# \$20,000 in 2017 is worth \$22,109.18 in 2021

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## Value of \$20,000 from 2017 to 2021

\$20,000 in 2017 is equivalent in purchasing power to about \$22,109.18 in 2021, an increase of \$2,109.18 over 4 years. The dollar had an average inflation rate of 2.54% per year between 2017 and 2021, producing a cumulative price increase of 10.55%.

This means that prices in 2021 are 1.11 times higher than average prices since 2017, according to the Bureau of Labor Statistics consumer price index.

The inflation rate in 2017 was 2.13%. The inflation rate in 2021 was 4.70%. The 2021 inflation rate is higher compared to the average inflation rate of 2.89% per year between 2021 and 2022.

 Cumulative price change 10.55% Average inflation rate 2.54% Converted amount (\$20,000 base) \$22,109.18 Price difference (\$20,000 base) \$2,109.18 CPI in 2017 245.120 CPI in 2021 270.970 Inflation in 2017 2.13% Inflation in 2021 4.70% \$20,000 in 2017 \$22,109.18 in 2021

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

## Buying power of \$20,000 in 2017

This chart shows a calculation of buying power equivalence for \$20,000 in 2017 (price index tracking began in 1635).

For example, if you started with \$20,000, you would need to end with \$22,109.18 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$20,000 is equivalent to \$22,109.18 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 2017 dollars, the chart below shows how \$20,000 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: 2017-2021
Year Dollar Value Inflation Rate
2017 \$20,000.00 2.13%
2018 \$20,498.53 2.49%
2019 \$20,859.78 1.76%
2020 \$21,117.14 1.23%
2021 \$22,109.18 4.70%
2022 \$22,748.20 2.89%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2017 amounts in 2021 dollars, based on the 10.55% change in prices:

Conversion: 2017 dollars in 2021
Initial value Equivalent value
\$1 dollar in 2017 \$1.11 dollars in 2021
\$5 dollars in 2017 \$5.53 dollars in 2021
\$10 dollars in 2017 \$11.05 dollars in 2021
\$50 dollars in 2017 \$55.27 dollars in 2021
\$100 dollars in 2017 \$110.55 dollars in 2021
\$500 dollars in 2017 \$552.73 dollars in 2021
\$1,000 dollars in 2017 \$1,105.46 dollars in 2021
\$5,000 dollars in 2017 \$5,527.30 dollars in 2021
\$10,000 dollars in 2017 \$11,054.59 dollars in 2021
\$50,000 dollars in 2017 \$55,272.96 dollars in 2021
\$100,000 dollars in 2017 \$110,545.92 dollars in 2021
\$500,000 dollars in 2017 \$552,729.62 dollars in 2021
\$1,000,000 dollars in 2017 \$1,105,459.23 dollars in 2021

## Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 2017 to 2021 (figures shown are purchasing power equivalents of \$20,000):

San Diego, California experienced the highest rate of inflation during the 4 years between 2017 and 2021 (3.51%).

St Louis, Missouri experienced the lowest rate of inflation during the 4 years between 2017 and 2021 (1.86%).

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 £20,000.00 in 2017 would be equivalent to £21,921.51 in 2021, an absolute change of £1,921.51 and a cumulative change of 9.61%.

In Canada, CA\$20,000.00 in 2017 would be equivalent to CA\$21,681.57 in 2021, an absolute change of CA\$1,681.57 and a cumulative change of 8.41%.

Compare these numbers to the US's overall absolute change of \$2,109.18 and total percent change of 10.55%.

## 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.

Between 2017 and 2021:

This chart shows the average rate of inflation for select CPI categories between 2017 and 2021.

Compare these values to the overall average of 2.54% per year:

Category Avg Inflation (%) Total Inflation (%) \$20,000 in 2017 → 2021
Food and beverages 2.60 10.80 22,159.80
Housing 2.81 11.74 22,348.08
Apparel -0.93 -3.68 19,264.51
Transportation 3.43 14.43 22,886.60
Medical care 2.53 10.51 22,101.92
Recreation 1.38 5.64 21,127.32
Education and communication 1.10 4.47 20,894.82
Other goods and services 2.46 10.23 22,045.61

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 2017. This table and charts use the earliest available data for each category.

