 | 8.80% |
| 1988 | 4.15 | 9.38% |
| 1989 | 4.44 | 7.07% |
| 1990 | 4.84 | 8.97% |
| 1991 | 5.51 | 13.87% |
| 1992 | 6.16 | 11.79% |
| 1993 | 6.55 | 6.33% |
| 1994 | 7.22 | 10.25% |
| 1995 | 7.96 | 10.22% |
| 1996 | 8.68 | 8.9772% |
| 1997 | 9.3 | 7.1643% |
| 1998 | 10.53 | 13.2308% |
| 1999 | 11.02 | 4.6698% |
| 2000 | 11.46 | 4.0094% |
| 2001 | 11.9 | 3.77% |
| 2002 | 12.41 | 4.30% |
| 2003 | 12.88 | 3.81% |
| 2004 | 13.37 | 3.7673% |
| 2005 | 13.93 | 4.2463% |
| 2006 | 14.74 | 5.7965% |
| 2007 | 15.68 | 6.3729% |
| 2008 | 16.99 | 8.3493% |
| 2009 | 18.84 | -0.36% |
| 2010 | 21.1 | 1.64% |
| 2011 | 22.98 | 8.91% |
| 2012 | 25.16 | 9.47% |
| 2013 | 27.68 | 10.01% |
| 2014 | 29.52 | 6.66% |
| 2015 | 30.97 | 4.907% |
| 2016 | 32.5 | 4.95% |
| 2017 | 33.58 | 3.33% |
| 2018 | 34.91 | 3.94% |
| 2019 | 36.21 | 3.73% |
| 2020 | 38.61 | 6.62% |
| 2021 | 40.59 | 5.13% |
| 2022 | 43.06 | 6.08% |
Conversion of 1971 rupees to today's price
Based on the 5052.28% change in prices, the following 1971 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1971 | ₹51.52 rupees today |
| ₹5 rupees in 1971 | ₹257.61 rupees today |
| ₹10 rupees in 1971 | ₹515.23 rupees today |
| ₹50 rupees in 1971 | ₹2576.14 rupees today |
| ₹100 rupees in 1971 | ₹5152.28 rupees today |
| ₹500 rupees in 1971 | ₹25761.41 rupees today |
| ₹1,000 rupees in 1971 | ₹51522.83 rupees today |
| ₹5,000 rupees in 1971 | ₹257614.13 rupees today |
| ₹10,000 rupees in 1971 | ₹515228.26 rupees today |
| ₹50,000 rupees in 1971 | ₹2576141.28 rupees today |
| ₹100,000 rupees in 1971 | ₹5152282.56 rupees today |
| ₹500,000 rupees in 1971 | ₹25761412.81 rupees today |
| ₹1,000,000 rupees in 1971 | ₹51522825.63 rupees today |
How to calculate the inflated value of ₹1 in 1971
To calculate the change in value between 1971 and today, we use the following inflation rate formula:
CPI Today / CPI in 1971 x Rupee Value in 1971 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 179.5 x ₹1 = ₹51.52
To buy the same product that you could buy for ₹1 in 1971, you would need ₹51.52 in 2022.
To calculate the cumulative or total inflation rate in the past 51 years between 1971 and 2022, we use the following formula:
CPI in 2022 - CPI in 1971 / CPI in 1971 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 179.5 / 179.5) x 100 = 5052.28%
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 51 years between 2022 and 1971. The average inflation rate was 8.0360310556793%.
Plugging in the values into the formula, we get:
1 (1+ % 8.04/ 100 ) ^ 51 = ₹51.52