$1 in 1975 is worth $5.51 today.
The value of $1 from 1975 to 2022
$1 in 1975 has the purchasing power of about $5.51 today, a $4.51 increase in 47 years. Between 1975 and today, the dollar experienced an average annual inflation rate of 3.7%, resulting in a cumulative price increase of 450.7%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1975.
In 1975, the inflation rate was 9.14%. Inflation is now 8.52% higher than it was last year. If this figure holds true, $1 today will be worth $9.52 next year in purchasing power.
Inflation from 1975 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1975 to today) | 450.7% |
| Average inflation rate (from 1975 to today) | 3.7% |
| Converted amount | $5.51 |
| Price Difference | $4.51 |
| CPI in 1975 | 53.8 |
| CPI in 2022 | 296.276 |
| Inflation in 1975 | 9.14% |
| Inflation in 2022 | 8.52% |
| $1 in 1975 | $5.51 in 2022 |
Buying power of $1 in 1975
If you had $1 in your hand in 1975, its adjusted value for inflation today would be $5.51. Put another way, you would need $5.51 to beat the rising inflation. When $1 becomes equivalent to $5.51 over time, the "real value" of a single US dollar decreases. In other words, a dollar will pay for fewer items at the store.
This effect explains how inflation gradually erodes the value of a dollar. By calculating the value in 1975 dollars, it's evident how $1 loses its worth over 47 years.
Dollar inflation for $1 from 1975 to 2022
The below tabular column shows the effect of inflation on $1 in the year 1975 to the year 1975.
| Year | Dollar Value | Inflation Rate |
|---|---|---|
| 1975 | 1 | 9.14% |
| 1976 | 1.08 | 5.76% |
| 1977 | 1.16 | 6.50% |
| 1978 | 1.25 | 7.59% |
| 1979 | 1.39 | 11.35% |
| 1980 | 1.58 | 13.50% |
| 1981 | 1.74 | 10.32% |
| 1982 | 1.84 | 6.16% |
| 1983 | 1.9 | 3.21% |
| 1984 | 1.99 | 4.32% |
| 1985 | 2.06 | 3.56% |
| 1986 | 2.1 | 1.86% |
| 1987 | 2.17 | 3.65% |
| 1988 | 2.26 | 4.14% |
| 1989 | 2.37 | 4.82% |
| 1990 | 2.5 | 5.40% |
| 1991 | 2.6 | 4.21% |
| 1992 | 2.68 | 3.01% |
| 1993 | 2.76 | 2.99% |
| 1994 | 2.83 | 2.56% |
| 1995 | 2.91 | 2.83% |
| 1996 | 3 | 2.95% |
| 1997 | 3.07 | 2.29% |
| 1998 | 3.12 | 1.56% |
| 1999 | 3.18 | 2.21% |
| 2000 | 3.29 | 3.36% |
| 2001 | 3.38 | 2.85% |
| 2002 | 3.44 | 1.58% |
| 2003 | 3.52 | 2.28% |
| 2004 | 3.61 | 2.66% |
| 2005 | 3.73 | 3.39% |
| 2006 | 3.85 | 3.23% |
| 2007 | 3.96 | 2.85% |
| 2008 | 4.12 | 3.84% |
| 2009 | 4.1 | -0.36% |
| 2010 | 4.17 | 1.64% |
| 2011 | 4.3 | 3.16% |
| 2012 | 4.39 | 2.07% |
| 2013 | 4.45 | 1.46% |
| 2014 | 4.52 | 1.62% |
| 2015 | 4.53 | 0.12% |
| 2016 | 4.59 | 1.26% |
| 2017 | 4.69 | 2.13% |
| 2018 | 4.8 | 2.49% |
| 2019 | 4.89 | 1.76% |
| 2020 | 4.95 | 1.23% |
| 2021 | 5.18 | 4.70% |
| 2022 | 5.67 | 8.52% |
Conversion of 1975 dollars to today's price
Based on the 450.7% change in prices, the following 1975 amounts are shown in today's dollars:
| Initial value | Today value |
|---|---|
| $1 dollar in 1975 | $5.51 dollars today |
| $5 dollars in 1975 | $27.53 dollars today |
| $10 dollars in 1975 | $55.07 dollars today |
| $50 dollars in 1975 | $275.35 dollars today |
| $100 dollars in 1975 | $550.7 dollars today |
| $500 dollars in 1975 | $2753.49 dollars today |
| $1,000 dollars in 1975 | $5506.99 dollars today |
| $5,000 dollars in 1975 | $27534.94 dollars today |
| $10,000 dollars in 1975 | $55069.89 dollars today |
| $50,000 dollars in 1975 | $275349.44 dollars today |
| $100,000 dollars in 1975 | $550698.88 dollars today |
| $500,000 dollars in 1975 | $2753494.42 dollars today |
| $1,000,000 dollars in 1975 | $5506988.85 dollars today |
How to calculate the inflated value of $1 in 1975
To calculate the change in value between 1975 and today, we use the following inflation rate formula:
CPI Today / CPI in 1975 x USD Value in 1975 = Current USD Value
By plugging the values into the formula above, we get:
296.276/ 53.8 x $1 = $5.51
To buy the same product that you could buy for $1 in 1975, you would need $5.51 in 2022.
To calculate the cumulative or total inflation rate in the past 47 years between 1975 and 2022, we use the following formula:
CPI in 2022 - CPI in 1975 / CPI in 1975 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 296.276 - 53.8 / 53.8) x 100 = 450.7%
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 47 years between 2022 and 1975. The average inflation rate was 3.6965080396575%.
Plugging in the values into the formula, we get:
1 (1+ % 3.7/ 100 ) ^ 47 = $5.51