$10 in 1975 is worth $55.07 today.
The value of $10 from 1975 to 2022
$10 in 1975 has the purchasing power of about $55.07 today, a $45.07 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, $10 today will be worth $95.2 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 | $55.07 |
| Price Difference | $45.07 |
| CPI in 1975 | 53.8 |
| CPI in 2022 | 296.276 |
| Inflation in 1975 | 9.14% |
| Inflation in 2022 | 8.52% |
| $10 in 1975 | $55.07 in 2022 |
Buying power of $10 in 1975
If you had $10 in your hand in 1975, its adjusted value for inflation today would be $55.07. Put another way, you would need $55.07 to beat the rising inflation. When $10 becomes equivalent to $55.07 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 $10 loses its worth over 47 years.
Dollar inflation for $10 from 1975 to 2022
The below tabular column shows the effect of inflation on $10 in the year 1975 to the year 1975.
| Year | Dollar Value | Inflation Rate |
|---|---|---|
| 1975 | 10 | 9.14% |
| 1976 | 10.76 | 5.76% |
| 1977 | 11.58 | 6.50% |
| 1978 | 12.47 | 7.59% |
| 1979 | 13.87 | 11.35% |
| 1980 | 15.75 | 13.50% |
| 1981 | 17.38 | 10.32% |
| 1982 | 18.44 | 6.16% |
| 1983 | 19.04 | 3.21% |
| 1984 | 19.86 | 4.32% |
| 1985 | 20.56 | 3.56% |
| 1986 | 20.95 | 1.86% |
| 1987 | 21.72 | 3.65% |
| 1988 | 22.6 | 4.14% |
| 1989 | 23.69 | 4.82% |
| 1990 | 24.97 | 5.40% |
| 1991 | 26.03 | 4.21% |
| 1992 | 26.82 | 3.01% |
| 1993 | 27.61 | 2.99% |
| 1994 | 28.33 | 2.56% |
| 1995 | 29.13 | 2.83% |
| 1996 | 29.98 | 2.95% |
| 1997 | 30.68 | 2.29% |
| 1998 | 31.16 | 1.56% |
| 1999 | 31.84 | 2.21% |
| 2000 | 32.91 | 3.36% |
| 2001 | 33.84 | 2.85% |
| 2002 | 34.38 | 1.58% |
| 2003 | 35.16 | 2.28% |
| 2004 | 36.1 | 2.66% |
| 2005 | 37.33 | 3.39% |
| 2006 | 38.53 | 3.23% |
| 2007 | 39.63 | 2.85% |
| 2008 | 41.15 | 3.84% |
| 2009 | 41.01 | -0.36% |
| 2010 | 41.68 | 1.64% |
| 2011 | 42.99 | 3.16% |
| 2012 | 43.88 | 2.07% |
| 2013 | 44.53 | 1.46% |
| 2014 | 45.25 | 1.62% |
| 2015 | 45.3 | 0.12% |
| 2016 | 45.87 | 1.26% |
| 2017 | 46.85 | 2.13% |
| 2018 | 48 | 2.49% |
| 2019 | 48.87 | 1.76% |
| 2020 | 49.47 | 1.23% |
| 2021 | 51.79 | 4.70% |
| 2022 | 56.69 | 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 $10 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 $10 = $55.07
To buy the same product that you could buy for $10 in 1975, you would need $55.07 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 $10 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:
10 (1+ % 3.7/ 100 ) ^ 47 = $55.07