You might be interested in calculating the value of ₹1 for the year 1985. Or calculate the value of ₹1 for the year 1990
.₹1 in 1980 is worth ₹26.29 today.
The value of ₹1 from 1980 to 2022
₹1 in 1980 has the purchasing power of about ₹26.29 today, a ₹25.29 increase in 42 years. Between 1980 and today, the rupee experienced an average annual inflation rate of 8.09%, resulting in a cumulative price increase of 2528.94%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1980.
In 1980, the inflation rate was 11.3461%. 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 1980 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1980 to today) | 2528.94% |
| Average inflation rate (from 1980 to today) | 8.09% |
| Converted amount | ₹26.29 |
| Price Difference | ₹25.29 |
| CPI in 1980 | 351.79 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1980 | 11.3461% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1980 | ₹26.29 in 2022 |
Buying power of ₹1 in 1980
If you had ₹1 in your hand in 1980, its adjusted value for inflation today would be ₹26.29. Put another way, you would need ₹26.29 to beat the rising inflation. When ₹1 becomes equivalent to ₹26.29 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 1980 rupees, it's evident how ₹1 loses its worth over 42 years.
Rupee inflation for ₹1 from 1980 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1980 to the year 1980.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1980 | 1 | 11.3461% |
| 1981 | 1.13 | 13.11% |
| 1982 | 1.22 | 7.89% |
| 1983 | 1.37 | 11.87% |
| 1984 | 1.48 | 8.32% |
| 1985 | 1.56 | 5.56% |
| 1986 | 1.7 | 8.73% |
| 1987 | 1.85 | 8.80% |
| 1988 | 2.02 | 9.38% |
| 1989 | 2.16 | 7.07% |
| 1990 | 2.36 | 8.97% |
| 1991 | 2.68 | 13.87% |
| 1992 | 3 | 11.79% |
| 1993 | 3.19 | 6.33% |
| 1994 | 3.52 | 10.25% |
| 1995 | 3.88 | 10.22% |
| 1996 | 4.22 | 8.9772% |
| 1997 | 4.53 | 7.1643% |
| 1998 | 5.13 | 13.2308% |
| 1999 | 5.37 | 4.6698% |
| 2000 | 5.58 | 4.0094% |
| 2001 | 5.79 | 3.77% |
| 2002 | 6.04 | 4.30% |
| 2003 | 6.27 | 3.81% |
| 2004 | 6.51 | 3.7673% |
| 2005 | 6.78 | 4.2463% |
| 2006 | 7.18 | 5.7965% |
| 2007 | 7.63 | 6.3729% |
| 2008 | 8.27 | 8.3493% |
| 2009 | 9.17 | -0.36% |
| 2010 | 10.27 | 1.64% |
| 2011 | 11.18 | 8.91% |
| 2012 | 12.25 | 9.47% |
| 2013 | 13.47 | 10.01% |
| 2014 | 14.37 | 6.66% |
| 2015 | 15.07 | 4.907% |
| 2016 | 15.82 | 4.95% |
| 2017 | 16.35 | 3.33% |
| 2018 | 16.99 | 3.94% |
| 2019 | 17.62 | 3.73% |
| 2020 | 18.79 | 6.62% |
| 2021 | 19.76 | 5.13% |
| 2022 | 20.96 | 6.08% |
Conversion of 1980 rupees to today's price
Based on the 2528.94% change in prices, the following 1980 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1980 | ₹26.29 rupees today |
| ₹5 rupees in 1980 | ₹131.45 rupees today |
| ₹10 rupees in 1980 | ₹262.89 rupees today |
| ₹50 rupees in 1980 | ₹1314.47 rupees today |
| ₹100 rupees in 1980 | ₹2628.94 rupees today |
| ₹500 rupees in 1980 | ₹13144.7 rupees today |
| ₹1,000 rupees in 1980 | ₹26289.4 rupees today |
| ₹5,000 rupees in 1980 | ₹131446.99 rupees today |
| ₹10,000 rupees in 1980 | ₹262893.98 rupees today |
| ₹50,000 rupees in 1980 | ₹1314469.88 rupees today |
| ₹100,000 rupees in 1980 | ₹2628939.77 rupees today |
| ₹500,000 rupees in 1980 | ₹13144698.83 rupees today |
| ₹1,000,000 rupees in 1980 | ₹26289397.65 rupees today |
How to calculate the inflated value of ₹1 in 1980
To calculate the change in value between 1980 and today, we use the following inflation rate formula:
CPI Today / CPI in 1980 x Rupee Value in 1980 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 351.79 x ₹1 = ₹26.29
To buy the same product that you could buy for ₹1 in 1980, you would need ₹26.29 in 2022.
To calculate the cumulative or total inflation rate in the past 42 years between 1980 and 2022, we use the following formula:
CPI in 2022 - CPI in 1980 / CPI in 1980 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 351.79 / 351.79) x 100 = 2528.94%
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 42 years between 2022 and 1980. The average inflation rate was 8.0946751848755%.
Plugging in the values into the formula, we get:
1 (1+ % 8.09/ 100 ) ^ 42 = ₹26.29