# 2005 Inflation Calculator

Amount in 2005:

RESULT: \$1 in 2005 is worth \$1.52 today.

You might be interested in calculating the value of \$1 for the year 2010. Or calculate the value of \$1 for the year 2015

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# \$1 in 2005 is worth \$1.52 today.

## The value of \$1 from 2005 to 2022

\$1 in 2005 has the purchasing power of about \$1.52 today, a \$0.52 increase in 17 years. Between 2005 and today, the dollar experienced an average annual inflation rate of 2.48%, resulting in a cumulative price increase of 51.7%.

According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2005.

In 2005, the inflation rate was 3.39%. 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 2005 to 2022

Summary Value
Cumulative price change (from 2005 to today) 51.7%
Average inflation rate (from 2005 to today) 2.48%
Converted amount \$1.52
Price Difference \$0.52
CPI in 2005 195.3
CPI in 2022 296.276
Inflation in 2005 3.39%
Inflation in 2022 8.52%
\$1 in 2005 \$1.52 in 2022

## Buying power of \$1 in 2005

If you had \$1 in your hand in 2005, its adjusted value for inflation today would be \$1.52. Put another way, you would need \$1.52 to beat the rising inflation. When \$1 becomes equivalent to \$1.52 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 2005 dollars, it's evident how \$1 loses its worth over 17 years.

## Dollar inflation for \$1 from 2005 to 2022

The below tabular column shows the effect of inflation on \$1 in the year 2005 to the year 2005.

Year Dollar Value Inflation Rate
2005 1 3.39%
2006 1.03 3.23%
2007 1.06 2.85%
2008 1.1 3.84%
2009 1.1 -0.36%
2010 1.12 1.64%
2011 1.15 3.16%
2012 1.18 2.07%
2013 1.19 1.46%
2014 1.21 1.62%
2015 1.21 0.12%
2016 1.23 1.26%
2017 1.26 2.13%
2018 1.29 2.49%
2019 1.31 1.76%
2020 1.33 1.23%
2021 1.39 4.70%
2022 1.52 8.52%

## Conversion of 2005 dollars to today's price

Based on the 51.7% change in prices, the following 2005 amounts are shown in today's dollars:

Initial value Today value
\$1 dollar in 2005 \$1.52 dollars today
\$5 dollars in 2005 \$7.59 dollars today
\$10 dollars in 2005 \$15.17 dollars today
\$50 dollars in 2005 \$75.85 dollars today
\$100 dollars in 2005 \$151.7 dollars today
\$500 dollars in 2005 \$758.52 dollars today
\$1,000 dollars in 2005 \$1517.03 dollars today
\$5,000 dollars in 2005 \$7585.15 dollars today
\$10,000 dollars in 2005 \$15170.3 dollars today
\$50,000 dollars in 2005 \$75851.51 dollars today
\$100,000 dollars in 2005 \$151703.02 dollars today
\$500,000 dollars in 2005 \$758515.1 dollars today
\$1,000,000 dollars in 2005 \$1517030.21 dollars today

## How to calculate the inflated value of \$1 in 2005

To calculate the change in value between 2005 and today, we use the following inflation rate formula:

CPI Today / CPI in 2005 x USD Value in 2005 = Current USD Value

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

296.276/ 195.3 x \$1 = \$1.52

To buy the same product that you could buy for \$1 in 2005, you would need \$1.52 in 2022.

### To calculate the cumulative or total inflation rate in the past 17 years between 2005 and 2022, we use the following formula:

CPI in 2022 - CPI in 2005 / CPI in 2005 x 100 = Cumulative Inflation Rate

By inserting the values to this equation, we get:

( 296.276 - 195.3 / 195.3) x 100 = 51.7%

### 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 17 years between 2022 and 2005. The average inflation rate was 2.4817940017809%.

Plugging in the values into the formula, we get:

1 (1+ % 2.48/ 100 ) ^ 17 = \$1.52