You might be interested in calculating the value of ₹1 for the year 1998. Or calculate the value of ₹1 for the year 2003
.₹1 in 1993 is worth ₹8.18 today.
The value of ₹1 from 1993 to 2022
₹1 in 1993 has the purchasing power of about ₹8.18 today, a ₹7.18 increase in 29 years. Between 1993 and today, the rupee experienced an average annual inflation rate of 7.52%, resulting in a cumulative price increase of 718.18%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1993.
In 1993, the inflation rate was 6.3269%. 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 1993 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1993 to today) | 718.18% |
| Average inflation rate (from 1993 to today) | 7.52% |
| Converted amount | ₹8.18 |
| Price Difference | ₹7.18 |
| CPI in 1993 | 1130.35 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1993 | 6.3269% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1993 | ₹8.18 in 2022 |
Buying power of ₹1 in 1993
If you had ₹1 in your hand in 1993, its adjusted value for inflation today would be ₹8.18. Put another way, you would need ₹8.18 to beat the rising inflation. When ₹1 becomes equivalent to ₹8.18 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 1993 rupees, it's evident how ₹1 loses its worth over 29 years.
Rupee inflation for ₹1 from 1993 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1993 to the year 1993.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1993 | 1 | 6.3269% |
| 1994 | 1.1 | 10.25% |
| 1995 | 1.22 | 10.22% |
| 1996 | 1.32 | 8.9772% |
| 1997 | 1.42 | 7.1643% |
| 1998 | 1.61 | 13.2308% |
| 1999 | 1.68 | 4.6698% |
| 2000 | 1.75 | 4.0094% |
| 2001 | 1.82 | 3.77% |
| 2002 | 1.89 | 4.30% |
| 2003 | 1.97 | 3.81% |
| 2004 | 2.04 | 3.7673% |
| 2005 | 2.13 | 4.2463% |
| 2006 | 2.25 | 5.7965% |
| 2007 | 2.39 | 6.3729% |
| 2008 | 2.59 | 8.3493% |
| 2009 | 2.87 | -0.36% |
| 2010 | 3.22 | 1.64% |
| 2011 | 3.51 | 8.91% |
| 2012 | 3.84 | 9.47% |
| 2013 | 4.22 | 10.01% |
| 2014 | 4.5 | 6.66% |
| 2015 | 4.73 | 4.907% |
| 2016 | 4.96 | 4.95% |
| 2017 | 5.12 | 3.33% |
| 2018 | 5.33 | 3.94% |
| 2019 | 5.53 | 3.73% |
| 2020 | 5.89 | 6.62% |
| 2021 | 6.19 | 5.13% |
| 2022 | 6.57 | 6.08% |
Conversion of 1993 rupees to today's price
Based on the 718.18% change in prices, the following 1993 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1993 | ₹8.18 rupees today |
| ₹5 rupees in 1993 | ₹40.91 rupees today |
| ₹10 rupees in 1993 | ₹81.82 rupees today |
| ₹50 rupees in 1993 | ₹409.09 rupees today |
| ₹100 rupees in 1993 | ₹818.18 rupees today |
| ₹500 rupees in 1993 | ₹4090.92 rupees today |
| ₹1,000 rupees in 1993 | ₹8181.84 rupees today |
| ₹5,000 rupees in 1993 | ₹40909.22 rupees today |
| ₹10,000 rupees in 1993 | ₹81818.44 rupees today |
| ₹50,000 rupees in 1993 | ₹409092.19 rupees today |
| ₹100,000 rupees in 1993 | ₹818184.39 rupees today |
| ₹500,000 rupees in 1993 | ₹4090921.93 rupees today |
| ₹1,000,000 rupees in 1993 | ₹8181843.85 rupees today |
How to calculate the inflated value of ₹1 in 1993
To calculate the change in value between 1993 and today, we use the following inflation rate formula:
CPI Today / CPI in 1993 x Rupee Value in 1993 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 1130.35 x ₹1 = ₹8.18
To buy the same product that you could buy for ₹1 in 1993, you would need ₹8.18 in 2022.
To calculate the cumulative or total inflation rate in the past 29 years between 1993 and 2022, we use the following formula:
CPI in 2022 - CPI in 1993 / CPI in 1993 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 1130.35 / 1130.35) x 100 = 718.18%
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 29 years between 2022 and 1993. The average inflation rate was 7.5171211066862%.
Plugging in the values into the formula, we get:
1 (1+ % 7.52/ 100 ) ^ 29 = ₹8.18