$1 in 2004 is worth $1.57 today.
The value of $1 from 2004 to 2022
$1 in 2004 has the purchasing power of about $1.57 today, a $0.57 increase in 18 years. Between 2004 and today, the dollar experienced an average annual inflation rate of 2.53%, resulting in a cumulative price increase of 56.84%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2004.
In 2004, the inflation rate was 2.68%. 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 2004 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 2004 to today) | 56.84% |
| Average inflation rate (from 2004 to today) | 2.53% |
| Converted amount | $1.57 |
| Price Difference | $0.57 |
| CPI in 2004 | 188.9 |
| CPI in 2022 | 296.276 |
| Inflation in 2004 | 2.68% |
| Inflation in 2022 | 8.52% |
| $1 in 2004 | $1.57 in 2022 |
Buying power of $1 in 2004
If you had $1 in your hand in 2004, its adjusted value for inflation today would be $1.57. Put another way, you would need $1.57 to beat the rising inflation. When $1 becomes equivalent to $1.57 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 2004 dollars, it's evident how $1 loses its worth over 18 years.
Dollar inflation for $1 from 2004 to 2022
The below tabular column shows the effect of inflation on $1 in the year 2004 to the year 2004.
| Year | Dollar Value | Inflation Rate |
|---|---|---|
| 2004 | 1 | 2.68% |
| 2005 | 1.03 | 3.39% |
| 2006 | 1.07 | 3.23% |
| 2007 | 1.1 | 2.85% |
| 2008 | 1.14 | 3.84% |
| 2009 | 1.14 | -0.36% |
| 2010 | 1.15 | 1.64% |
| 2011 | 1.19 | 3.16% |
| 2012 | 1.22 | 2.07% |
| 2013 | 1.23 | 1.46% |
| 2014 | 1.25 | 1.62% |
| 2015 | 1.25 | 0.12% |
| 2016 | 1.27 | 1.26% |
| 2017 | 1.3 | 2.13% |
| 2018 | 1.33 | 2.49% |
| 2019 | 1.35 | 1.76% |
| 2020 | 1.37 | 1.23% |
| 2021 | 1.43 | 4.70% |
| 2022 | 1.57 | 8.52% |
Conversion of 2004 dollars to today's price
Based on the 56.84% change in prices, the following 2004 amounts are shown in today's dollars:
| Initial value | Today value |
|---|---|
| $1 dollar in 2004 | $1.57 dollars today |
| $5 dollars in 2004 | $7.84 dollars today |
| $10 dollars in 2004 | $15.68 dollars today |
| $50 dollars in 2004 | $78.42 dollars today |
| $100 dollars in 2004 | $156.84 dollars today |
| $500 dollars in 2004 | $784.21 dollars today |
| $1,000 dollars in 2004 | $1568.43 dollars today |
| $5,000 dollars in 2004 | $7842.14 dollars today |
| $10,000 dollars in 2004 | $15684.28 dollars today |
| $50,000 dollars in 2004 | $78421.39 dollars today |
| $100,000 dollars in 2004 | $156842.77 dollars today |
| $500,000 dollars in 2004 | $784213.87 dollars today |
| $1,000,000 dollars in 2004 | $1568427.74 dollars today |
How to calculate the inflated value of $1 in 2004
To calculate the change in value between 2004 and today, we use the following inflation rate formula:
CPI Today / CPI in 2004 x USD Value in 2004 = Current USD Value
By plugging the values into the formula above, we get:
296.276/ 188.9 x $1 = $1.57
To buy the same product that you could buy for $1 in 2004, you would need $1.57 in 2022.
To calculate the cumulative or total inflation rate in the past 18 years between 2004 and 2022, we use the following formula:
CPI in 2022 - CPI in 2004 / CPI in 2004 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 296.276 - 188.9 / 188.9) x 100 = 56.84%
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 18 years between 2022 and 2004. The average inflation rate was 2.5319317364487%.
Plugging in the values into the formula, we get:
1 (1+ % 2.53/ 100 ) ^ 18 = $1.57