# $1 in 1975 is worth$5.05 today

$1 in 1975 has the same purchasing power as$5.05 today. Over the 46 years this is a change of $4.05. The average inflation rate of the dollar between 1975 and 2021 was 3.73% per year. The cumulative price increase of the dollar over this time was 405.01%. ## The value of$1 from 1975 to 2021

So what does this data mean? It means that the prices in 2021 are 0.05 higher than the average prices since 1975. A dollar today can buy 19.80% of what it could buy in 1975.

We can look at the buying power equivalent for $1 in 1975 to see how much you would need to adjust for in order to beat inflation. For 1975 to 2021, if you started with$1 in 1975, you would need to have $5.05 in 1975 to keep up with inflation rates. So if we are saying that$1 is equivalent to $5.05 over time, you can see the core concept of inflation in action. The "real value" of a single dollar decreases over time. It will pay for fewer items at the store than it did previously. In the chart below you can see how the value of the dollar is worth less over 46 years. ## Value of$1 Over Time

In the table below we can see the value of the US Dollar over time. According to the BLS, each of these amounts are equivalent in terms of what that amount could purchase at the time.

Year Dollar Value Inflation Rate
1975 $1.00 9.13% 1976$1.06 5.76%
1977 $1.13 6.50% 1978$1.21 7.59%
1979 $1.35 11.35% 1980$1.53 13.50%
1981 $1.69 10.32% 1982$1.79 6.16%
1983 $1.85 3.21% 1984$1.93 4.32%
1985 $2.00 3.56% 1986$2.04 1.86%
1987 $2.11 3.65% 1988$2.20 4.14%
1989 $2.30 4.82% 1990$2.43 5.40%
1991 $2.53 4.21% 1992$2.61 3.01%
1993 $2.69 2.99% 1994$2.75 2.56%
1995 $2.83 2.83% 1996$2.92 2.95%
1997 $2.98 2.29% 1998$3.03 1.56%
1999 $3.10 2.21% 2000$3.20 3.36%
2001 $3.29 2.85% 2002$3.34 1.58%
2003 $3.42 2.28% 2004$3.51 2.66%
2005 $3.63 3.39% 2006$3.75 3.23%
2007 $3.85 2.85% 2008$4.00 3.84%
2009 $3.99 -0.36% 2010$4.05 1.64%
2011 $4.18 3.16% 2012$4.27 2.07%
2013 $4.33 1.46% 2014$4.40 1.62%
2015 $4.41 0.12% 2016$4.46 1.26%
2017 $4.56 2.13% 2018$4.67 2.44%
2019 $4.75 1.81% 2020$4.81 1.23%