You might be interested in calculating the value of ₹1 for the year 2018.
₹1 in 2013 is worth ₹1.67 today.
The value of ₹1 from 2013 to 2022
₹1 in 2013 has the purchasing power of about ₹1.67 today, a ₹0.67 increase in 9 years. Between 2013 and today, the rupee experienced an average annual inflation rate of 5.89%, resulting in a cumulative price increase of 67.31%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2013.
In 2013, the inflation rate was 10.0179%. 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 2013 to 2022
|Cumulative price change (from 2013 to today)||67.31%|
|Average inflation rate (from 2013 to today)||5.89%|
|CPI in 2013||5527.68|
|CPI in 2022||9248.3472|
|Inflation in 2013||10.0179%|
|Inflation in 2022||6.08%|
|₹1 in 2013||₹1.67 in 2022|
Buying power of ₹1 in 2013
If you had ₹1 in your hand in 2013, its adjusted value for inflation today would be ₹1.67. Put another way, you would need ₹1.67 to beat the rising inflation. When ₹1 becomes equivalent to ₹1.67 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 2013 rupees, it's evident how ₹1 loses its worth over 9 years.
Rupee inflation for ₹1 from 2013 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 2013 to the year 2013.
|Year||Rupee Value||Inflation Rate|
Conversion of 2013 rupees to today's price
Based on the 67.31% change in prices, the following 2013 amounts are shown in today's rupees:
|Initial value||Today value|
|₹1 rupee in 2013||₹1.67 rupees today|
|₹5 rupees in 2013||₹8.37 rupees today|
|₹10 rupees in 2013||₹16.73 rupees today|
|₹50 rupees in 2013||₹83.65 rupees today|
|₹100 rupees in 2013||₹167.31 rupees today|
|₹500 rupees in 2013||₹836.55 rupees today|
|₹1,000 rupees in 2013||₹1673.1 rupees today|
|₹5,000 rupees in 2013||₹8365.49 rupees today|
|₹10,000 rupees in 2013||₹16730.97 rupees today|
|₹50,000 rupees in 2013||₹83654.87 rupees today|
|₹100,000 rupees in 2013||₹167309.74 rupees today|
|₹500,000 rupees in 2013||₹836548.71 rupees today|
|₹1,000,000 rupees in 2013||₹1673097.43 rupees today|
How to calculate the inflated value of ₹1 in 2013
To calculate the change in value between 2013 and today, we use the following inflation rate formula:
CPI Today / CPI in 2013 x Rupee Value in 2013 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 5527.68 x ₹1 = ₹1.67
To buy the same product that you could buy for ₹1 in 2013, you would need ₹1.67 in 2022.
To calculate the cumulative or total inflation rate in the past 9 years between 2013 and 2022, we use the following formula:
CPI in 2022 - CPI in 2013 / CPI in 2013 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 5527.68 / 5527.68) x 100 = 67.31%
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 9 years between 2022 and 2013. The average inflation rate was 5.8853051264332%.
Plugging in the values into the formula, we get:
1 (1+ % 5.89/ 100 ) ^ 9 = ₹1.67