$1000 in 2015 is worth $1250.11 today.
The value of $1000 from 2015 to 2022
$1000 in 2015 has the purchasing power of about $1250.11 today, a $250.11 increase in 7 years. Between 2015 and today, the dollar experienced an average annual inflation rate of 3.24%, resulting in a cumulative price increase of 25.01%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2015.
In 2015, the inflation rate was 0.12%. Inflation is now 8.52% higher than it was last year. If this figure holds true, $1000 today will be worth $9520 next year in purchasing power.
Inflation from 2015 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 2015 to today) | 25.01% |
| Average inflation rate (from 2015 to today) | 3.24% |
| Converted amount | $1250.11 |
| Price Difference | $250.11 |
| CPI in 2015 | 237 |
| CPI in 2022 | 296.276 |
| Inflation in 2015 | 0.12% |
| Inflation in 2022 | 8.52% |
| $1000 in 2015 | $1250.11 in 2022 |
Buying power of $1000 in 2015
If you had $1000 in your hand in 2015, its adjusted value for inflation today would be $1250.11. Put another way, you would need $1250.11 to beat the rising inflation. When $1000 becomes equivalent to $1250.11 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 2015 dollars, it's evident how $1000 loses its worth over 7 years.
Dollar inflation for $1000 from 2015 to 2022
The below tabular column shows the effect of inflation on $1000 in the year 2015 to the year 2015.
| Year | Dollar Value | Inflation Rate |
|---|---|---|
| 2015 | 1000 | 0.12% |
| 2016 | 1012.62 | 1.26% |
| 2017 | 1034.25 | 2.13% |
| 2018 | 1059.48 | 2.49% |
| 2019 | 1078.68 | 1.76% |
| 2020 | 1091.99 | 1.23% |
| 2021 | 1143.28 | 4.70% |
| 2022 | 1251.33 | 8.52% |
Conversion of 2015 dollars to today's price
Based on the 25.01% change in prices, the following 2015 amounts are shown in today's dollars:
| Initial value | Today value |
|---|---|
| $1 dollar in 2015 | $1.25 dollars today |
| $5 dollars in 2015 | $6.25 dollars today |
| $10 dollars in 2015 | $12.5 dollars today |
| $50 dollars in 2015 | $62.51 dollars today |
| $100 dollars in 2015 | $125.01 dollars today |
| $500 dollars in 2015 | $625.05 dollars today |
| $1,000 dollars in 2015 | $1250.11 dollars today |
| $5,000 dollars in 2015 | $6250.55 dollars today |
| $10,000 dollars in 2015 | $12501.1 dollars today |
| $50,000 dollars in 2015 | $62505.49 dollars today |
| $100,000 dollars in 2015 | $125010.97 dollars today |
| $500,000 dollars in 2015 | $625054.85 dollars today |
| $1,000,000 dollars in 2015 | $1250109.7 dollars today |
How to calculate the inflated value of $1000 in 2015
To calculate the change in value between 2015 and today, we use the following inflation rate formula:
CPI Today / CPI in 2015 x USD Value in 2015 = Current USD Value
By plugging the values into the formula above, we get:
296.276/ 237 x $1000 = $1250.11
To buy the same product that you could buy for $1000 in 2015, you would need $1250.11 in 2022.
To calculate the cumulative or total inflation rate in the past 7 years between 2015 and 2022, we use the following formula:
CPI in 2022 - CPI in 2015 / CPI in 2015 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 296.276 - 237 / 237) x 100 = 25.01%
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 $1000 is worth today. We have 7 years between 2022 and 2015. The average inflation rate was 3.2404128006562%.
Plugging in the values into the formula, we get:
1000 (1+ % 3.24/ 100 ) ^ 7 = $1250.11