You might be interested in calculating the value of ₹1 for the year 2020.
₹1 in 2015 is worth ₹1.48 today.
The value of ₹1 from 2015 to 2022
₹1 in 2015 has the purchasing power of about ₹1.48 today, a ₹0.48 increase in 7 years. Between 2015 and today, the rupee experienced an average annual inflation rate of 5.8%, resulting in a cumulative price increase of 48.39%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2015.
In 2015, the inflation rate was 4.907%. 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 2015 to 2022
|Cumulative price change (from 2015 to today)||48.39%|
|Average inflation rate (from 2015 to today)||5.8%|
|CPI in 2015||6232.5|
|CPI in 2022||9248.3472|
|Inflation in 2015||4.907%|
|Inflation in 2022||6.08%|
|₹1 in 2015||₹1.48 in 2022|
Buying power of ₹1 in 2015
If you had ₹1 in your hand in 2015, its adjusted value for inflation today would be ₹1.48. Put another way, you would need ₹1.48 to beat the rising inflation. When ₹1 becomes equivalent to ₹1.48 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 2015 rupees, it's evident how ₹1 loses its worth over 7 years.
Rupee inflation for ₹1 from 2015 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 2015 to the year 2015.
|Year||Rupee Value||Inflation Rate|
Conversion of 2015 rupees to today's price
Based on the 48.39% change in prices, the following 2015 amounts are shown in today's rupees:
|Initial value||Today value|
|₹1 rupee in 2015||₹1.48 rupees today|
|₹5 rupees in 2015||₹7.42 rupees today|
|₹10 rupees in 2015||₹14.84 rupees today|
|₹50 rupees in 2015||₹74.19 rupees today|
|₹100 rupees in 2015||₹148.39 rupees today|
|₹500 rupees in 2015||₹741.95 rupees today|
|₹1,000 rupees in 2015||₹1483.89 rupees today|
|₹5,000 rupees in 2015||₹7419.45 rupees today|
|₹10,000 rupees in 2015||₹14838.9 rupees today|
|₹50,000 rupees in 2015||₹74194.52 rupees today|
|₹100,000 rupees in 2015||₹148389.04 rupees today|
|₹500,000 rupees in 2015||₹741945.22 rupees today|
|₹1,000,000 rupees in 2015||₹1483890.45 rupees today|
How to calculate the inflated value of ₹1 in 2015
To calculate the change in value between 2015 and today, we use the following inflation rate formula:
CPI Today / CPI in 2015 x Rupee Value in 2015 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 6232.5 x ₹1 = ₹1.48
To buy the same product that you could buy for ₹1 in 2015, you would need ₹1.48 in 2022.
To calculate the cumulative or total inflation rate in the past 7 years between 2015 and 2022, we use the following formula:
CPI in 2022 - CPI in 2015 / CPI in 2015 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 6232.5 / 6232.5) x 100 = 48.39%
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 7 years between 2022 and 2015. The average inflation rate was 5.8000753297713%.
Plugging in the values into the formula, we get:
1 (1+ % 5.8/ 100 ) ^ 7 = ₹1.48