You might be interested in calculating the value of ₹1 for the year 1991. Or calculate the value of ₹1 for the year 1996
.₹1 in 1986 is worth ₹15.45 today.
The value of ₹1 from 1986 to 2022
₹1 in 1986 has the purchasing power of about ₹15.45 today, a ₹14.45 increase in 36 years. Between 1986 and today, the rupee experienced an average annual inflation rate of 7.9%, resulting in a cumulative price increase of 1444.76%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1986.
In 1986, the inflation rate was 8.7297%. 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 1986 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1986 to today) | 1444.76% |
| Average inflation rate (from 1986 to today) | 7.9% |
| Converted amount | ₹15.45 |
| Price Difference | ₹14.45 |
| CPI in 1986 | 598.69 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1986 | 8.7297% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1986 | ₹15.45 in 2022 |
Buying power of ₹1 in 1986
If you had ₹1 in your hand in 1986, its adjusted value for inflation today would be ₹15.45. Put another way, you would need ₹15.45 to beat the rising inflation. When ₹1 becomes equivalent to ₹15.45 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 1986 rupees, it's evident how ₹1 loses its worth over 36 years.
Rupee inflation for ₹1 from 1986 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1986 to the year 1986.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1986 | 1 | 8.7297% |
| 1987 | 1.09 | 8.80% |
| 1988 | 1.19 | 9.38% |
| 1989 | 1.27 | 7.07% |
| 1990 | 1.39 | 8.97% |
| 1991 | 1.58 | 13.87% |
| 1992 | 1.77 | 11.79% |
| 1993 | 1.88 | 6.33% |
| 1994 | 2.07 | 10.25% |
| 1995 | 2.28 | 10.22% |
| 1996 | 2.49 | 8.9772% |
| 1997 | 2.67 | 7.1643% |
| 1998 | 3.02 | 13.2308% |
| 1999 | 3.16 | 4.6698% |
| 2000 | 3.29 | 4.0094% |
| 2001 | 3.41 | 3.77% |
| 2002 | 3.56 | 4.30% |
| 2003 | 3.69 | 3.81% |
| 2004 | 3.83 | 3.7673% |
| 2005 | 4 | 4.2463% |
| 2006 | 4.23 | 5.7965% |
| 2007 | 4.5 | 6.3729% |
| 2008 | 4.87 | 8.3493% |
| 2009 | 5.4 | -0.36% |
| 2010 | 6.05 | 1.64% |
| 2011 | 6.59 | 8.91% |
| 2012 | 7.21 | 9.47% |
| 2013 | 7.94 | 10.01% |
| 2014 | 8.47 | 6.66% |
| 2015 | 8.88 | 4.907% |
| 2016 | 9.32 | 4.95% |
| 2017 | 9.63 | 3.33% |
| 2018 | 10.01 | 3.94% |
| 2019 | 10.38 | 3.73% |
| 2020 | 11.07 | 6.62% |
| 2021 | 11.64 | 5.13% |
| 2022 | 12.35 | 6.08% |
Conversion of 1986 rupees to today's price
Based on the 1444.76% change in prices, the following 1986 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1986 | ₹15.45 rupees today |
| ₹5 rupees in 1986 | ₹77.24 rupees today |
| ₹10 rupees in 1986 | ₹154.48 rupees today |
| ₹50 rupees in 1986 | ₹772.38 rupees today |
| ₹100 rupees in 1986 | ₹1544.76 rupees today |
| ₹500 rupees in 1986 | ₹7723.82 rupees today |
| ₹1,000 rupees in 1986 | ₹15447.64 rupees today |
| ₹5,000 rupees in 1986 | ₹77238.2 rupees today |
| ₹10,000 rupees in 1986 | ₹154476.39 rupees today |
| ₹50,000 rupees in 1986 | ₹772381.97 rupees today |
| ₹100,000 rupees in 1986 | ₹1544763.93 rupees today |
| ₹500,000 rupees in 1986 | ₹7723819.67 rupees today |
| ₹1,000,000 rupees in 1986 | ₹15447639.35 rupees today |
How to calculate the inflated value of ₹1 in 1986
To calculate the change in value between 1986 and today, we use the following inflation rate formula:
CPI Today / CPI in 1986 x Rupee Value in 1986 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 598.69 x ₹1 = ₹15.45
To buy the same product that you could buy for ₹1 in 1986, you would need ₹15.45 in 2022.
To calculate the cumulative or total inflation rate in the past 36 years between 1986 and 2022, we use the following formula:
CPI in 2022 - CPI in 1986 / CPI in 1986 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 598.69 / 598.69) x 100 = 1444.76%
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 36 years between 2022 and 1986. The average inflation rate was 7.9006219031894%.
Plugging in the values into the formula, we get:
1 (1+ % 7.9/ 100 ) ^ 36 = ₹15.45