# \$1 in 1861 is worth \$0.54 in 1861

\$

## Value of \$1 from 1865 to 1861

According to the Bureau of Labor Statistics consumer price index, prices in 1861 are 46.01% lower than average prices since 1865. The U.S. dollar experienced an average inflation rate of 16.66% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 1865 is equivalent in purchasing power to about \$0.54 in 1861, a difference of \$-0.46 over 4 years.

The 1861 inflation rate was 6.02%. The inflation rate in 1865 was 3.82%. The 1865 inflation rate is higher compared to the average inflation rate of 1.79% per year between 1865 and 2020.

 Cumulative price change -46.01% Average inflation rate 16.66% Converted amount (\$1 base) \$0.54 Price difference (\$1 base) \$-0.46 CPI in 1865 16.300 CPI in 1861 8.800 Inflation in 1861 6.02% Inflation in 1865 3.82%

USD Inflation since 1635
Annual Rate, the Bureau of Labor Statistics CPI

## Buying power of \$1 in 1861

This chart shows a calculation of buying power equivalence for \$1 in 1861 (price index tracking began in 1635).

For example, if you started with \$1, you would need to end with \$0.54 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.54 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 1861 dollars, the chart below shows how \$1 is worth less over 4 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:

Dollar inflation: 1861-1865
Year Dollar Value Inflation Rate
1861 \$1.00 6.02%
1862 \$1.15 14.77%
1863 \$1.43 24.75%
1864 \$1.78 24.60%
1865 \$1.85 3.82%
1866 \$1.81 -2.45%
1867 \$1.68 -6.92%
1868 \$1.61 -4.05%
1869 \$1.55 -4.23%
1870 \$1.49 -3.68%
1871 \$1.39 -6.87%
1872 \$1.39 0.00%
1873 \$1.36 -1.64%
1874 \$1.30 -5.00%
1875 \$1.25 -3.51%
1876 \$1.22 -2.73%
1877 \$1.19 -1.87%
1878 \$1.14 -4.76%
1879 \$1.14 0.00%
1880 \$1.16 2.00%
1881 \$1.16 0.00%
1882 \$1.16 0.00%
1883 \$1.15 -0.98%
1884 \$1.11 -2.97%
1885 \$1.10 -1.02%
1886 \$1.07 -3.09%
1887 \$1.08 1.06%
1888 \$1.08 0.00%
1889 \$1.05 -3.16%
1890 \$1.03 -1.09%
1891 \$1.03 0.00%
1892 \$1.03 0.00%
1893 \$1.02 -1.10%
1894 \$0.98 -4.44%
1895 \$0.95 -2.33%
1896 \$0.95 0.00%
1897 \$0.94 -1.19%
1898 \$0.94 0.00%
1899 \$0.94 0.00%
1900 \$0.95 1.20%
1901 \$0.97 1.19%
1902 \$0.98 1.18%
1903 \$1.00 2.33%
1904 \$1.01 1.14%
1905 \$1.00 -1.12%
1906 \$1.02 2.27%
1907 \$1.07 4.44%
1908 \$1.05 -2.13%
1909 \$1.03 -1.09%
1910 \$1.08 4.40%
1911 \$1.08 0.00%
1912 \$1.10 2.11%
1913 \$1.13 2.06%
1914 \$1.14 1.01%
1915 \$1.15 1.00%
1916 \$1.24 7.92%
1917 \$1.45 17.43%
1918 \$1.72 17.97%
1919 \$1.97 14.57%
1920 \$2.27 15.61%
1921 \$2.03 -10.50%
1922 \$1.91 -6.15%
1923 \$1.94 1.79%
1924 \$1.94 0.00%
1925 \$1.99 2.34%
1926 \$2.01 1.14%
1927 \$1.98 -1.69%
1928 \$1.94 -1.72%
1929 \$1.94 0.00%
1930 \$1.90 -2.34%
1931 \$1.73 -8.98%
1932 \$1.56 -9.87%
1933 \$1.48 -5.11%
1934 \$1.52 3.08%
1935 \$1.56 2.24%
1936 \$1.58 1.46%
1937 \$1.64 3.60%
1938 \$1.60 -2.08%
1939 \$1.58 -1.42%
1940 \$1.59 0.72%
1941 \$1.67 5.00%
1942 \$1.85 10.88%
1943 \$1.97 6.13%
1944 \$2.00 1.73%
1945 \$2.05 2.27%
1946 \$2.22 8.33%
1947 \$2.53 14.36%
1948 \$2.74 8.07%
1949 \$2.70 -1.24%
1950 \$2.74 1.26%
1951 \$2.95 7.88%
1952 \$3.01 1.92%
1953 \$3.03 0.75%
1954 \$3.06 0.75%
1955 \$3.05 -0.37%
1956 \$3.09 1.49%
1957 \$3.19 3.31%
1958 \$3.28 2.85%
1959 \$3.31 0.69%
1960 \$3.36 1.72%
1961 \$3.40 1.01%
1962 \$3.43 1.00%
1963 \$3.48 1.32%
1964 \$3.52 1.31%
1965 \$3.58 1.61%
1966 \$3.68 2.86%
1967 \$3.80 3.09%
1968 \$3.95 4.19%
1969 \$4.17 5.46%
1970 \$4.41 5.72%
1971 \$4.60 4.38%
1972 \$4.75 3.21%
1973 \$5.05 6.22%
1974 \$5.60 11.04%
1975 \$6.11 9.13%
1976 \$6.47 5.76%
1977 \$6.89 6.50%
1978 \$7.41 7.59%
1979 \$8.25 11.35%
1980 \$9.36 13.50%
1981 \$10.33 10.32%
1982 \$10.97 6.16%
1983 \$11.32 3.21%
1984 \$11.81 4.32%
1985 \$12.23 3.56%
1986 \$12.45 1.86%
1987 \$12.91 3.65%
1988 \$13.44 4.14%
1989 \$14.09 4.82%
1990 \$14.85 5.40%
1991 \$15.48 4.21%
1992 \$15.94 3.01%
1993 \$16.42 2.99%
1994 \$16.84 2.56%
1995 \$17.32 2.83%
1996 \$17.83 2.95%
1997 \$18.24 2.29%
1998 \$18.52 1.56%
1999 \$18.93 2.21%
2000 \$19.57 3.36%
2001 \$20.12 2.85%
2002 \$20.44 1.58%
2003 \$20.91 2.28%
2004 \$21.47 2.66%
2005 \$22.19 3.39%
2006 \$22.91 3.23%
2007 \$23.56 2.85%
2008 \$24.47 3.84%
2009 \$24.38 -0.36%
2010 \$24.78 1.64%
2011 \$25.56 3.16%
2012 \$26.09 2.07%
2013 \$26.47 1.46%
2014 \$26.90 1.62%
2015 \$26.93 0.12%
2016 \$27.27 1.26%
2017 \$27.85 2.13%
2018 \$28.55 2.49%
2019 \$29.05 1.76%
2020 \$29.14 0.29%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1861 amounts in 1865 dollars, based on the -46.01% change in prices:

