# 1996 Inflation Calculator

Amount in 1996:

RESULT: \$1 in 1996 is worth \$1.89 today.

You might be interested in calculating the value of \$1 for the year 2001. Or calculate the value of \$1 for the year 2006

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# \$1 in 1996 is worth \$1.89 today.

## The value of \$1 from 1996 to 2022

\$1 in 1996 has the purchasing power of about \$1.89 today, a \$0.89 increase in 26 years. Between 1996 and today, the dollar experienced an average annual inflation rate of 2.48%, resulting in a cumulative price increase of 88.83%.

According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1996.

In 1996, the inflation rate was 13.55%. Inflation is now 2.93% higher than it was last year. If this figure holds true, \$1 today will be worth \$3.93 next year in purchasing power.

## Inflation from 1996 to 2022

Summary Value
Cumulative price change (from 1996 to today) 88.83%
Average inflation rate (from 1996 to today) 2.48%
Converted amount \$1.89
Price Difference \$0.89
CPI in 1996 156.9
CPI in 2022 296.276
Inflation in 1996 13.55%
Inflation in 2022 2.93%
\$1 in 1996 \$1.89 in 2022

## Buying power of \$1 in 1996

If you had \$1 in your hand in 1996, its adjusted value for inflation today would be \$1.89. Put another way, you would need \$1.89 to beat the rising inflation. When \$1 becomes equivalent to \$1.89 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 1996 dollars, it's evident how \$1 loses its worth over 26 years.

## Dollar inflation for \$1 from 1996 to 2022

The below tabular column shows the effect of inflation on \$1 in the year 1996 to the year 1996.

Year Dollar Value Inflation Rate
1996 1 13.55%
1997 1.02 2.29%
1998 1.04 1.56%
1999 1.06 2.21%
2000 1.1 3.36%
2001 1.13 2.85%
2002 1.15 1.58%
2003 1.17 2.28%
2004 1.2 2.66%
2005 1.25 3.39%
2006 1.29 3.23%
2007 1.32 2.85%
2008 1.37 3.84%
2009 1.37 -0.36%
2010 1.39 1.64%
2011 1.43 3.16%
2012 1.46 2.07%
2013 1.49 1.46%
2014 1.51 1.62%
2015 1.51 0.12%
2016 1.53 1.26%
2017 1.56 2.13%
2018 1.6 2.49%
2019 1.63 1.76%
2020 1.65 1.23%
2021 1.73 4.70%
2022 1.89 8.52%

## Conversion of 1996 dollars to today's price

Based on the 88.83% change in prices, the following 1996 amounts are shown in today's dollars:

Initial value Today value
\$1 dollar in 1996 \$1.89 dollars today
\$5 dollars in 1996 \$9.44 dollars today
\$10 dollars in 1996 \$18.88 dollars today
\$50 dollars in 1996 \$94.42 dollars today
\$100 dollars in 1996 \$188.83 dollars today
\$500 dollars in 1996 \$944.16 dollars today
\$1,000 dollars in 1996 \$1888.31 dollars today
\$5,000 dollars in 1996 \$9441.56 dollars today
\$10,000 dollars in 1996 \$18883.11 dollars today
\$50,000 dollars in 1996 \$94415.55 dollars today
\$100,000 dollars in 1996 \$188831.1 dollars today
\$500,000 dollars in 1996 \$944155.51 dollars today
\$1,000,000 dollars in 1996 \$1888311.03 dollars today

## How to calculate the inflated value of \$1 in 1996

To calculate the change in value between 1996 and today, we use the following inflation rate formula:

CPI Today / CPI in 1996 x USD Value in 1996 = Current USD Value

By plugging the values into the formula above, we get:

296.276/ 156.9 x \$1 = \$1.89

To buy the same product that you could buy for \$1 in 1996, you would need \$1.89 in 2022.

### To calculate the cumulative or total inflation rate in the past 26 years between 1996 and 2022, we use the following formula:

CPI in 2022 - CPI in 1996 / CPI in 1996 x 100 = Cumulative Inflation Rate

By inserting the values to this equation, we get:

( 296.276 - 156.9 / 156.9) x 100 = 88.83%

### 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 26 years between 2022 and 1996. The average inflation rate was 2.475067405367%.

Plugging in the values into the formula, we get:

1 (1+ % 2.48/ 100 ) ^ 26 = \$1.89