# \$40,000 in 1940 → \$718,828.57 in 2018

## Inflation Calculator

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### U.S. Inflation Rate, \$40,000 in 1940 to 2018

According to the Bureau of Labor Statistics consumer price index, the dollar experienced an average inflation rate of 3.77% per year. Prices in 2018 are 1697.1% higher than prices in 1940.

In other words, \$40,000 in 1940 is equivalent in purchasing power to \$718,828.57 in 2018, a difference of \$678,828.57 over 78 years.

The current inflation rate is now 2.80%1. If this number holds, \$40,000 today will be equivalent to \$41,120.40 next year. The current inflation rate page gives more detail on the latest official inflation rates.

 Cumulative price change 1697.07% Average inflation rate 3.77% Converted amount (\$40,000 base) \$718,828.57 Price difference (\$40,000 base) \$678,828.57 CPI in 1940 14 CPI in 2018 251.59

#### Inflation rates for specific categories

Bananas · Educational books and supplies · Fish and seafood · More

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

### How to calculate the inflation rate for \$40,000 since 1940

This inflation calculator uses the following inflation rate formula:

CPI in 2018 / CPI in 1940 * 1940 USD value = 2018 USD value

Then plug in historical CPI values. The U.S. CPI was 14 in the year 1940 and 251.59 in 2018:

251.59 / 14 * \$40,000 = \$718,828.57

\$40,000 in 1940 has the same "purchasing power" or "buying power" as \$718,828.57 in 2018.

Here are calculations of buying power over time for \$40,000 in 1940 (price index tracking began in 1913). Each of these USD amounts below is equivalent in terms of what it could buy at the time:
Year USD Value Inflation Rate
1940 \$40,000.00 0.72%
1941 \$42,000.00 5.00%
1942 \$46,571.43 10.88%
1943 \$49,428.57 6.13%
1944 \$50,285.71 1.73%
1945 \$51,428.57 2.27%
1946 \$55,714.29 8.33%
1947 \$63,714.29 14.36%
1948 \$68,857.14 8.07%
1949 \$68,000.00 -1.24%
1950 \$68,857.14 1.26%
1951 \$74,285.71 7.88%
1952 \$75,714.29 1.92%
1953 \$76,285.71 0.75%
1954 \$76,857.14 0.75%
1955 \$76,571.43 -0.37%
1956 \$77,714.29 1.49%
1957 \$80,285.71 3.31%
1958 \$82,571.43 2.85%
1959 \$83,142.86 0.69%
1960 \$84,571.43 1.72%
1961 \$85,428.57 1.01%
1962 \$86,285.71 1.00%
1963 \$87,428.57 1.32%
1964 \$88,571.43 1.31%
1965 \$90,000.00 1.61%
1966 \$92,571.43 2.86%
1967 \$95,428.57 3.09%
1968 \$99,428.57 4.19%
1969 \$104,857.14 5.46%
1970 \$110,857.14 5.72%
1971 \$115,714.29 4.38%
1972 \$119,428.57 3.21%
1973 \$126,857.14 6.22%
1974 \$140,857.14 11.04%
1975 \$153,714.29 9.13%
1976 \$162,571.43 5.76%
1977 \$173,142.86 6.50%
1978 \$186,285.71 7.59%
1979 \$207,428.57 11.35%
1980 \$235,428.57 13.50%
1981 \$259,714.29 10.32%
1982 \$275,714.29 6.16%
1983 \$284,571.43 3.21%
1984 \$296,857.14 4.32%
1985 \$307,428.57 3.56%
1986 \$313,142.86 1.86%
1987 \$324,571.43 3.65%
1988 \$338,000.00 4.14%
1989 \$354,285.71 4.82%
1990 \$373,428.57 5.40%
1991 \$389,142.86 4.21%
1992 \$400,857.14 3.01%
1993 \$412,857.14 2.99%
1994 \$423,428.57 2.56%
1995 \$435,428.57 2.83%
1996 \$448,285.71 2.95%
1997 \$458,571.43 2.29%
1998 \$465,714.29 1.56%
1999 \$476,000.00 2.21%
2000 \$492,000.00 3.36%
2001 \$506,000.00 2.85%
2002 \$514,000.00 1.58%
2003 \$525,714.29 2.28%
2004 \$539,714.29 2.66%
2005 \$558,000.00 3.39%
2006 \$576,000.00 3.23%
2007 \$592,405.71 2.85%
2008 \$615,151.43 3.84%
2009 \$612,962.86 -0.36%
2010 \$623,017.14 1.64%
2011 \$642,682.86 3.16%
2012 \$655,982.86 2.07%
2013 \$665,591.43 1.46%
2014 \$676,388.57 1.62%
2015 \$677,191.43 0.12%
2016 \$685,734.29 1.26%
2017 \$699,388.57 1.99%
2018 \$718,828.57 2.78%*
* Not final. See inflation summary for latest details.

### Inflation Data Source

Raw data for these calculations comes from the Bureau of Labor Statistics' (CPI), established in 1913. Inflation data from 1665 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University.

You may use the following MLA citation for this page: “\$40,000 in 1940 → 2018 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 23 Jun. 2018, https://www.officialdata.org/1940-dollars?amount=40000.