$1 in 2014 is worth $1.25 today.
The value of $1 from 2014 to 2022
$1 in 2014 has the purchasing power of about $1.25 today, a $0.25 increase in 8 years. Between 2014 and today, the dollar experienced an average annual inflation rate of 2.85%, resulting in a cumulative price increase of 25.17%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2014.
In 2014, the inflation rate was 1.62%. 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 2014 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 2014 to today) | 25.17% |
| Average inflation rate (from 2014 to today) | 2.85% |
| Converted amount | $1.25 |
| Price Difference | $0.25 |
| CPI in 2014 | 236.7 |
| CPI in 2022 | 296.276 |
| Inflation in 2014 | 1.62% |
| Inflation in 2022 | 8.52% |
| $1 in 2014 | $1.25 in 2022 |
Buying power of $1 in 2014
If you had $1 in your hand in 2014, its adjusted value for inflation today would be $1.25. Put another way, you would need $1.25 to beat the rising inflation. When $1 becomes equivalent to $1.25 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 2014 dollars, it's evident how $1 loses its worth over 8 years.
Dollar inflation for $1 from 2014 to 2022
The below tabular column shows the effect of inflation on $1 in the year 2014 to the year 2014.
| Year | Dollar Value | Inflation Rate |
|---|---|---|
| 2014 | 1 | 1.62% |
| 2015 | 1 | 0.12% |
| 2016 | 1.01 | 1.26% |
| 2017 | 1.04 | 2.13% |
| 2018 | 1.06 | 2.49% |
| 2019 | 1.08 | 1.76% |
| 2020 | 1.09 | 1.23% |
| 2021 | 1.14 | 4.70% |
| 2022 | 1.25 | 8.52% |
Conversion of 2014 dollars to today's price
Based on the 25.17% change in prices, the following 2014 amounts are shown in today's dollars:
| Initial value | Today value |
|---|---|
| $1 dollar in 2014 | $1.25 dollars today |
| $5 dollars in 2014 | $6.26 dollars today |
| $10 dollars in 2014 | $12.52 dollars today |
| $50 dollars in 2014 | $62.58 dollars today |
| $100 dollars in 2014 | $125.17 dollars today |
| $500 dollars in 2014 | $625.85 dollars today |
| $1,000 dollars in 2014 | $1251.69 dollars today |
| $5,000 dollars in 2014 | $6258.47 dollars today |
| $10,000 dollars in 2014 | $12516.94 dollars today |
| $50,000 dollars in 2014 | $62584.71 dollars today |
| $100,000 dollars in 2014 | $125169.41 dollars today |
| $500,000 dollars in 2014 | $625847.06 dollars today |
| $1,000,000 dollars in 2014 | $1251694.13 dollars today |
How to calculate the inflated value of $1 in 2014
To calculate the change in value between 2014 and today, we use the following inflation rate formula:
CPI Today / CPI in 2014 x USD Value in 2014 = Current USD Value
By plugging the values into the formula above, we get:
296.276/ 236.7 x $1 = $1.25
To buy the same product that you could buy for $1 in 2014, you would need $1.25 in 2022.
To calculate the cumulative or total inflation rate in the past 8 years between 2014 and 2022, we use the following formula:
CPI in 2022 - CPI in 2014 / CPI in 2014 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 296.276 - 236.7 / 236.7) x 100 = 25.17%
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 8 years between 2022 and 2014. The average inflation rate was 2.8459695790885%.
Plugging in the values into the formula, we get:
1 (1+ % 2.85/ 100 ) ^ 8 = $1.25