Conversion Table: Value of a dollar in 1865
Initial value Equivalent value
\$1 dollar in 1861 \$1.85 dollars in 1865
\$5 dollars in 1861 \$9.26 dollars in 1865
\$10 dollars in 1861 \$18.52 dollars in 1865
\$50 dollars in 1861 \$92.61 dollars in 1865
\$100 dollars in 1861 \$185.23 dollars in 1865
\$500 dollars in 1861 \$926.14 dollars in 1865
\$1,000 dollars in 1861 \$1,852.27 dollars in 1865
\$5,000 dollars in 1861 \$9,261.36 dollars in 1865
\$10,000 dollars in 1861 \$18,522.73 dollars in 1865
\$50,000 dollars in 1861 \$92,613.64 dollars in 1865
\$100,000 dollars in 1861 \$185,227.27 dollars in 1865
\$500,000 dollars in 1861 \$926,136.36 dollars in 1865
\$1,000,000 dollars in 1861 \$1,852,272.73 dollars in 1865

## Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1865 would be equivalent to £1.06 in 1861, an absolute change of £0.06 and a cumulative change of 5.56%.

Compare these numbers to the US's overall absolute change of \$-0.46 and total percent change of -46.01%.

## Inflation by Spending Category

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 1865 and 1861.

Compare these values to the overall average of 16.66% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1861 → 1865
Food and beverages 0.00 0.00 1.00
Housing 0.00 0.00 1.00
Apparel 0.00 0.00 1.00
Transportation 0.00 0.00 1.00
Medical care 0.00 0.00 1.00
Recreation 0.00 0.00 1.00
Education and communication 0.00 0.00 1.00
Other goods and services 0.00 0.00 1.00

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 1865. This table and charts use the earliest available data for each category.

## How to Calculate Inflation Rate for \$1, 1861 to 1865

Our calculations use the following inflation rate formula to calculate the change in value between 1861 and 1865:

CPI in 1861 CPI in 1865
×
1865 USD value
=
1861 USD value

Then plug in historical CPI values. The U.S. CPI was 16.3 in the year 1865 and 8.8 in 1861:

8.816.3
×
\$1
=
\$0.54

\$1 in 1865 has the same "purchasing power" or "buying power" as \$0.54 in 1861.

To get the total inflation rate for the 4 years between 1861 and 1865, we use the following formula:

CPI in 1861 - CPI in 1865CPI in 1865
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

8.8 - 16.316.3
×
100
=
-46%

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

• America abolishes slavery after Congress passes the 13th Amendment.
• John Wilkes Booth assassinates President Abraham Lincoln at Ford's Theater, in Washington.
• The New York Stock Exchange opens its first permanent headquarters at 10-12 Broad Street.
• Columbia, South Carolina burns during the American Civil War.

## Data Source & Citation

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: “\$1 in 1865 → 1861 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 6 Jun. 2020, https://www.officialdata.org/1865-dollars-in-1861?amount=1.