You might be interested in calculating the value of ₹1 for the year 1978. Or calculate the value of ₹1 for the year 1983
.₹1 in 1973 is worth ₹43.15 today.
The value of ₹1 from 1973 to 2022
₹1 in 1973 has the purchasing power of about ₹43.15 today, a ₹42.15 increase in 49 years. Between 1973 and today, the rupee experienced an average annual inflation rate of 7.99%, resulting in a cumulative price increase of 4214.8%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1973.
In 1973, the inflation rate was 16.9408%. 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 1973 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1973 to today) | 4214.8% |
| Average inflation rate (from 1973 to today) | 7.99% |
| Converted amount | ₹43.15 |
| Price Difference | ₹42.15 |
| CPI in 1973 | 214.34 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1973 | 16.9408% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1973 | ₹43.15 in 2022 |
Buying power of ₹1 in 1973
If you had ₹1 in your hand in 1973, its adjusted value for inflation today would be ₹43.15. Put another way, you would need ₹43.15 to beat the rising inflation. When ₹1 becomes equivalent to ₹43.15 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 1973 rupees, it's evident how ₹1 loses its worth over 49 years.
Rupee inflation for ₹1 from 1973 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1973 to the year 1973.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1973 | 1 | 16.9408% |
| 1974 | 274.36 | 28.60% |
| 1975 | 290.91 | 5.75% |
| 1976 | 1.26 | -7.63% |
| 1977 | 1.36 | 8.31% |
| 1978 | 1.39 | 2.52% |
| 1979 | 1.48 | 6.28% |
| 1980 | 1.65 | 11.35% |
| 1981 | 1.87 | 13.11% |
| 1982 | 2.01 | 7.89% |
| 1983 | 2.25 | 11.87% |
| 1984 | 2.44 | 8.32% |
| 1985 | 2.58 | 5.56% |
| 1986 | 2.8 | 8.73% |
| 1987 | 3.05 | 8.80% |
| 1988 | 3.33 | 9.38% |
| 1989 | 3.57 | 7.07% |
| 1990 | 3.89 | 8.97% |
| 1991 | 4.43 | 13.87% |
| 1992 | 4.95 | 11.79% |
| 1993 | 5.26 | 6.33% |
| 1994 | 5.8 | 10.25% |
| 1995 | 6.4 | 10.22% |
| 1996 | 6.97 | 8.9772% |
| 1997 | 7.47 | 7.1643% |
| 1998 | 8.46 | 13.2308% |
| 1999 | 8.86 | 4.6698% |
| 2000 | 9.21 | 4.0094% |
| 2001 | 9.56 | 3.77% |
| 2002 | 9.97 | 4.30% |
| 2003 | 10.35 | 3.81% |
| 2004 | 10.74 | 3.7673% |
| 2005 | 11.19 | 4.2463% |
| 2006 | 11.84 | 5.7965% |
| 2007 | 12.6 | 6.3729% |
| 2008 | 13.65 | 8.3493% |
| 2009 | 15.14 | -0.36% |
| 2010 | 16.95 | 1.64% |
| 2011 | 18.46 | 8.91% |
| 2012 | 20.21 | 9.47% |
| 2013 | 22.24 | 10.01% |
| 2014 | 23.72 | 6.66% |
| 2015 | 24.88 | 4.907% |
| 2016 | 26.11 | 4.95% |
| 2017 | 26.98 | 3.33% |
| 2018 | 28.04 | 3.94% |
| 2019 | 29.09 | 3.73% |
| 2020 | 31.02 | 6.62% |
| 2021 | 32.61 | 5.13% |
| 2022 | 34.59 | 6.08% |
Conversion of 1973 rupees to today's price
Based on the 4214.8% change in prices, the following 1973 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1973 | ₹43.15 rupees today |
| ₹5 rupees in 1973 | ₹215.74 rupees today |
| ₹10 rupees in 1973 | ₹431.48 rupees today |
| ₹50 rupees in 1973 | ₹2157.4 rupees today |
| ₹100 rupees in 1973 | ₹4314.8 rupees today |
| ₹500 rupees in 1973 | ₹21574.01 rupees today |
| ₹1,000 rupees in 1973 | ₹43148.02 rupees today |
| ₹5,000 rupees in 1973 | ₹215740.11 rupees today |
| ₹10,000 rupees in 1973 | ₹431480.23 rupees today |
| ₹50,000 rupees in 1973 | ₹2157401.14 rupees today |
| ₹100,000 rupees in 1973 | ₹4314802.28 rupees today |
| ₹500,000 rupees in 1973 | ₹21574011.38 rupees today |
| ₹1,000,000 rupees in 1973 | ₹43148022.77 rupees today |
How to calculate the inflated value of ₹1 in 1973
To calculate the change in value between 1973 and today, we use the following inflation rate formula:
CPI Today / CPI in 1973 x Rupee Value in 1973 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 214.34 x ₹1 = ₹43.15
To buy the same product that you could buy for ₹1 in 1973, you would need ₹43.15 in 2022.
To calculate the cumulative or total inflation rate in the past 49 years between 1973 and 2022, we use the following formula:
CPI in 2022 - CPI in 1973 / CPI in 1973 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 214.34 / 214.34) x 100 = 4214.8%
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 49 years between 2022 and 1973. The average inflation rate was 7.9857748650417%.
Plugging in the values into the formula, we get:
1 (1+ % 7.99/ 100 ) ^ 49 = ₹43.15