$10 in 1982 is worth $30.7 today.
The value of $10 from 1982 to 2022
$10 in 1982 has the purchasing power of about $30.7 today, a $20.7 increase in 40 years. Between 1982 and today, the dollar experienced an average annual inflation rate of 2.84%, resulting in a cumulative price increase of 207.02%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1982.
In 1982, the inflation rate was 13.55%. Inflation is now 6.13% higher than it was last year. If this figure holds true, $10 today will be worth $71.3 next year in purchasing power.
Inflation from 1982 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1982 to today) | 207.02% |
| Average inflation rate (from 1982 to today) | 2.84% |
| Converted amount | $30.7 |
| Price Difference | $20.7 |
| CPI in 1982 | 96.5 |
| CPI in 2022 | 296.276 |
| Inflation in 1982 | 13.55% |
| Inflation in 2022 | 6.13% |
| $10 in 1982 | $30.7 in 2022 |
Buying power of $10 in 1982
If you had $10 in your hand in 1982, its adjusted value for inflation today would be $30.7. Put another way, you would need $30.7 to beat the rising inflation. When $10 becomes equivalent to $30.7 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 1982 dollars, it's evident how $10 loses its worth over 40 years.
Dollar inflation for $10 from 1982 to 2022
The below tabular column shows the effect of inflation on $10 in the year 1982 to the year 1982.
| Year | Dollar Value | Inflation Rate |
|---|---|---|
| 1982 | 10 | 13.55% |
| 1983 | 10.32 | 3.21% |
| 1984 | 10.77 | 4.32% |
| 1985 | 11.15 | 3.56% |
| 1986 | 11.36 | 1.86% |
| 1987 | 11.77 | 3.65% |
| 1988 | 12.25 | 4.14% |
| 1989 | 12.85 | 4.82% |
| 1990 | 13.54 | 5.40% |
| 1991 | 14.11 | 4.21% |
| 1992 | 14.54 | 3.01% |
| 1993 | 14.97 | 2.99% |
| 1994 | 15.36 | 2.56% |
| 1995 | 15.79 | 2.83% |
| 1996 | 16.25 | 2.95% |
| 1997 | 16.63 | 2.29% |
| 1998 | 16.89 | 1.56% |
| 1999 | 17.26 | 2.21% |
| 2000 | 17.84 | 3.36% |
| 2001 | 18.35 | 2.85% |
| 2002 | 18.64 | 1.58% |
| 2003 | 19.06 | 2.28% |
| 2004 | 19.57 | 2.66% |
| 2005 | 20.24 | 3.39% |
| 2006 | 20.89 | 3.23% |
| 2007 | 21.49 | 2.85% |
| 2008 | 22.31 | 3.84% |
| 2009 | 22.23 | -0.36% |
| 2010 | 22.6 | 1.64% |
| 2011 | 23.31 | 3.16% |
| 2012 | 23.79 | 2.07% |
| 2013 | 24.14 | 1.46% |
| 2014 | 24.53 | 1.62% |
| 2015 | 24.56 | 0.12% |
| 2016 | 24.87 | 1.26% |
| 2017 | 25.4 | 2.13% |
| 2018 | 26.02 | 2.49% |
| 2019 | 26.49 | 1.76% |
| 2020 | 26.82 | 1.23% |
| 2021 | 28.08 | 4.70% |
| 2022 | 30.73 | 8.52% |
Conversion of 1982 dollars to today's price
Based on the 207.02% change in prices, the following 1982 amounts are shown in today's dollars:
| Initial value | Today value |
|---|---|
| $1 dollar in 1982 | $3.07 dollars today |
| $5 dollars in 1982 | $15.35 dollars today |
| $10 dollars in 1982 | $30.7 dollars today |
| $50 dollars in 1982 | $153.51 dollars today |
| $100 dollars in 1982 | $307.02 dollars today |
| $500 dollars in 1982 | $1535.11 dollars today |
| $1,000 dollars in 1982 | $3070.22 dollars today |
| $5,000 dollars in 1982 | $15351.09 dollars today |
| $10,000 dollars in 1982 | $30702.18 dollars today |
| $50,000 dollars in 1982 | $153510.88 dollars today |
| $100,000 dollars in 1982 | $307021.76 dollars today |
| $500,000 dollars in 1982 | $1535108.81 dollars today |
| $1,000,000 dollars in 1982 | $3070217.62 dollars today |
How to calculate the inflated value of $10 in 1982
To calculate the change in value between 1982 and today, we use the following inflation rate formula:
CPI Today / CPI in 1982 x USD Value in 1982 = Current USD Value
By plugging the values into the formula above, we get:
296.276/ 96.5 x $10 = $30.7
To buy the same product that you could buy for $10 in 1982, you would need $30.7 in 2022.
To calculate the cumulative or total inflation rate in the past 40 years between 1982 and 2022, we use the following formula:
CPI in 2022 - CPI in 1982 / CPI in 1982 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 296.276 - 96.5 / 96.5) x 100 = 207.02%
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 40 years between 2022 and 1982. The average inflation rate was 2.8440637709636%.
Plugging in the values into the formula, we get:
10 (1+ % 2.84/ 100 ) ^ 40 = $30.7