$500 in 1865 is worth $7,842.25 in 2019

Buying power of $500 in 1865

This chart shows a calculation of buying power equivalence for $500 in 1865 (price index tracking began in 1635).

For example, if you started with $500, you would need to end with $7,842.25 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $500 is equivalent to $7,842.25 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 1865 dollars, the chart below shows how $500 is worth less over 154 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 1865 amounts in 2019 dollars, based on the 1,468.45% change in prices:

Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £500.00 in 1865 would be equivalent to £62,301.22 in 2019, an absolute change of £61,801.22 and a cumulative change of 12,360.24%.

Compare these numbers to the US's overall absolute change of $7,342.25 and total percent change of 1,468.45%.

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 2019.

Compare these values to the overall average of 1.80% per year:

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 $500, 1865 to 2019

Our calculations use the following inflation rate formula to calculate the change in value between 1865 and 2019:

Then plug in historical CPI values. The U.S. CPI was 16.3 in the year 1865 and 255.6575 in 2019:

$500 in 1865 has the same "purchasing power" or "buying power" as $7,842.25 in 2019.

To get the total inflation rate for the 154 years between 1865 and 2019, we use the following formula:

Plugging in the values to this equation, we get:

News headlines from 1865

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' 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.

» Read more about inflation and investment.