$20,000 in 1995 is equivalent in purchasing power to about $35,901.18 today, an increase of $15,901.18 over 26 years. The dollar had an average inflation rate of 2.28% per year between 1995 and today, producing a cumulative price increase of 79.51%.

This means that today's prices are 1.80 times higher than average prices since 1995, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 55.71% of what it could buy back then.

The 1995 inflation rate was 2.83%. The current year-over-year inflation rate (2020 to 2021) is now 5.25%^{1}.
If this number holds, $20,000 today will be equivalent in buying power to $21,050.25 next year.
The current inflation rate page gives more detail on the latest inflation rates.

Contents

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Cumulative price change | 79.51% |

Average inflation rate | 2.28% |

Converted amount ($20,000 base) | $35,901.18 |

Price difference ($20,000 base) | $15,901.18 |

CPI in 1995 | 152.400 |

CPI in 2021 | 273.567 |

Inflation in 1995 | 2.83% |

Inflation in 2021 | 5.25% |

$20,000 in 1995 | $35,901.18 in 2021 |

This chart shows a calculation of buying power equivalence for $20,000 in 1995 (price index tracking began in 1635).

For example, if you started with $20,000, you would need to end with $35,901.18 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $20,000 is equivalent to $35,901.18 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 1995 dollars, the chart below shows how $20,000 is worth less over 26 years.

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:

This conversion table shows various other 1995 amounts in today's dollars, based on the 79.51% change in prices:

Initial value | Equivalent value |
---|---|

$1 dollar in 1995 | $1.80 dollars today |

$5 dollars in 1995 | $8.98 dollars today |

$10 dollars in 1995 | $17.95 dollars today |

$50 dollars in 1995 | $89.75 dollars today |

$100 dollars in 1995 | $179.51 dollars today |

$500 dollars in 1995 | $897.53 dollars today |

$1,000 dollars in 1995 | $1,795.06 dollars today |

$5,000 dollars in 1995 | $8,975.30 dollars today |

$10,000 dollars in 1995 | $17,950.59 dollars today |

$50,000 dollars in 1995 | $89,752.95 dollars today |

$100,000 dollars in 1995 | $179,505.91 dollars today |

$500,000 dollars in 1995 | $897,529.53 dollars today |

$1,000,000 dollars in 1995 | $1,795,059.06 dollars today |

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1995 to 2021 (figures shown are purchasing power equivalents of $20,000):

**San Diego, California**: 4.01% average rate, $20,000 → $53,389.08, cumulative change of 166.95%**Seattle, Washington**: 3.93% average rate, $20,000 → $54,548.10, cumulative change of 172.74%**Atlanta, Georgia**: 3.20% average rate, $20,000 → $45,307.69, cumulative change of 126.54%**San Francisco, California**: 2.76% average rate, $20,000 → $40,588.10, cumulative change of 102.94%**Denver, Colorado**: 2.47% average rate, $20,000 → $36,809.60, cumulative change of 84.05%**Miami-Fort Lauderdale, Florida**: 2.47% average rate, $20,000 → $37,690.33, cumulative change of 88.45%**Tampa, Florida**: 2.39% average rate, $20,000 → $36,059.21, cumulative change of 80.30%**Boston, Massachusetts**: 2.35% average rate, $20,000 → $36,605.35, cumulative change of 83.03%**New York**: 2.26% average rate, $20,000 → $35,787.80, cumulative change of 78.94%**Minneapolis-St Paul, Minnesota**: 2.20% average rate, $20,000 → $34,421.36, cumulative change of 72.11%**Dallas-Fort Worth, Texas**: 2.09% average rate, $20,000 → $34,250.00, cumulative change of 71.25%**Houston, Texas**: 2.04% average rate, $20,000 → $33,790.33, cumulative change of 68.95%**Philadelphia, Pennsylvania**: 2.01% average rate, $20,000 → $33,525.34, cumulative change of 67.63%**St Louis, Missouri**: 1.96% average rate, $20,000 → $33,097.83, cumulative change of 65.49%**Detroit, Michigan**: 1.94% average rate, $20,000 → $32,982.48, cumulative change of 64.91%**Chicago, Illinois**: 1.93% average rate, $20,000 → $32,853.33, cumulative change of 64.27%

San Diego, California experienced the highest rate of inflation during the 26 years between 1995 and 2021 (4.01%).

Chicago, Illinois experienced the lowest rate of inflation during the 26 years between 1995 and 2021 (1.93%).

Note that some locations showing 0% inflation may have not yet reported latest data.

Inflation can also vary widely by country. For comparison, in the UK £20,000.00 in 1995 would be equivalent to £39,440.70 in 2021, an absolute change of £19,440.70 and a cumulative change of 97.20%.

In Canada, CA$20,000.00 in 1995 would be equivalent to CA$31,298.41 in 2021, an absolute change of CA$11,298.41 and a cumulative change of 56.49%.

