You might be interested in calculating the value of ₹1 for the year 1990. Or calculate the value of ₹1 for the year 1995
.₹1 in 1985 is worth ₹16.88 today.
The value of ₹1 from 1985 to 2022
₹1 in 1985 has the purchasing power of about ₹16.88 today, a ₹15.88 increase in 37 years. Between 1985 and today, the rupee experienced an average annual inflation rate of 7.94%, resulting in a cumulative price increase of 1588.39%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1985.
In 1985, the inflation rate was 5.5564%. 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 1985 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1985 to today) | 1588.39% |
| Average inflation rate (from 1985 to today) | 7.94% |
| Converted amount | ₹16.88 |
| Price Difference | ₹15.88 |
| CPI in 1985 | 547.76 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1985 | 5.5564% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1985 | ₹16.88 in 2022 |
Buying power of ₹1 in 1985
If you had ₹1 in your hand in 1985, its adjusted value for inflation today would be ₹16.88. Put another way, you would need ₹16.88 to beat the rising inflation. When ₹1 becomes equivalent to ₹16.88 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 1985 rupees, it's evident how ₹1 loses its worth over 37 years.
Rupee inflation for ₹1 from 1985 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1985 to the year 1985.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1985 | 1 | 5.5564% |
| 1986 | 1.09 | 8.73% |
| 1987 | 1.18 | 8.80% |
| 1988 | 1.29 | 9.38% |
| 1989 | 1.39 | 7.07% |
| 1990 | 1.51 | 8.97% |
| 1991 | 1.72 | 13.87% |
| 1992 | 1.92 | 11.79% |
| 1993 | 2.04 | 6.33% |
| 1994 | 2.25 | 10.25% |
| 1995 | 2.48 | 10.22% |
| 1996 | 2.71 | 8.9772% |
| 1997 | 2.9 | 7.1643% |
| 1998 | 3.28 | 13.2308% |
| 1999 | 3.44 | 4.6698% |
| 2000 | 3.57 | 4.0094% |
| 2001 | 3.71 | 3.77% |
| 2002 | 3.87 | 4.30% |
| 2003 | 4.02 | 3.81% |
| 2004 | 4.17 | 3.7673% |
| 2005 | 4.35 | 4.2463% |
| 2006 | 4.6 | 5.7965% |
| 2007 | 4.89 | 6.3729% |
| 2008 | 5.3 | 8.3493% |
| 2009 | 5.87 | -0.36% |
| 2010 | 6.58 | 1.64% |
| 2011 | 7.17 | 8.91% |
| 2012 | 7.84 | 9.47% |
| 2013 | 8.63 | 10.01% |
| 2014 | 9.21 | 6.66% |
| 2015 | 9.66 | 4.907% |
| 2016 | 10.14 | 4.95% |
| 2017 | 10.47 | 3.33% |
| 2018 | 10.89 | 3.94% |
| 2019 | 11.29 | 3.73% |
| 2020 | 12.04 | 6.62% |
| 2021 | 12.66 | 5.13% |
| 2022 | 13.43 | 6.08% |
Conversion of 1985 rupees to today's price
Based on the 1588.39% change in prices, the following 1985 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1985 | ₹16.88 rupees today |
| ₹5 rupees in 1985 | ₹84.42 rupees today |
| ₹10 rupees in 1985 | ₹168.84 rupees today |
| ₹50 rupees in 1985 | ₹844.2 rupees today |
| ₹100 rupees in 1985 | ₹1688.39 rupees today |
| ₹500 rupees in 1985 | ₹8441.97 rupees today |
| ₹1,000 rupees in 1985 | ₹16883.94 rupees today |
| ₹5,000 rupees in 1985 | ₹84419.7 rupees today |
| ₹10,000 rupees in 1985 | ₹168839.4 rupees today |
| ₹50,000 rupees in 1985 | ₹844197.02 rupees today |
| ₹100,000 rupees in 1985 | ₹1688394.04 rupees today |
| ₹500,000 rupees in 1985 | ₹8441970.21 rupees today |
| ₹1,000,000 rupees in 1985 | ₹16883940.41 rupees today |
How to calculate the inflated value of ₹1 in 1985
To calculate the change in value between 1985 and today, we use the following inflation rate formula:
CPI Today / CPI in 1985 x Rupee Value in 1985 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 547.76 x ₹1 = ₹16.88
To buy the same product that you could buy for ₹1 in 1985, you would need ₹16.88 in 2022.
To calculate the cumulative or total inflation rate in the past 37 years between 1985 and 2022, we use the following formula:
CPI in 2022 - CPI in 1985 / CPI in 1985 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 547.76 / 547.76) x 100 = 1588.39%
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 37 years between 2022 and 1985. The average inflation rate was 7.9381494112812%.
Plugging in the values into the formula, we get:
1 (1+ % 7.94/ 100 ) ^ 37 = ₹16.88