# 2017 Inflation Calculator

Amount in 2017:

RESULT: \$1 in 2017 is worth \$1.21 today.

You might be interested in calculating the value of \$1 for the year 2018.

# \$1 in 2017 is worth \$1.21 today.

## The value of \$1 from 2017 to 2022

\$1 in 2017 has the purchasing power of about \$1.21 today, a \$0.21 increase in 5 years. Between 2017 and today, the dollar experienced an average annual inflation rate of 3.87%, resulting in a cumulative price increase of 20.88%.

According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2017.

In 2017, the inflation rate was 2.14%. 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 2017 to 2022

Summary Value
Cumulative price change (from 2017 to today) 20.88%
Average inflation rate (from 2017 to today) 3.87%
Converted amount \$1.21
Price Difference \$0.21
CPI in 2017 245.1
CPI in 2022 296.276
Inflation in 2017 2.14%
Inflation in 2022 8.52%
\$1 in 2017 \$1.21 in 2022

## Buying power of \$1 in 2017

If you had \$1 in your hand in 2017, its adjusted value for inflation today would be \$1.21. Put another way, you would need \$1.21 to beat the rising inflation. When \$1 becomes equivalent to \$1.21 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 2017 dollars, it's evident how \$1 loses its worth over 5 years.

## Dollar inflation for \$1 from 2017 to 2022

The below tabular column shows the effect of inflation on \$1 in the year 2017 to the year 2017.

Year Dollar Value Inflation Rate
2017 1 2.14%
2018 1.02 2.49%
2019 1.04 1.76%
2020 1.06 1.23%
2021 1.11 4.70%
2022 1.21 8.52%

## Conversion of 2017 dollars to today's price

Based on the 20.88% change in prices, the following 2017 amounts are shown in today's dollars:

Initial value Today value
\$1 dollar in 2017 \$1.21 dollars today
\$5 dollars in 2017 \$6.04 dollars today
\$10 dollars in 2017 \$12.09 dollars today
\$50 dollars in 2017 \$60.44 dollars today
\$100 dollars in 2017 \$120.88 dollars today
\$500 dollars in 2017 \$604.4 dollars today
\$1,000 dollars in 2017 \$1208.8 dollars today
\$5,000 dollars in 2017 \$6043.98 dollars today
\$10,000 dollars in 2017 \$12087.96 dollars today
\$50,000 dollars in 2017 \$60439.82 dollars today
\$100,000 dollars in 2017 \$120879.64 dollars today
\$500,000 dollars in 2017 \$604398.2 dollars today
\$1,000,000 dollars in 2017 \$1208796.41 dollars today

## How to calculate the inflated value of \$1 in 2017

To calculate the change in value between 2017 and today, we use the following inflation rate formula:

CPI Today / CPI in 2017 x USD Value in 2017 = Current USD Value

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

296.276/ 245.1 x \$1 = \$1.21

To buy the same product that you could buy for \$1 in 2017, you would need \$1.21 in 2022.

### To calculate the cumulative or total inflation rate in the past 5 years between 2017 and 2022, we use the following formula:

CPI in 2022 - CPI in 2017 / CPI in 2017 x 100 = Cumulative Inflation Rate

By inserting the values to this equation, we get:

( 296.276 - 245.1 / 245.1) x 100 = 20.88%

### 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 5 years between 2022 and 2017. The average inflation rate was 3.8653364563507%.

Plugging in the values into the formula, we get:

1 (1+ % 3.87/ 100 ) ^ 5 = \$1.21