$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