# 2021 Inflation Calculator

Amount in 2021:

RESULT: \$1 in 2021 is worth \$1.09 today.

You might be interested in calculating the value of \$1 for the year 2016.

# \$1 in 2021 is worth \$1.09 today.

## The value of \$1 from 2021 to 2022

\$1 in 2021 has the purchasing power of about \$1.09 today, a \$0.09 increase in 1 years. Between 2021 and today, the dollar experienced an average annual inflation rate of 9.34%, resulting in a cumulative price increase of 9.34%.

According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2021.

In 2021, the inflation rate was 4.7%. 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 2021 to 2022

Summary Value
Cumulative price change (from 2021 to today) 9.34%
Average inflation rate (from 2021 to today) 9.34%
Converted amount \$1.09
Price Difference \$0.09
CPI in 2021 270.97
CPI in 2022 296.276
Inflation in 2021 4.7%
Inflation in 2022 8.52%
\$1 in 2021 \$1.09 in 2022

## Buying power of \$1 in 2021

If you had \$1 in your hand in 2021, its adjusted value for inflation today would be \$1.09. Put another way, you would need \$1.09 to beat the rising inflation. When \$1 becomes equivalent to \$1.09 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 2021 dollars, it's evident how \$1 loses its worth over 1 years.

## Dollar inflation for \$1 from 2021 to 2022

The below tabular column shows the effect of inflation on \$1 in the year 2021 to the year 2021.

Year Dollar Value Inflation Rate
2021 1 4.7%
2022 1.09 8.52%

## Conversion of 2021 dollars to today's price

Based on the 9.34% change in prices, the following 2021 amounts are shown in today's dollars:

Initial value Today value
\$1 dollar in 2021 \$1.09 dollars today
\$5 dollars in 2021 \$5.47 dollars today
\$10 dollars in 2021 \$10.93 dollars today
\$50 dollars in 2021 \$54.67 dollars today
\$100 dollars in 2021 \$109.34 dollars today
\$500 dollars in 2021 \$546.7 dollars today
\$1,000 dollars in 2021 \$1093.39 dollars today
\$5,000 dollars in 2021 \$5466.95 dollars today
\$10,000 dollars in 2021 \$10933.9 dollars today
\$50,000 dollars in 2021 \$54669.52 dollars today
\$100,000 dollars in 2021 \$109339.04 dollars today
\$500,000 dollars in 2021 \$546695.21 dollars today
\$1,000,000 dollars in 2021 \$1093390.41 dollars today

## How to calculate the inflated value of \$1 in 2021

To calculate the change in value between 2021 and today, we use the following inflation rate formula:

CPI Today / CPI in 2021 x USD Value in 2021 = Current USD Value

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

296.276/ 270.97 x \$1 = \$1.09

To buy the same product that you could buy for \$1 in 2021, you would need \$1.09 in 2022.

### To calculate the cumulative or total inflation rate in the past 1 years between 2021 and 2022, we use the following formula:

CPI in 2022 - CPI in 2021 / CPI in 2021 x 100 = Cumulative Inflation Rate

By inserting the values to this equation, we get:

( 296.276 - 270.97 / 270.97) x 100 = 9.34%

### 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 1 years between 2022 and 2021. The average inflation rate was 9.3390412222755%.

Plugging in the values into the formula, we get:

1 (1+ % 9.34/ 100 ) ^ 1 = \$1.09