You might be interested in calculating the value of ₹1 for the year 1977. Or calculate the value of ₹1 for the year 1982
.₹1 in 1972 is worth ₹48.74 today.
The value of ₹1 from 1972 to 2022
₹1 in 1972 has the purchasing power of about ₹48.74 today, a ₹47.74 increase in 50 years. Between 1972 and today, the rupee experienced an average annual inflation rate of 8.08%, resulting in a cumulative price increase of 4774.48%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1972.
In 1972, the inflation rate was 6.4421%. 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 1972 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1972 to today) | 4774.48% |
| Average inflation rate (from 1972 to today) | 8.08% |
| Converted amount | ₹48.74 |
| Price Difference | ₹47.74 |
| CPI in 1972 | 189.73 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1972 | 6.4421% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1972 | ₹48.74 in 2022 |
Buying power of ₹1 in 1972
If you had ₹1 in your hand in 1972, its adjusted value for inflation today would be ₹48.74. Put another way, you would need ₹48.74 to beat the rising inflation. When ₹1 becomes equivalent to ₹48.74 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 1972 rupees, it's evident how ₹1 loses its worth over 50 years.
Rupee inflation for ₹1 from 1972 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1972 to the year 1972.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1972 | 1 | 6.4421% |
| 1973 | 214.34 | 16.94% |
| 1974 | 274.36 | 28.60% |
| 1975 | 290.91 | 5.75% |
| 1976 | 1.47 | -7.63% |
| 1977 | 1.59 | 8.31% |
| 1978 | 1.63 | 2.52% |
| 1979 | 1.73 | 6.28% |
| 1980 | 1.93 | 11.35% |
| 1981 | 2.18 | 13.11% |
| 1982 | 2.36 | 7.89% |
| 1983 | 2.63 | 11.87% |
| 1984 | 2.85 | 8.32% |
| 1985 | 3.01 | 5.56% |
| 1986 | 3.28 | 8.73% |
| 1987 | 3.56 | 8.80% |
| 1988 | 3.9 | 9.38% |
| 1989 | 4.17 | 7.07% |
| 1990 | 4.55 | 8.97% |
| 1991 | 5.18 | 13.87% |
| 1992 | 5.79 | 11.79% |
| 1993 | 6.16 | 6.33% |
| 1994 | 6.79 | 10.25% |
| 1995 | 7.48 | 10.22% |
| 1996 | 8.15 | 8.9772% |
| 1997 | 8.74 | 7.1643% |
| 1998 | 9.89 | 13.2308% |
| 1999 | 10.36 | 4.6698% |
| 2000 | 10.77 | 4.0094% |
| 2001 | 11.18 | 3.77% |
| 2002 | 11.66 | 4.30% |
| 2003 | 12.1 | 3.81% |
| 2004 | 12.56 | 3.7673% |
| 2005 | 13.09 | 4.2463% |
| 2006 | 13.85 | 5.7965% |
| 2007 | 14.73 | 6.3729% |
| 2008 | 15.96 | 8.3493% |
| 2009 | 17.7 | -0.36% |
| 2010 | 19.82 | 1.64% |
| 2011 | 21.59 | 8.91% |
| 2012 | 23.63 | 9.47% |
| 2013 | 26 | 10.01% |
| 2014 | 27.74 | 6.66% |
| 2015 | 29.1 | 4.907% |
| 2016 | 30.54 | 4.95% |
| 2017 | 31.55 | 3.33% |
| 2018 | 32.79 | 3.94% |
| 2019 | 34.02 | 3.73% |
| 2020 | 36.27 | 6.62% |
| 2021 | 38.13 | 5.13% |
| 2022 | 40.45 | 6.08% |
Conversion of 1972 rupees to today's price
Based on the 4774.48% change in prices, the following 1972 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1972 | ₹48.74 rupees today |
| ₹5 rupees in 1972 | ₹243.72 rupees today |
| ₹10 rupees in 1972 | ₹487.45 rupees today |
| ₹50 rupees in 1972 | ₹2437.24 rupees today |
| ₹100 rupees in 1972 | ₹4874.48 rupees today |
| ₹500 rupees in 1972 | ₹24372.39 rupees today |
| ₹1,000 rupees in 1972 | ₹48744.78 rupees today |
| ₹5,000 rupees in 1972 | ₹243723.9 rupees today |
| ₹10,000 rupees in 1972 | ₹487447.8 rupees today |
| ₹50,000 rupees in 1972 | ₹2437239.02 rupees today |
| ₹100,000 rupees in 1972 | ₹4874478.05 rupees today |
| ₹500,000 rupees in 1972 | ₹24372390.24 rupees today |
| ₹1,000,000 rupees in 1972 | ₹48744780.48 rupees today |
How to calculate the inflated value of ₹1 in 1972
To calculate the change in value between 1972 and today, we use the following inflation rate formula:
CPI Today / CPI in 1972 x Rupee Value in 1972 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 189.73 x ₹1 = ₹48.74
To buy the same product that you could buy for ₹1 in 1972, you would need ₹48.74 in 2022.
To calculate the cumulative or total inflation rate in the past 50 years between 1972 and 2022, we use the following formula:
CPI in 2022 - CPI in 1972 / CPI in 1972 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 189.73 / 189.73) x 100 = 4774.48%
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 50 years between 2022 and 1972. The average inflation rate was 8.083291607914%.
Plugging in the values into the formula, we get:
1 (1+ % 8.08/ 100 ) ^ 50 = ₹48.74