# 2002 Inflation Calculator

Amount in 2002:

RESULT: \$1 in 2002 is worth \$1.65 today.

You might be interested in calculating the value of \$1 for the year 2007. Or calculate the value of \$1 for the year 2012

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# \$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