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\$15,000 in 1989 → \$30,926.31 in 2019

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U.S. Inflation Rate, \$15,000 in 1989 to 2019

According to the Bureau of Labor Statistics consumer price index, prices in 2019 are 106.18% higher than average prices since 1989. The U.S. dollar experienced an average inflation rate of 2.44% per year during this period, meaning the real value of a dollar decreased.

In other words, \$15,000 in 1989 is equivalent in purchasing power to about \$30,926.31 in 2019, a difference of \$15,926.31 over 30 years.

The 1989 inflation rate was 4.82%. The inflation rate in 2019 was 1.76%. The 2019 inflation rate is higher compared to the average inflation rate of 0.51% per year between 2019 and 2020.

 Cumulative price change 106.18% Average inflation rate 2.44% Converted amount (\$15,000 base) \$30,926.31 Price difference (\$15,000 base) \$15,926.31 CPI in 1989 124.000 CPI in 2019 255.658 Inflation in 1989 4.82% Inflation in 2019 1.76%

USD Inflation since 1913
Annual Rate, the Bureau of Labor Statistics CPI

Buying power of \$15,000 in 1989

This chart shows a calculation of buying power equivalence for \$15,000 in 1989 (price index tracking began in 1635).

For example, if you started with \$15,000, you would need to end with \$30,926.31 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$15,000 is equivalent to \$30,926.31 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 1989 dollars, the chart below shows how \$15,000 buys less over the past 30 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:

Year Dollar Value Inflation Rate
1989 \$15,000.00 4.82%
1990 \$15,810.48 5.40%
1991 \$16,475.81 4.21%
1992 \$16,971.77 3.01%
1993 \$17,479.84 2.99%
1994 \$17,927.42 2.56%
1995 \$18,435.48 2.83%
1996 \$18,979.84 2.95%
1997 \$19,415.32 2.29%
1998 \$19,717.74 1.56%
1999 \$20,153.23 2.21%
2000 \$20,830.65 3.36%
2001 \$21,423.39 2.85%
2002 \$21,762.10 1.58%
2003 \$22,258.06 2.28%
2004 \$22,850.81 2.66%
2005 \$23,625.00 3.39%
2006 \$24,387.10 3.23%
2007 \$25,081.69 2.85%
2008 \$26,044.72 3.84%
2009 \$25,952.06 -0.36%
2010 \$26,377.74 1.64%
2011 \$27,210.36 3.16%
2012 \$27,773.47 2.07%
2013 \$28,180.28 1.46%
2014 \$28,637.42 1.62%
2015 \$28,671.41 0.12%
2016 \$29,033.10 1.26%
2017 \$29,651.61 2.13%
2018 \$30,390.73 2.49%
2019 \$30,926.31 1.76%
2020 \$31,085.56 0.51%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 24 more rows

Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1989 to 2019 (figures shown are purchasing power equivalents of \$15,000):

San Diego, California experienced the highest rate of inflation during the 30 years between 1989 and 2019 (3.44%).

St Louis, Missouri experienced the lowest rate of inflation during the 30 years between 1989 and 2019 (2.15%).

Note that some locations showing 0% inflation may have not yet reported latest data.

Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £15,000.00 in 1989 would be equivalent to £37,010.63 in 2019, an absolute change of £22,010.63 and a cumulative change of 146.74%.

In Canada, CA\$15,000.00 in 1989 would be equivalent to CA\$26,294.35 in 2019, an absolute change of CA\$11,294.35 and a cumulative change of 75.30%.

Compare these numbers to the US's overall absolute change of \$15,926.31 and total percent change of 106.18%.

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 1989 and 2019.

Compare these values to the overall average of 2.44% per year:

Category Avg Inflation (%) Total Inflation (%) \$15,000 in 1989 → 2019
Food and beverages 2.45 106.56 30,984.66
Housing 2.60 116.22 32,432.95
Apparel 0.15 4.61 15,691.54
Transportation 2.06 84.11 27,616.33
Medical care 4.10 233.96 50,093.77
Recreation 1.10 38.70 20,804.44
Education and communication 1.85 73.27 25,991.01
Other goods and services 3.79 205.57 45,835.93

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 1989. This table and charts use the earliest available data for each category.

How to Calculate Inflation Rate for \$15,000, 1989 to 2019

This inflation calculator uses the following inflation rate formula:

CPI in 2019CPI in 1989
×
1989 USD value
=
2019 USD value

Then plug in historical CPI values. The U.S. CPI was 124 in the year 1989 and 255.6575 in 2019:

255.6575124
×
\$15,000
=
\$30,926.31

\$15,000 in 1989 has the same "purchasing power" or "buying power" as \$30,926.31 in 2019.

To get the total inflation rate for the 30 years between 1989 and 2019, we use the following formula:

CPI in 2019 - CPI in 1989CPI in 1989
×
100
=
Cumulative inflation rate (30 years)

Plugging in the values to this equation, we get:

255.6575 - 124124
×
100
=
106%

Alternate Measurements of Inflation

The above data describe the CPI for all items. Also of note is the Core CPI, which measures inflation for all items except for the more volatile categories of food and energy. Core inflation averaged 2.41% per year between 1989 and 2019 (vs all-CPI inflation of 2.44%), for an inflation total of 104.08%.

When using the core inflation measurement, \$15,000 in 1989 is equivalent in buying power to \$30,611.39 in 2019, a difference of \$15,611.39. Recall that for All Items, the converted amount is \$30,926.31 with a difference of \$15,926.31.

In 1989, core inflation was 4.51%.

Comparison to S&P 500 Index

The average inflation rate of 2.44% has a compounding effect between 1989 and 2019. As noted above, this yearly inflation rate compounds to produce an overall price difference of 106.18% over 30 years.

To help put this inflation into perspective, if we had invested \$15,000 in the S&P 500 index in 1989, our investment would be nominally worth approximately \$322,797.78 in 2019. This is a return on investment of 2,051.99%, with an absolute return of \$307,797.78 on top of the original \$15,000.

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 51.50% of returns (\$166,233.14) during this period. This means the inflation-adjusted real return of our \$15,000 investment is \$141,564.64. You may also want to account for capital gains tax, which would take your real return down to around \$120,330 for most people.

Investment in S&P 500 Index, 1989-2019
Original Amount Final Amount Change
Nominal \$15,000 \$322,797.78 2,051.99%
Real
\$15,000 \$156,564.64 943.76%

Information displayed above may differ slightly from other S&P 500 calculators. Minor discrepancies can occur because we use the latest CPI data for inflation, annualized inflation numbers for previous years, and we compute S&P price and dividends from January of 1989 to latest available data for 2019 using average monthly close price.

For more details on the S&P 500 between 1989 and 2019, see the stock market returns calculator.

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

• Chinese troops kill thousands of students protesting at Tiananmen Square.
• The first (partially) free elections take place in Poland, bringing democracy to Eastern Europe for the first time in 40 years. (Won by the Solidarity Party)
• The demolition of the Berlin Wall begins.
• Presidents George H. W. Bush and Mikhail Gorbachev declare that the Cold War has ended.

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: “\$15,000 in 1989 → 2019 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Jan. 2020, https://www.officialdata.org/1989-dollars-in-2019?amount=15000.