Inflation Calculator
U.S. Inflation Rate, $500 in 1865 to 2019
According to the Bureau of Labor Statistics consumer price index, today's prices in 2019 are 1,478.81% higher than average prices throughout 1865. The dollar experienced an average inflation rate of 1.81% per year during this period, meaning the real value of a dollar decreased.
In other words, $500 in 1865 is equivalent in purchasing power to about $7,894.05 in 2019, a difference of $7,394.05 over 154 years.
The 1865 inflation rate was 3.82%. The current inflation rate (2018 to 2019) is now 1.76%1. If this number holds, $500 today will be equivalent in buying power to $508.82 next year. The current inflation rate page gives more detail on the latest official inflation rates.
Contents
⌃
| Cumulative price change | 1,478.81% |
| Average inflation rate | 1.81% |
| Converted amount ($500 base) | $7,894.05 |
| Price difference ($500 base) | $7,394.05 |
| CPI in 1865 | 16.300 |
| CPI in 2019 | 257.346 |
| Inflation in 1865 | 3.82% |
| Inflation in 2019 | 1.76% |
Buying power of $500 in 1865
This chart shows calculation of buying power equivalence, often referred to as "the value of a dollar" over time for $500 in 1865 (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 £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 $7,394.05 and total percent change of 1,478.81%.
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 1865 and 2019.
Compare these values to the overall average of 1.81% per year:
| Category | Avg Inflation (%) | Total Inflation (%) | $500 in 1865 → 2019 |
|---|---|---|---|
| Food and beverages | 3.91 | 36,900.30 | 185,001.50 |
| Housing | 4.23 | 58,834.20 | 294,671.02 |
| Apparel | 2.02 | 2,089.05 | 10,945.26 |
| Transportation | 3.26 | 13,891.00 | 69,955.00 |
| Medical care | 5.13 | 221,189.00 | 1,106,445.01 |
| Recreation | 1.09 | 429.16 | 2,645.82 |
| Education and communication | 1.84 | 1,569.51 | 8,347.57 |
| Other goods and services | 5.03 | 192,005.36 | 960,526.79 |
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 since 1865
This inflation calculator uses the following inflation rate formula:
CPI in 2019CPI in 1865
×
1865 USD value
=
2019 USD value
Then plug in historical CPI values. The U.S. CPI was 16.3 in the year 1865 and 257.346 in 2019:
257.34616.3
×
$500
=
$7,894.05
$500 in 1865 has the same "purchasing power" or "buying power" as $7,894.05 in 2019.
To get the total inflation rate for the 154 years between 1865 and 2019, we use the following formula:
CPI in 2019 - CPI in 1865CPI in 1865
×
100
=
Cumulative inflation rate (154 years)
Plugging in the values to this equation, we get:
257.346 - 16.316.3
×
100
=
1,479%
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.
You may use the following MLA citation for this page: “$500 in 1865 → 2019 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 7 Dec. 2019, https://www.officialdata.org/1865-dollars-in-2019?amount=500.
Special thanks to QuickChart for providing downloadable chart images.
in2013dollars.com is a reference website maintained by the Official Data Foundation.
| Cumulative price change | 1,478.81% |
| Average inflation rate | 1.81% |
| Converted amount ($500 base) | $7,894.05 |
| Price difference ($500 base) | $7,394.05 |
| CPI in 1865 | 16.300 |
| CPI in 2019 | 257.346 |
| Inflation in 1865 | 3.82% |
| Inflation in 2019 | 1.76% |