# 2018 Inflation Calculator

Amount in 2018:

RESULT: \$1 in 2018 is worth \$1.18 today.

You might be interested in calculating the value of \$1 for the year 2019.

# \$1 in 2018 is worth \$1.18 today.

## The value of \$1 from 2018 to 2022

\$1 in 2018 has the purchasing power of about \$1.18 today, a \$0.18 increase in 4 years. Between 2018 and today, the dollar experienced an average annual inflation rate of 4.29%, resulting in a cumulative price increase of 18.27%.

According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2018.

In 2018, the inflation rate was 2.44%. 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 2018 to 2022

Summary Value
Cumulative price change (from 2018 to today) 18.27%
Average inflation rate (from 2018 to today) 4.29%
Converted amount \$1.18
Price Difference \$0.18
CPI in 2018 250.5
CPI in 2022 296.276
Inflation in 2018 2.44%
Inflation in 2022 8.52%
\$1 in 2018 \$1.18 in 2022

## Buying power of \$1 in 2018

If you had \$1 in your hand in 2018, its adjusted value for inflation today would be \$1.18. Put another way, you would need \$1.18 to beat the rising inflation. When \$1 becomes equivalent to \$1.18 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 2018 dollars, it's evident how \$1 loses its worth over 4 years.

## Dollar inflation for \$1 from 2018 to 2022

The below tabular column shows the effect of inflation on \$1 in the year 2018 to the year 2018.

Year Dollar Value Inflation Rate
2018 1 2.44%
2019 1.02 1.76%
2020 1.03 1.23%
2021 1.08 4.70%
2022 1.18 8.52%

## Conversion of 2018 dollars to today's price

Based on the 18.27% change in prices, the following 2018 amounts are shown in today's dollars:

Initial value Today value
\$1 dollar in 2018 \$1.18 dollars today
\$5 dollars in 2018 \$5.91 dollars today
\$10 dollars in 2018 \$11.83 dollars today
\$50 dollars in 2018 \$59.14 dollars today
\$100 dollars in 2018 \$118.27 dollars today
\$500 dollars in 2018 \$591.37 dollars today
\$1,000 dollars in 2018 \$1182.74 dollars today
\$5,000 dollars in 2018 \$5913.69 dollars today
\$10,000 dollars in 2018 \$11827.39 dollars today
\$50,000 dollars in 2018 \$59136.93 dollars today
\$100,000 dollars in 2018 \$118273.85 dollars today
\$500,000 dollars in 2018 \$591369.26 dollars today
\$1,000,000 dollars in 2018 \$1182738.52 dollars today

## How to calculate the inflated value of \$1 in 2018

To calculate the change in value between 2018 and today, we use the following inflation rate formula:

CPI Today / CPI in 2018 x USD Value in 2018 = Current USD Value

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

296.276/ 250.5 x \$1 = \$1.18

To buy the same product that you could buy for \$1 in 2018, you would need \$1.18 in 2022.

### To calculate the cumulative or total inflation rate in the past 4 years between 2018 and 2022, we use the following formula:

CPI in 2022 - CPI in 2018 / CPI in 2018 x 100 = Cumulative Inflation Rate

By inserting the values to this equation, we get:

( 296.276 - 250.5 / 250.5) x 100 = 18.27%

### 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 4 years between 2022 and 2018. The average inflation rate was 4.2850816745961%.

Plugging in the values into the formula, we get:

1 (1+ % 4.29/ 100 ) ^ 4 = \$1.18