You might be interested in calculating the value of ₹1 for the year 1979. Or calculate the value of ₹1 for the year 1984
.₹1 in 1974 is worth ₹33.71 today.
The value of ₹1 from 1974 to 2022
₹1 in 1974 has the purchasing power of about ₹33.71 today, a ₹32.71 increase in 48 years. Between 1974 and today, the rupee experienced an average annual inflation rate of 7.6%, resulting in a cumulative price increase of 3270.88%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1974.
In 1974, the inflation rate was 28.5987%. 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 1974 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1974 to today) | 3270.88% |
| Average inflation rate (from 1974 to today) | 7.6% |
| Converted amount | ₹33.71 |
| Price Difference | ₹32.71 |
| CPI in 1974 | 274.36 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1974 | 28.5987% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1974 | ₹33.71 in 2022 |
Buying power of ₹1 in 1974
If you had ₹1 in your hand in 1974, its adjusted value for inflation today would be ₹33.71. Put another way, you would need ₹33.71 to beat the rising inflation. When ₹1 becomes equivalent to ₹33.71 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 1974 rupees, it's evident how ₹1 loses its worth over 48 years.
Rupee inflation for ₹1 from 1974 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1974 to the year 1974.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1974 | 1 | 28.5987% |
| 1975 | 290.91 | 5.75% |
| 1976 | 0.98 | -7.63% |
| 1977 | 1.06 | 8.31% |
| 1978 | 1.08 | 2.52% |
| 1979 | 1.15 | 6.28% |
| 1980 | 1.28 | 11.35% |
| 1981 | 1.45 | 13.11% |
| 1982 | 1.57 | 7.89% |
| 1983 | 1.75 | 11.87% |
| 1984 | 1.9 | 8.32% |
| 1985 | 2 | 5.56% |
| 1986 | 2.18 | 8.73% |
| 1987 | 2.37 | 8.80% |
| 1988 | 2.59 | 9.38% |
| 1989 | 2.78 | 7.07% |
| 1990 | 3.02 | 8.97% |
| 1991 | 3.44 | 13.87% |
| 1992 | 3.85 | 11.79% |
| 1993 | 4.09 | 6.33% |
| 1994 | 4.51 | 10.25% |
| 1995 | 4.97 | 10.22% |
| 1996 | 5.42 | 8.9772% |
| 1997 | 5.81 | 7.1643% |
| 1998 | 6.58 | 13.2308% |
| 1999 | 6.89 | 4.6698% |
| 2000 | 7.16 | 4.0094% |
| 2001 | 7.43 | 3.77% |
| 2002 | 7.75 | 4.30% |
| 2003 | 8.05 | 3.81% |
| 2004 | 8.35 | 3.7673% |
| 2005 | 8.7 | 4.2463% |
| 2006 | 9.21 | 5.7965% |
| 2007 | 9.8 | 6.3729% |
| 2008 | 10.61 | 8.3493% |
| 2009 | 11.77 | -0.36% |
| 2010 | 13.18 | 1.64% |
| 2011 | 14.36 | 8.91% |
| 2012 | 15.72 | 9.47% |
| 2013 | 17.29 | 10.01% |
| 2014 | 18.44 | 6.66% |
| 2015 | 19.35 | 4.907% |
| 2016 | 20.31 | 4.95% |
| 2017 | 20.98 | 3.33% |
| 2018 | 21.81 | 3.94% |
| 2019 | 22.62 | 3.73% |
| 2020 | 24.12 | 6.62% |
| 2021 | 25.36 | 5.13% |
| 2022 | 26.9 | 6.08% |
Conversion of 1974 rupees to today's price
Based on the 3270.88% change in prices, the following 1974 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1974 | ₹33.71 rupees today |
| ₹5 rupees in 1974 | ₹168.54 rupees today |
| ₹10 rupees in 1974 | ₹337.09 rupees today |
| ₹50 rupees in 1974 | ₹1685.44 rupees today |
| ₹100 rupees in 1974 | ₹3370.88 rupees today |
| ₹500 rupees in 1974 | ₹16854.4 rupees today |
| ₹1,000 rupees in 1974 | ₹33708.8 rupees today |
| ₹5,000 rupees in 1974 | ₹168544.02 rupees today |
| ₹10,000 rupees in 1974 | ₹337088.03 rupees today |
| ₹50,000 rupees in 1974 | ₹1685440.15 rupees today |
| ₹100,000 rupees in 1974 | ₹3370880.3 rupees today |
| ₹500,000 rupees in 1974 | ₹16854401.52 rupees today |
| ₹1,000,000 rupees in 1974 | ₹33708803.03 rupees today |
How to calculate the inflated value of ₹1 in 1974
To calculate the change in value between 1974 and today, we use the following inflation rate formula:
CPI Today / CPI in 1974 x Rupee Value in 1974 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 274.36 x ₹1 = ₹33.71
To buy the same product that you could buy for ₹1 in 1974, you would need ₹33.71 in 2022.
To calculate the cumulative or total inflation rate in the past 48 years between 1974 and 2022, we use the following formula:
CPI in 2022 - CPI in 1974 / CPI in 1974 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 274.36 / 274.36) x 100 = 3270.88%
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 48 years between 2022 and 1974. The average inflation rate was 7.6038935256202%.
Plugging in the values into the formula, we get:
1 (1+ % 7.6/ 100 ) ^ 48 = ₹33.71