Compare these numbers to the US's overall absolute change of $15,901.18 and total percent change of 79.51%.

CPI is the weighted combination of many categories of spending that are tracked by the government. Breaking down these categories helps explain the main drivers behind price changes. This chart shows the average rate of inflation for select CPI categories between 1995 and 2021.

Compare these values to the overall average of 2.28% per year:

Category | Avg Inflation (%) | Total Inflation (%) | $20,000 in 1995 → 2021 |
---|---|---|---|

Food and beverages | 2.37 | 83.66 | 36,732.00 |

Housing | 2.44 | 87.31 | 37,461.60 |

Apparel | -0.36 | -9.00 | 18,200.99 |

Transportation | 1.86 | 61.60 | 32,320.97 |

Medical care | 3.39 | 137.68 | 47,535.34 |

Recreation | 1.05 | 31.31 | 26,262.24 |

Education and communication | 1.68 | 54.05 | 30,810.28 |

Other goods and services | 3.24 | 128.84 | 45,768.24 |

The graph below compares inflation in categories of goods over time. Click on a category such as "Food" to toggle it on or off:

For all these visualizations, it's important to note that not all categories may have been tracked since 1995. This table and charts use the earliest available data for each category.

Our calculations use the following inflation rate formula to calculate the change in value between 1995 and today:

CPI today
CPI in 1995

×

1995 USD value

=

Today's value

Then plug in historical CPI values. The U.S. CPI was 152.4 in the year 1995 and 273.567 in 2021:

273.567152.4

×

$20,000

=

$20,000 in 1995 has the same "purchasing power" or "buying power" as $35,901.18 in 2021.

To get the total inflation rate for the 26 years between 1995 and 2021, we use the following formula:

CPI in 2021 - CPI in 1995CPI in 1995

×

100

=

Plugging in the values to this equation, we get:

273.567 - 152.4152.4

×

100

=

The above data describe the CPI for all items. Also of note is the **Core CPI**, which measures inflation for all items except for the more volatile categories of food and energy.
Core inflation averaged 2.07% per year between 1995 and 2021 (vs all-CPI inflation of 2.28%), for an inflation total of 70.51%.

When using the core inflation measurement, $20,000 in 1995 is equivalent in buying power to $34,101.99 in 2021, a difference of $14,101.99. Recall that for All Items, the converted amount is $35,901.18 with a difference of $15,901.18.

In 1995, core inflation was 2.99%.

The average inflation rate of 2.28% has a compounding effect between 1995 and 2021. As noted above, this yearly inflation rate compounds to produce an overall price difference of 79.51% over 26 years.

To help put this inflation into perspective, if we had invested $20,000 in the S&P 500 index in 1995, our investment would be * nominally* worth approximately $315,631.02 in 2021. This is a return on investment of 1,478.16%, with an absolute return of $295,631.02 on top of the original $20,000.

These numbers are not inflation adjusted, so they are considered *nominal*. In order to evaluate the *real* return on our investment, we must calculate the return with inflation taken into account.

The compounding effect of inflation would account for 44.29% of returns ($139,797.80) during this period. This means the inflation-adjusted * real* return of our $20,000 investment is $155,833.22. You may also want to account for capital gains tax, which would take your real return down to around $132,458 for most people.

Original Amount | Final Amount | Change | |
---|---|---|---|

Nominal |
$20,000 | $315,631.02 | 1,478.16% |

RealInflation Adjusted |
$20,000 | $175,833.22 | 779.17% |

Information displayed above may differ slightly from other S&P 500 calculators. Minor discrepancies can occur because we use the latest CPI data for inflation, annualized inflation numbers for previous years, and we compute S&P price and dividends from January of 1995 to latest available data for 2021 using average monthly close price.

For more details on the S&P 500 between 1995 and 2021, see the stock market returns calculator.

Politics and news often influence economic performance. Here's what was happening at the time:

- Bosnian Serbs massacre over 7,000 Bosnian Muslims in Srebrenica.
- Scientists discover the Hale-Bopp Comet; which later became visible to the naked eye.
- Signing of the Dayton Agreement in Paris in order to end conflicts between former Yugoslavian republics
- 170 countries agree to the unconditional and indefinite extending of the Nuclear Non-proliferation Treaty.
- Austria, Finland and Sweden accede to the European Union.

Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (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: “$20,000 in 1995 → 2021 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 25 Sep. 2021, https://www.officialdata.org/us/inflation/1995?amount=20000.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

Cumulative price change | 79.51% |

Average inflation rate | 2.28% |

Converted amount ($20,000 base) | $35,901.18 |

Price difference ($20,000 base) | $15,901.18 |

CPI in 1995 | 152.400 |

CPI in 2021 | 273.567 |

Inflation in 1995 | 2.83% |

Inflation in 2021 | 5.25% |

$20,000 in 1995 | $35,901.18 in 2021 |