# \$500 in 1925 → \$7,130.11 in 2018

## Inflation Calculator

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### U.S. Inflation Rate, 1925-2018 (\$500)

According to the Bureau of Labor Statistics consumer price index, the dollar experienced an average inflation rate of 2.90% per year. Prices in 2018 are 1326.0% higher than prices in 1925.

In other words, \$500 in the year 1925 is equivalent in purchasing power to \$7,130.11 in 2018, a difference of \$6,630.11 over 93 years.

Compared to last year's annual rate, the inflation rate in 2018 is now 1.95%1. If this number holds, \$500 today would be equivalent to \$509.74 next year. The current inflation rate page gives more detail on the latest official inflation rates.

 Cumulative price change 1326.02% Average inflation rate 2.90% Price difference (\$500 base) \$6,630.11 CPI in 1925 17.5 CPI in 2018 249.554

#### Inflation rates for specific categories

New cars · Bananas · Parking fees and tolls · More

S&P 500 price · S&P 500 earnings · Shiller P/E

### How to calculate the inflation rate for \$500 since 1925

This inflation calculator uses the following inflation rate formula:

CPI in 2018 / CPI in 1925 * 1925 USD value = 2018 USD value

Then plug in historical CPI values. The U.S. CPI was 17.5 in the year 1925 and 249.554 in 2018:

249.554 / 17.5 * \$500 = \$7,130.11

\$500 in 1925 has the same "purchasing power" as \$7,130.11 in 2018.