$1 in 2006 is worth $1.47 today.
The value of $1 from 2006 to 2022
$1 in 2006 has the purchasing power of about $1.47 today, a $0.47 increase in 16 years. Between 2006 and today, the dollar experienced an average annual inflation rate of 2.44%, resulting in a cumulative price increase of 46.96%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2006.
In 2006, the inflation rate was 3.23%. 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 2006 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 2006 to today) | 46.96% |
| Average inflation rate (from 2006 to today) | 2.44% |
| Converted amount | $1.47 |
| Price Difference | $0.47 |
| CPI in 2006 | 201.6 |
| CPI in 2022 | 296.276 |
| Inflation in 2006 | 3.23% |
| Inflation in 2022 | 8.52% |
| $1 in 2006 | $1.47 in 2022 |
Buying power of $1 in 2006
If you had $1 in your hand in 2006, its adjusted value for inflation today would be $1.47. Put another way, you would need $1.47 to beat the rising inflation. When $1 becomes equivalent to $1.47 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 2006 dollars, it's evident how $1 loses its worth over 16 years.
Dollar inflation for $1 from 2006 to 2022
The below tabular column shows the effect of inflation on $1 in the year 2006 to the year 2006.
| Year | Dollar Value | Inflation Rate |
|---|---|---|
| 2006 | 1 | 3.23% |
| 2007 | 1.03 | 2.85% |
| 2008 | 1.07 | 3.84% |
| 2009 | 1.06 | -0.36% |
| 2010 | 1.08 | 1.64% |
| 2011 | 1.12 | 3.16% |
| 2012 | 1.14 | 2.07% |
| 2013 | 1.16 | 1.46% |
| 2014 | 1.17 | 1.62% |
| 2015 | 1.18 | 0.12% |
| 2016 | 1.19 | 1.26% |
| 2017 | 1.22 | 2.13% |
| 2018 | 1.25 | 2.49% |
| 2019 | 1.27 | 1.76% |
| 2020 | 1.28 | 1.23% |
| 2021 | 1.34 | 4.70% |
| 2022 | 1.47 | 8.52% |
Conversion of 2006 dollars to today's price
Based on the 46.96% change in prices, the following 2006 amounts are shown in today's dollars:
| Initial value | Today value |
|---|---|
| $1 dollar in 2006 | $1.47 dollars today |
| $5 dollars in 2006 | $7.35 dollars today |
| $10 dollars in 2006 | $14.7 dollars today |
| $50 dollars in 2006 | $73.48 dollars today |
| $100 dollars in 2006 | $146.96 dollars today |
| $500 dollars in 2006 | $734.81 dollars today |
| $1,000 dollars in 2006 | $1469.62 dollars today |
| $5,000 dollars in 2006 | $7348.12 dollars today |
| $10,000 dollars in 2006 | $14696.23 dollars today |
| $50,000 dollars in 2006 | $73481.15 dollars today |
| $100,000 dollars in 2006 | $146962.3 dollars today |
| $500,000 dollars in 2006 | $734811.51 dollars today |
| $1,000,000 dollars in 2006 | $1469623.02 dollars today |
How to calculate the inflated value of $1 in 2006
To calculate the change in value between 2006 and today, we use the following inflation rate formula:
CPI Today / CPI in 2006 x USD Value in 2006 = Current USD Value
By plugging the values into the formula above, we get:
296.276/ 201.6 x $1 = $1.47
To buy the same product that you could buy for $1 in 2006, you would need $1.47 in 2022.
To calculate the cumulative or total inflation rate in the past 16 years between 2006 and 2022, we use the following formula:
CPI in 2022 - CPI in 2006 / CPI in 2006 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 296.276 - 201.6 / 201.6) x 100 = 46.96%
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 16 years between 2022 and 2006. The average inflation rate was 2.4354716798496%.
Plugging in the values into the formula, we get:
1 (1+ % 2.44/ 100 ) ^ 16 = $1.47