You might be interested in calculating the value of ₹1 for the year 1983. Or calculate the value of ₹1 for the year 1988
.₹1 in 1978 is worth ₹30.84 today.
The value of ₹1 from 1978 to 2022
₹1 in 1978 has the purchasing power of about ₹30.84 today, a ₹29.84 increase in 44 years. Between 1978 and today, the rupee experienced an average annual inflation rate of 8.1%, resulting in a cumulative price increase of 2984.12%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1978.
In 1978, the inflation rate was 2.523%. 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 1978 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1978 to today) | 2984.12% |
| Average inflation rate (from 1978 to today) | 8.1% |
| Converted amount | ₹30.84 |
| Price Difference | ₹29.84 |
| CPI in 1978 | 299.87 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1978 | 2.523% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1978 | ₹30.84 in 2022 |
Buying power of ₹1 in 1978
If you had ₹1 in your hand in 1978, its adjusted value for inflation today would be ₹30.84. Put another way, you would need ₹30.84 to beat the rising inflation. When ₹1 becomes equivalent to ₹30.84 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 1978 rupees, it's evident how ₹1 loses its worth over 44 years.
Rupee inflation for ₹1 from 1978 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1978 to the year 1978.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1978 | 1 | 2.523% |
| 1979 | 1.06 | 6.28% |
| 1980 | 1.18 | 11.35% |
| 1981 | 1.34 | 13.11% |
| 1982 | 1.44 | 7.89% |
| 1983 | 1.62 | 11.87% |
| 1984 | 1.75 | 8.32% |
| 1985 | 1.85 | 5.56% |
| 1986 | 2.01 | 8.73% |
| 1987 | 2.19 | 8.80% |
| 1988 | 2.39 | 9.38% |
| 1989 | 2.56 | 7.07% |
| 1990 | 2.79 | 8.97% |
| 1991 | 3.18 | 13.87% |
| 1992 | 3.55 | 11.79% |
| 1993 | 3.77 | 6.33% |
| 1994 | 4.16 | 10.25% |
| 1995 | 4.59 | 10.22% |
| 1996 | 5 | 8.9772% |
| 1997 | 5.36 | 7.1643% |
| 1998 | 6.07 | 13.2308% |
| 1999 | 6.35 | 4.6698% |
| 2000 | 6.6 | 4.0094% |
| 2001 | 6.85 | 3.77% |
| 2002 | 7.15 | 4.30% |
| 2003 | 7.42 | 3.81% |
| 2004 | 7.7 | 3.7673% |
| 2005 | 8.03 | 4.2463% |
| 2006 | 8.49 | 5.7965% |
| 2007 | 9.03 | 6.3729% |
| 2008 | 9.79 | 8.3493% |
| 2009 | 10.85 | -0.36% |
| 2010 | 12.15 | 1.64% |
| 2011 | 13.24 | 8.91% |
| 2012 | 14.49 | 9.47% |
| 2013 | 15.94 | 10.01% |
| 2014 | 17 | 6.66% |
| 2015 | 17.84 | 4.907% |
| 2016 | 18.72 | 4.95% |
| 2017 | 19.34 | 3.33% |
| 2018 | 20.11 | 3.94% |
| 2019 | 20.86 | 3.73% |
| 2020 | 22.24 | 6.62% |
| 2021 | 23.38 | 5.13% |
| 2022 | 24.8 | 6.08% |
Conversion of 1978 rupees to today's price
Based on the 2984.12% change in prices, the following 1978 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1978 | ₹30.84 rupees today |
| ₹5 rupees in 1978 | ₹154.21 rupees today |
| ₹10 rupees in 1978 | ₹308.41 rupees today |
| ₹50 rupees in 1978 | ₹1542.06 rupees today |
| ₹100 rupees in 1978 | ₹3084.12 rupees today |
| ₹500 rupees in 1978 | ₹15420.59 rupees today |
| ₹1,000 rupees in 1978 | ₹30841.19 rupees today |
| ₹5,000 rupees in 1978 | ₹154205.94 rupees today |
| ₹10,000 rupees in 1978 | ₹308411.89 rupees today |
| ₹50,000 rupees in 1978 | ₹1542059.43 rupees today |
| ₹100,000 rupees in 1978 | ₹3084118.85 rupees today |
| ₹500,000 rupees in 1978 | ₹15420594.26 rupees today |
| ₹1,000,000 rupees in 1978 | ₹30841188.52 rupees today |
How to calculate the inflated value of ₹1 in 1978
To calculate the change in value between 1978 and today, we use the following inflation rate formula:
CPI Today / CPI in 1978 x Rupee Value in 1978 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 299.87 x ₹1 = ₹30.84
To buy the same product that you could buy for ₹1 in 1978, you would need ₹30.84 in 2022.
To calculate the cumulative or total inflation rate in the past 44 years between 1978 and 2022, we use the following formula:
CPI in 2022 - CPI in 1978 / CPI in 1978 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 299.87 / 299.87) x 100 = 2984.12%
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 44 years between 2022 and 1978. The average inflation rate was 8.104528957003%.
Plugging in the values into the formula, we get:
1 (1+ % 8.1/ 100 ) ^ 44 = ₹30.84