How Do You Calculate Inflation Present Values?
Want to calculate inflation and convert a dollar figure into today’s present value? How much would that $2,000 car in 1913 cost today? This how to will show you how to convert that price and see how much it would be worth today, adjusting for historical inflation. First, find the price of the old item you want to compare. For this how to, let’s see how much that $2,000 car in 1913 would cost in today’s money. Go to the web site: http://www.bls.gov/data/inflation_calculator.htm This is the Consumer Price Index calculator from the US Bureau of Labor Statistics. The calculator converts money’s value from a previous year into today’s dollars by adjusting for each year’s rate of inflation. Enter $2,000 into the data calculator and change the year to 1913. (Or use other numbers that you’re curious about.) Click calculate and you’re done. Turns out that $2,000 car is the equivalent of $43,602.83, adjusting for inflation prices. Not nearly as cheap as it seemed!
