You might be interested in calculating the value of ₹1 for the year 1986. Or calculate the value of ₹1 for the year 1991
.₹1 in 1981 is worth ₹23.31 today.
The value of ₹1 from 1981 to 2022
₹1 in 1981 has the purchasing power of about ₹23.31 today, a ₹22.31 increase in 41 years. Between 1981 and today, the rupee experienced an average annual inflation rate of 7.98%, resulting in a cumulative price increase of 2231.09%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1981.
In 1981, the inflation rate was 13.1125%. 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 1981 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1981 to today) | 2231.09% |
| Average inflation rate (from 1981 to today) | 7.98% |
| Converted amount | ₹23.31 |
| Price Difference | ₹22.31 |
| CPI in 1981 | 396.74 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1981 | 13.1125% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1981 | ₹23.31 in 2022 |
Buying power of ₹1 in 1981
If you had ₹1 in your hand in 1981, its adjusted value for inflation today would be ₹23.31. Put another way, you would need ₹23.31 to beat the rising inflation. When ₹1 becomes equivalent to ₹23.31 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 1981 rupees, it's evident how ₹1 loses its worth over 41 years.
Rupee inflation for ₹1 from 1981 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1981 to the year 1981.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1981 | 1 | 13.1125% |
| 1982 | 1.08 | 7.89% |
| 1983 | 1.21 | 11.87% |
| 1984 | 1.31 | 8.32% |
| 1985 | 1.38 | 5.56% |
| 1986 | 1.5 | 8.73% |
| 1987 | 1.63 | 8.80% |
| 1988 | 1.79 | 9.38% |
| 1989 | 1.91 | 7.07% |
| 1990 | 2.08 | 8.97% |
| 1991 | 2.37 | 13.87% |
| 1992 | 2.65 | 11.79% |
| 1993 | 2.82 | 6.33% |
| 1994 | 3.11 | 10.25% |
| 1995 | 3.43 | 10.22% |
| 1996 | 3.73 | 8.9772% |
| 1997 | 4 | 7.1643% |
| 1998 | 4.53 | 13.2308% |
| 1999 | 4.74 | 4.6698% |
| 2000 | 4.93 | 4.0094% |
| 2001 | 5.12 | 3.77% |
| 2002 | 5.34 | 4.30% |
| 2003 | 5.54 | 3.81% |
| 2004 | 5.75 | 3.7673% |
| 2005 | 6 | 4.2463% |
| 2006 | 6.34 | 5.7965% |
| 2007 | 6.75 | 6.3729% |
| 2008 | 7.31 | 8.3493% |
| 2009 | 8.11 | -0.36% |
| 2010 | 9.08 | 1.64% |
| 2011 | 9.89 | 8.91% |
| 2012 | 10.83 | 9.47% |
| 2013 | 11.91 | 10.01% |
| 2014 | 12.7 | 6.66% |
| 2015 | 13.33 | 4.907% |
| 2016 | 13.99 | 4.95% |
| 2017 | 14.45 | 3.33% |
| 2018 | 15.02 | 3.94% |
| 2019 | 15.58 | 3.73% |
| 2020 | 16.61 | 6.62% |
| 2021 | 17.47 | 5.13% |
| 2022 | 18.53 | 6.08% |
Conversion of 1981 rupees to today's price
Based on the 2231.09% change in prices, the following 1981 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1981 | ₹23.31 rupees today |
| ₹5 rupees in 1981 | ₹116.55 rupees today |
| ₹10 rupees in 1981 | ₹233.11 rupees today |
| ₹50 rupees in 1981 | ₹1165.54 rupees today |
| ₹100 rupees in 1981 | ₹2331.09 rupees today |
| ₹500 rupees in 1981 | ₹11655.43 rupees today |
| ₹1,000 rupees in 1981 | ₹23310.85 rupees today |
| ₹5,000 rupees in 1981 | ₹116554.26 rupees today |
| ₹10,000 rupees in 1981 | ₹233108.51 rupees today |
| ₹50,000 rupees in 1981 | ₹1165542.57 rupees today |
| ₹100,000 rupees in 1981 | ₹2331085.14 rupees today |
| ₹500,000 rupees in 1981 | ₹11655425.72 rupees today |
| ₹1,000,000 rupees in 1981 | ₹23310851.44 rupees today |
How to calculate the inflated value of ₹1 in 1981
To calculate the change in value between 1981 and today, we use the following inflation rate formula:
CPI Today / CPI in 1981 x Rupee Value in 1981 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 396.74 x ₹1 = ₹23.31
To buy the same product that you could buy for ₹1 in 1981, you would need ₹23.31 in 2022.
To calculate the cumulative or total inflation rate in the past 41 years between 1981 and 2022, we use the following formula:
CPI in 2022 - CPI in 1981 / CPI in 1981 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 396.74 / 396.74) x 100 = 2231.09%
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 41 years between 2022 and 1981. The average inflation rate was 7.9829223161786%.
Plugging in the values into the formula, we get:
1 (1+ % 7.98/ 100 ) ^ 41 = ₹23.31