Inflation Calculator
U.S. Inflation Rate, $4,000 in 1880 to 2019
According to the Bureau of Labor Statistics consumer price index, today's prices in 2019 are 2,411.21% higher than average prices throughout 1880. The dollar experienced an average inflation rate of 2.35% per year during this period, meaning the real value of a dollar decreased.
In other words, $4,000 in 1880 is equivalent in purchasing power to about $100,448.24 in 2019, a difference of $96,448.24 over 139 years.
The 1880 inflation rate was 2.00%. The current inflation rate (2018 to 2019) is now 1.65%1. If this number holds, $4,000 today will be equivalent in buying power to $4,065.94 next year. The current inflation rate page gives more detail on the latest official inflation rates.
Contents
⌃
| Cumulative price change | 2,411.21% |
| Average inflation rate | 2.35% |
| Converted amount ($4,000 base) | $100,448.24 |
| Price difference ($4,000 base) | $96,448.24 |
| CPI in 1880 | 10.200 |
| CPI in 2019 | 256.143 |
| Inflation in 1880 | 2.00% |
| Inflation in 2019 | 1.65% |
Buying power of $4,000 in 1880
This chart shows calculation of buying power equivalence, often referred to as "the value of a dollar" over time for $4,000 in 1880 (price index tracking began in 1635).
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:
Inflation by Country
Inflation can also vary widely by country. For comparison, in the UK £4,000.00 in 1880 would be equivalent to £477,200.86 in 2019, an absolute change of £473,200.86 and a cumulative change of 11,830.02%.
Compare these numbers to the US's overall absolute change of $96,448.24 and total percent change of 2,411.21%.
Inflation by Spending Category
CPI is the weighted combination of many categories of spending that are tracked by the government. This chart shows the average rate of inflation for select CPI categories between 1880 and 2019.
Compare these values to the overall average of 2.35% per year:
| Category | Avg Inflation (%) | Total Inflation (%) | $4,000 in 1880 → 2019 |
|---|---|---|---|
| Food | 3.12 | 7,052.69 | 286,107.64 |
| Shelter | 4.08 | 25,974.59 | 1,042,983.59 |
| Energy | 3.78 | 17,268.58 | 694,743.24 |
| Apparel | 2.02 | 1,519.72 | 64,788.93 |
| New vehicles | 1.04 | 322.17 | 16,886.94 |
| Used cars and trucks | 0.62 | 136.97 | 9,478.63 |
| Transportation services | 4.02 | 24,004.82 | 964,192.70 |
| Medical care services | 5.07 | 97,264.74 | 3,894,589.47 |
| Medical care commodities | 3.00 | 5,991.74 | 243,669.55 |
It's important to note that not all categories may be tracked since 1880. This table and visualization use the earliest available data for each category.
How to Calculate Inflation Rate for $4,000 since 1880
This inflation calculator uses the following inflation rate formula:
CPI in 2019CPI in 1880
×
1880 USD value
=
2019 USD value
Then plug in historical CPI values. The U.S. CPI was 10.2 in the year 1880 and 256.143 in 2019:
256.14310.2
×
$4,000
=
$100,448.24
$4,000 in 1880 has the same "purchasing power" or "buying power" as $100,448.24 in 2019.
To get the total inflation rate for the 139 years between 1880 and 2019, we use the following formula:
CPI in 2019 - CPI in 1880CPI in 1880
×
100
=
Cumulative inflation rate (139 years)
Plugging in the values to this equation, we get:
256.143 - 10.210.2
×
100
=
2,411%
Comparison to S&P 500 Index
The average inflation rate of 2.35% has a compounding effect between 1880 and 2019. As noted above, this yearly inflation rate compounds to produce an overall price difference of 2,411.21% over 139 years.
To help put this inflation into perspective, if we had invested $4,000 in the S&P 500 index in 1880, our investment would be nominally worth approximately $799,447,059.19 in 2019. This is a return on investment of 19,986,076.48%, with an absolute return of $799,443,059.19.
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 96.02% of returns ($767,608,032.65) during this period. This means the inflation-adjusted real return of our $4,000 investment is $31,835,026.54.
| Original Amount | Final Amount | Change | |
|---|---|---|---|
| Nominal | $4,000 | $799,447,059.19 | 19,986,076.48% |
| Real Inflation Adjusted |
$4,000 | $31,835,026.54 | 795,875.66% |
News headlines from 1880
Politics and news often influence economic performance. Here's what was happening at the time:
- Construction begins on the Panama Canal.
- The United States constructs its first dedicated sewage system in Memphis, Tennessee.
- The Salvation Army is formed in London.
Data Source & Citation
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: “$4,000 in 1880 → 2019 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 14 Jul. 2019, https://www.officialdata.org/us/inflation/1880?amount=4000.
Special thanks to QuickChart for providing downloadable chart images.
in2013dollars.com is a reference website maintained by the Official Data Foundation.
| Cumulative price change | 2,411.21% |
| Average inflation rate | 2.35% |
| Converted amount ($4,000 base) | $100,448.24 |
| Price difference ($4,000 base) | $96,448.24 |
| CPI in 1880 | 10.200 |
| CPI in 2019 | 256.143 |
| Inflation in 1880 | 2.00% |
| Inflation in 2019 | 1.65% |