## How to Calculate Inflation Rate for \$20,000, 2017 to 2021

Our calculations use the following inflation rate formula to calculate the change in value between 2017 and 2021:

CPI in 2021 CPI in 2017
×
2017 USD value
=
2021 USD value

Then plug in historical CPI values. The U.S. CPI was 245.12 in the year 2017 and 270.97016666667 in 2021:

270.97016666667245.12
×
\$20,000
=
\$22,109.18

\$20,000 in 2017 has the same "purchasing power" or "buying power" as \$22,109.18 in 2021.

To get the total inflation rate for the 4 years between 2017 and 2021, we use the following formula:

CPI in 2021 - CPI in 2017CPI in 2017
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

270.97016666667 - 245.12245.12
×
100
=
11%

## 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 2.40% per year between 2017 and 2021 (vs all-CPI inflation of 2.54%), for an inflation total of 9.95%.

When using the core inflation measurement, \$20,000 in 2017 is equivalent in buying power to \$21,989.59 in 2021, a difference of \$1,989.59. Recall that for All Items, the converted amount is \$22,109.18 with a difference of \$2,109.18.

In 2017, core inflation was 1.84%.

Chained CPI is an alternative measurement that takes into account how consumers adjust spending for similar items. Chained inflation averaged 2.29% per year between 2017 and 2021, a total inflation amount of 9.50%.

According to the Chained CPI measurement, \$20,000 in 2017 is equal in buying power to \$21,899.22 in 2021, a difference of \$1,899.22 (versus a converted amount of \$22,109.18/change of \$2,109.18 for All Items).

In 2017, chained inflation was 1.76%.

## Comparison to S&P 500 Index

The average inflation rate of 2.54% has a compounding effect between 2017 and 2021. As noted above, this yearly inflation rate compounds to produce an overall price difference of 10.55% over 4 years.

To help put this inflation into perspective, if we had invested \$20,000 in the S&P 500 index in 2017, our investment would be nominally worth approximately \$46,074.75 in 2021. This is a return on investment of 130.37%, with an absolute return of \$26,074.75 on top of the original \$20,000.

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 9.54% of returns (\$4,395.47) during this period. This means the inflation-adjusted real return of our \$20,000 investment is \$21,679.28. You may also want to account for capital gains tax, which would take your real return down to around \$18,427 for most people.

Investment in S&P 500 Index, 2017-2021
Original Amount Final Amount Change
Nominal \$20,000 \$46,074.75 130.37%
Real
\$20,000 \$41,679.28 108.40%

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 2017 to latest available data for 2021 using average monthly close price.

For more details on the S&P 500 between 2017 and 2021, see the stock market returns calculator.

## News headlines from 2017

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

• Donald Trump sworn in as the 45th president of the United States.
• Hurricanes Harvey and Irma strike southeast Texas and Florida, causing extensive flooding and damage.
• Gunman kills 58 people at a Las Vegas concert, making it the deadliest mass shooting in modern U.S. history.
• North Korea tests a hydrogen bomb and over a dozen ballistic missiles amidst soaring tensions with the U.S.

## 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: “\$20,000 in 2017 → 2021 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Jan. 2022, https://www.officialdata.org/2017-dollars-in-2021?amount=20000.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

in2013dollars.com is a reference website maintained by the Official Data Foundation.

#### About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

 Cumulative price change 10.55% Average inflation rate 2.54% Converted amount (\$20,000 base) \$22,109.18 Price difference (\$20,000 base) \$2,109.18 CPI in 2017 245.120 CPI in 2021 270.970 Inflation in 2017 2.13% Inflation in 2021 4.70% \$20,000 in 2017 \$22,109.18 in 2021