You might be interested in calculating the value of ₹1 for the year 2015. Or calculate the value of ₹1 for the year 2020.
₹1 in 2010 is worth ₹2.24 today.
The value of ₹1 from 2010 to 2022
₹1 in 2010 has the purchasing power of about ₹2.24 today, a ₹1.24 increase in 12 years. Between 2010 and today, the rupee experienced an average annual inflation rate of 6.96%, resulting in a cumulative price increase of 124.21%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2010.
In 2010, the inflation rate was 11.9894%. 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 2010 to 2022
|Cumulative price change (from 2010 to today)||124.21%|
|Average inflation rate (from 2010 to today)||6.96%|
|CPI in 2010||4124.77|
|CPI in 2022||9248.3472|
|Inflation in 2010||11.9894%|
|Inflation in 2022||6.08%|
|₹1 in 2010||₹2.24 in 2022|
Buying power of ₹1 in 2010
If you had ₹1 in your hand in 2010, its adjusted value for inflation today would be ₹2.24. Put another way, you would need ₹2.24 to beat the rising inflation. When ₹1 becomes equivalent to ₹2.24 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 2010 rupees, it's evident how ₹1 loses its worth over 12 years.
Rupee inflation for ₹1 from 2010 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 2010 to the year 2010.
|Year||Rupee Value||Inflation Rate|
Conversion of 2010 rupees to today's price
Based on the 124.21% change in prices, the following 2010 amounts are shown in today's rupees:
|Initial value||Today value|
|₹1 rupee in 2010||₹2.24 rupees today|
|₹5 rupees in 2010||₹11.21 rupees today|
|₹10 rupees in 2010||₹22.42 rupees today|
|₹50 rupees in 2010||₹112.11 rupees today|
|₹100 rupees in 2010||₹224.21 rupees today|
|₹500 rupees in 2010||₹1121.07 rupees today|
|₹1,000 rupees in 2010||₹2242.15 rupees today|
|₹5,000 rupees in 2010||₹11210.74 rupees today|
|₹10,000 rupees in 2010||₹22421.49 rupees today|
|₹50,000 rupees in 2010||₹112107.43 rupees today|
|₹100,000 rupees in 2010||₹224214.86 rupees today|
|₹500,000 rupees in 2010||₹1121074.29 rupees today|
|₹1,000,000 rupees in 2010||₹2242148.58 rupees today|
How to calculate the inflated value of ₹1 in 2010
To calculate the change in value between 2010 and today, we use the following inflation rate formula:
CPI Today / CPI in 2010 x Rupee Value in 2010 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 4124.77 x ₹1 = ₹2.24
To buy the same product that you could buy for ₹1 in 2010, you would need ₹2.24 in 2022.
To calculate the cumulative or total inflation rate in the past 12 years between 2010 and 2022, we use the following formula:
CPI in 2022 - CPI in 2010 / CPI in 2010 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 4124.77 / 4124.77) x 100 = 124.21%
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
- 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 12 years between 2022 and 2010. The average inflation rate was 6.9601571613846%.
Plugging in the values into the formula, we get:
1 (1+ % 6.96/ 100 ) ^ 12 = ₹2.24