# 2004 Inflation Calculator

Amount in 2004:

RESULT: \$1 in 2004 is worth \$1.57 today.

You might be interested in calculating the value of \$1 for the year 2009. Or calculate the value of \$1 for the year 2014

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# \$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