$1 in 2002 is worth $1.65 today.
The value of $1 from 2002 to 2022
$1 in 2002 has the purchasing power of about $1.65 today, a $0.65 increase in 20 years. Between 2002 and today, the dollar experienced an average annual inflation rate of 2.53%, resulting in a cumulative price increase of 64.69%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2002.
In 2002, the inflation rate was 1.59%. 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 2002 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 2002 to today) | 64.69% |
| Average inflation rate (from 2002 to today) | 2.53% |
| Converted amount | $1.65 |
| Price Difference | $0.65 |
| CPI in 2002 | 179.9 |
| CPI in 2022 | 296.276 |
| Inflation in 2002 | 1.59% |
| Inflation in 2022 | 8.52% |
| $1 in 2002 | $1.65 in 2022 |
Buying power of $1 in 2002
If you had $1 in your hand in 2002, its adjusted value for inflation today would be $1.65. Put another way, you would need $1.65 to beat the rising inflation. When $1 becomes equivalent to $1.65 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 2002 dollars, it's evident how $1 loses its worth over 20 years.
Dollar inflation for $1 from 2002 to 2022
The below tabular column shows the effect of inflation on $1 in the year 2002 to the year 2002.
| Year | Dollar Value | Inflation Rate |
|---|---|---|
| 2002 | 1 | 1.59% |
| 2003 | 1.02 | 2.28% |
| 2004 | 1.05 | 2.66% |
| 2005 | 1.09 | 3.39% |
| 2006 | 1.12 | 3.23% |
| 2007 | 1.15 | 2.85% |
| 2008 | 1.2 | 3.84% |
| 2009 | 1.19 | -0.36% |
| 2010 | 1.21 | 1.64% |
| 2011 | 1.25 | 3.16% |
| 2012 | 1.28 | 2.07% |
| 2013 | 1.3 | 1.46% |
| 2014 | 1.32 | 1.62% |
| 2015 | 1.32 | 0.12% |
| 2016 | 1.33 | 1.26% |
| 2017 | 1.36 | 2.13% |
| 2018 | 1.4 | 2.49% |
| 2019 | 1.42 | 1.76% |
| 2020 | 1.44 | 1.23% |
| 2021 | 1.51 | 4.70% |
| 2022 | 1.65 | 8.52% |
Conversion of 2002 dollars to today's price
Based on the 64.69% change in prices, the following 2002 amounts are shown in today's dollars:
| Initial value | Today value |
|---|---|
| $1 dollar in 2002 | $1.65 dollars today |
| $5 dollars in 2002 | $8.23 dollars today |
| $10 dollars in 2002 | $16.47 dollars today |
| $50 dollars in 2002 | $82.34 dollars today |
| $100 dollars in 2002 | $164.69 dollars today |
| $500 dollars in 2002 | $823.45 dollars today |
| $1,000 dollars in 2002 | $1646.89 dollars today |
| $5,000 dollars in 2002 | $8234.46 dollars today |
| $10,000 dollars in 2002 | $16468.93 dollars today |
| $50,000 dollars in 2002 | $82344.64 dollars today |
| $100,000 dollars in 2002 | $164689.27 dollars today |
| $500,000 dollars in 2002 | $823446.36 dollars today |
| $1,000,000 dollars in 2002 | $1646892.72 dollars today |
How to calculate the inflated value of $1 in 2002
To calculate the change in value between 2002 and today, we use the following inflation rate formula:
CPI Today / CPI in 2002 x USD Value in 2002 = Current USD Value
By plugging the values into the formula above, we get:
296.276/ 179.9 x $1 = $1.65
To buy the same product that you could buy for $1 in 2002, you would need $1.65 in 2022.
To calculate the cumulative or total inflation rate in the past 20 years between 2002 and 2022, we use the following formula:
CPI in 2022 - CPI in 2002 / CPI in 2002 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 296.276 - 179.9 / 179.9) x 100 = 64.69%
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 20 years between 2022 and 2002. The average inflation rate was 2.5258233075284%.
Plugging in the values into the formula, we get:
1 (1+ % 2.53/ 100 ) ^ 20 = $1.65