image of money
What is a dollar worth?
The Consumer Price Index (CPI) is a measure of the average
change in prices over time in a market basket of goods
and services.
Directions:
 
Enter years as 4 digits (i.e. 1913) through 2006. Enter dollar amount without commas or $ sign in box on first line. Click Calculate button to compute dollar amount shown on second line.

If in (year) I bought goods or services for $,

in (year) the same goods or services would cost $

Notes:
  • Limited to years from 1913 to 2006.
  • Data from consumer price indexes for all major expenditure class items.
  • An estimate for 2006 is based on the change in the CPI from fourth quarter 2004 to fourth quarter 2005.
  • Base year is chained; 1982-1984 = 100
  • The calculator does not work well in Windows 3.x or earlier Windows releases.
  • JavaScript-enabled browsers only; Netscape version 2.0 or higher provides the best results.
 
How the CPI is used to make these calculations.
 
Example: The CPI is used to calculate how prices have changed over the years. Let's say you have $7 in your pocket to purchase some goods and services today. How much money would you have needed in 1950 to buy the same amount of goods and services?

The CPI for 1950 = 24.1
The CPI for 2006 = 202.5

Use the following formula to compute the calculation:
1950 Price = 2006 Price x (1950 CPI / 2006 CPI)
$0.83 = $7.00 x (24.1 / 202.5)

 
Example: Let's say your parents told you that in 1950 a movie cost 25 cents. How could you tell if movies have increased in price faster or slower than most goods and services? To convert that price into today's dollars, use the CPI.

The CPI for 1950 = 24.1
The CPI for 2006 = 202.5
A movie in 1950 = $0.25

Use the following formula to compute the calculation:
2006 Price = 1950 Price x (2006 CPI / 1950 CPI)
$2.10 = $0.25 x (202.5 / 24.1)

A full-price movie at a theater now costs between $5.50 and $8.50. Looks like movies have increased in price faster than most other goods and services.