You might be interested in calculating the value of ₹1 for the year 2007. Or calculate the value of ₹1 for the year 2012
.₹1 in 2002 is worth ₹4.17 today.
The value of ₹1 from 2002 to 2022
₹1 in 2002 has the purchasing power of about ₹4.17 today, a ₹3.17 increase in 20 years. Between 2002 and today, the rupee experienced an average annual inflation rate of 7.4%, resulting in a cumulative price increase of 316.75%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2002.
In 2002, the inflation rate was 4.2972%. 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 2002 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 2002 to today) | 316.75% |
| Average inflation rate (from 2002 to today) | 7.4% |
| Converted amount | ₹4.17 |
| Price Difference | ₹3.17 |
| CPI in 2002 | 2219.14 |
| CPI in 2022 | 9248.3472 |
| Inflation in 2002 | 4.2972% |
| Inflation in 2022 | 6.08% |
| ₹1 in 2002 | ₹4.17 in 2022 |
Buying power of ₹1 in 2002
If you had ₹1 in your hand in 2002, its adjusted value for inflation today would be ₹4.17. Put another way, you would need ₹4.17 to beat the rising inflation. When ₹1 becomes equivalent to ₹4.17 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 2002 rupees, it's evident how ₹1 loses its worth over 20 years.
Rupee inflation for ₹1 from 2002 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 2002 to the year 2002.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 2002 | 1 | 4.2972% |
| 2003 | 1.04 | 3.81% |
| 2004 | 1.08 | 3.7673% |
| 2005 | 1.12 | 4.2463% |
| 2006 | 1.19 | 5.7965% |
| 2007 | 1.26 | 6.3729% |
| 2008 | 1.37 | 8.3493% |
| 2009 | 1.52 | -0.36% |
| 2010 | 1.7 | 1.64% |
| 2011 | 1.85 | 8.91% |
| 2012 | 2.03 | 9.47% |
| 2013 | 2.23 | 10.01% |
| 2014 | 2.38 | 6.66% |
| 2015 | 2.5 | 4.907% |
| 2016 | 2.62 | 4.95% |
| 2017 | 2.71 | 3.33% |
| 2018 | 2.81 | 3.94% |
| 2019 | 2.92 | 3.73% |
| 2020 | 3.11 | 6.62% |
| 2021 | 3.27 | 5.13% |
| 2022 | 3.47 | 6.08% |
Conversion of 2002 rupees to today's price
Based on the 316.75% change in prices, the following 2002 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 2002 | ₹4.17 rupees today |
| ₹5 rupees in 2002 | ₹20.84 rupees today |
| ₹10 rupees in 2002 | ₹41.68 rupees today |
| ₹50 rupees in 2002 | ₹208.38 rupees today |
| ₹100 rupees in 2002 | ₹416.75 rupees today |
| ₹500 rupees in 2002 | ₹2083.77 rupees today |
| ₹1,000 rupees in 2002 | ₹4167.54 rupees today |
| ₹5,000 rupees in 2002 | ₹20837.68 rupees today |
| ₹10,000 rupees in 2002 | ₹41675.37 rupees today |
| ₹50,000 rupees in 2002 | ₹208376.83 rupees today |
| ₹100,000 rupees in 2002 | ₹416753.66 rupees today |
| ₹500,000 rupees in 2002 | ₹2083768.31 rupees today |
| ₹1,000,000 rupees in 2002 | ₹4167536.61 rupees today |
How to calculate the inflated value of ₹1 in 2002
To calculate the change in value between 2002 and today, we use the following inflation rate formula:
CPI Today / CPI in 2002 x Rupee Value in 2002 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 2219.14 x ₹1 = ₹4.17
To buy the same product that you could buy for ₹1 in 2002, you would need ₹4.17 in 2022.
To calculate the cumulative or total inflation rate in the past 20 years between 2002 and 2022, we use the following formula:
CPI in 2022 - CPI in 2002 / CPI in 2002 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 2219.14 / 2219.14) x 100 = 316.75%
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 20 years between 2022 and 2002. The average inflation rate was 7.3974503505136%.
Plugging in the values into the formula, we get:
1 (1+ % 7.4/ 100 ) ^ 20 = ₹4.17