According to the Bureau of Labor Statistics consumer price index, the dollar experienced an average inflation rate of 3.75% per year. Prices in 2018 are 1670.5% higher than prices in 1940.
In other words, $500,000 in the year 1940 is equivalent in purchasing power to $8,852,392.86 in 2018, a difference of $8,352,392.86 over 78 years.
|Cumulative price change||1670.48%|
|Average inflation rate||3.75%|
|Price difference ($500,000 base)||$8,352,392.86|
|CPI in 1940||14|
|CPI in 2018||247.867|
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: “$500,000 in 1940 → 2018 | Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 20 Feb. 2018, http://www.in2013dollars.com/1940-dollars?amount=500000.