Value of $1 from 1860 to 2021

Define Real Value Of Money
The Real Value Of Money Varies

Apr 06, 2021 Real value of $100: $87.11. Median household income: $80,440. Annual cost of living expenditures: $49,839. Find Out: How Much You Really Take Home From the Average Salary in Every State. ESB Professional / Shutterstock.com. Real value of $100: $88.57. Definition: The nominal value of a good is its value in terms of money. The real value is its value in terms of some other good, service, or bundle of goods. Examples: Nominal: That CD costs $18. Japan’s science and technology spending is about 3 trillion yen per year. Real: A year of college costs about the value of a Toyota Camry. E In economics, nominal value is measured in terms of money, whereas real value is measured against goods or services. A real value is one which has been adjusted for inflation, enabling comparison of quantities as if the prices of goods had not changed on average. Changes in value in real terms therefore exclude the effect of inflation. The future value of a single cash flow is the real value of a particular sum of money in future. For example, if a project needs an investment of Rs1,000 at present, and would yield return at the rate of 5% after one year starting from the current date.

$1 in 1860 is equivalent in purchasing power to about $32.73 today, an increase of $31.73 over 161 years.The dollar had an average inflation rate of 2.19% per year between 1860 and today, producing a cumulative price increase of 3,173.45%.

This means that today's prices are32.73 times higher thanaverage prices since 1860,according to the Bureau of Labor Statistics consumer price index.A dollar today only buys 3.06% of what it could buy back then.

The 1860 inflation rate was 0.00%. The current year-over-year inflation rate (2020 to 2021) is now 5.39%¹.If this number holds, $1 today will be equivalent in buying power to $1.05 next year.The current inflation rate page gives more detail on the latest inflation rates.

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Inflation from 1860 to 2021
Cumulative price change	3,173.45%
Average inflation rate	2.19%
Converted amount ($1 base)	$32.73
Price difference ($1 base)	$31.73
CPI in 1860	8.300
CPI in 2021	271.696
Inflation in 1860	0.00%
Inflation in 2021	5.39%
$1 in 1860	$32.73 in 2021

Annual Rate, the Bureau of Labor Statistics CPI

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Buying power of $1 in 1860

This chart shows a calculation of buying power equivalence for $1 in 1860 (price index tracking began in 1635).

For example, if you started with $1, you would need to end with $32.73 in order to 'adjust' for inflation (sometimes refered to as 'beating inflation').

When $1 is equivalent to $32.73 over time, that means that the 'real value' of a single U.S. dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1860 dollars, the chart below shows how $1 is worth less over 161 years.

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According to the Bureau of Labor Statistics, each of these USD amounts below is equal in terms of what it could buy at the time:

Dollar inflation: 1860-2021
Year	Dollar Value	Inflation Rate
1860	$1.00	-
1861	$1.06	6.02%
1862	$1.22	14.77%
1863	$1.52	24.75%
1864	$1.89	24.60%
1865	$1.96	3.82%
1866	$1.92	-2.45%
1867	$1.78	-6.92%
1868	$1.71	-4.05%
1869	$1.64	-4.23%
1870	$1.58	-3.68%
1871	$1.47	-6.87%
1872	$1.47	0.00%
1873	$1.45	-1.64%
1874	$1.37	-5.00%
1875	$1.33	-3.51%
1876	$1.29	-2.73%
1877	$1.27	-1.87%
1878	$1.20	-4.76%
1879	$1.20	0.00%
1880	$1.23	2.00%
1881	$1.23	0.00%
1882	$1.23	0.00%
1883	$1.22	-0.98%
1884	$1.18	-2.97%
1885	$1.17	-1.02%
1886	$1.13	-3.09%
1887	$1.14	1.06%
1888	$1.14	0.00%
1889	$1.11	-3.16%
1890	$1.10	-1.09%
1891	$1.10	0.00%
1892	$1.10	0.00%
1893	$1.08	-1.10%
1894	$1.04	-4.44%
1895	$1.01	-2.33%
1896	$1.01	0.00%
1897	$1.00	-1.19%
1898	$1.00	0.00%
1899	$1.00	0.00%
1900	$1.01	1.20%
1901	$1.02	1.19%
1902	$1.04	1.18%
1903	$1.06	2.33%
1904	$1.07	1.14%
1905	$1.06	-1.12%
1906	$1.08	2.27%
1907	$1.13	4.44%
1908	$1.11	-2.13%
1909	$1.10	-1.09%
1910	$1.14	4.40%
1911	$1.14	0.00%
1912	$1.17	2.11%
1913	$1.19	2.06%
1914	$1.20	1.01%
1915	$1.22	1.00%
1916	$1.31	7.92%
1917	$1.54	17.43%
1918	$1.82	17.97%
1919	$2.08	14.57%
1920	$2.41	15.61%
1921	$2.16	-10.50%
1922	$2.02	-6.15%
1923	$2.06	1.79%
1924	$2.06	0.00%
1925	$2.11	2.34%
1926	$2.13	1.14%
1927	$2.10	-1.69%
1928	$2.06	-1.72%
1929	$2.06	0.00%
1930	$2.01	-2.34%
1931	$1.83	-8.98%
1932	$1.65	-9.87%
1933	$1.57	-5.11%
1934	$1.61	3.08%
1935	$1.65	2.24%
1936	$1.67	1.46%
1937	$1.73	3.60%
1938	$1.70	-2.08%
1939	$1.67	-1.42%
1940	$1.69	0.72%
1941	$1.77	5.00%
1942	$1.96	10.88%
1943	$2.08	6.13%
1944	$2.12	1.73%
1945	$2.17	2.27%
1946	$2.35	8.33%
1947	$2.69	14.36%
1948	$2.90	8.07%
1949	$2.87	-1.24%
1950	$2.90	1.26%
1951	$3.13	7.88%
1952	$3.19	1.92%
1953	$3.22	0.75%
1954	$3.24	0.75%
1955	$3.23	-0.37%
1956	$3.28	1.49%
1957	$3.39	3.31%
1958	$3.48	2.85%
1959	$3.51	0.69%
1960	$3.57	1.72%
1961	$3.60	1.01%
1962	$3.64	1.00%

Real Value Of Money