# \$100 in 1925 is worth \$4,175.69 today

\$

## Why a dollar today is worth only 2% of a dollar in 1925

Updated: May 12, 2020

According to the Bureau of Statistics consumer price index, today's prices in 2020 are 4,075.69% higher than average prices since 1925. This means that a dollar today only buys 2.39% of what it could buy in 1925. The Australian dollar experienced an average inflation rate of 4.01% per year during this period, causing the real value of a dollar to decrease.

In other words, \$100 in 1925 is equivalent in purchasing power to about \$4,175.69 in 2020, a difference of \$4,075.69 over 95 years.

The 1925 inflation rate was 0.00%. The current year-over-year inflation rate (2019 to 2020) is now 1.90%1. If this number holds, \$100 today will be equivalent in buying power to \$101.90 next year.

 Cumulative price change 4,075.69% Average inflation rate 4.01% Converted amount (\$100 base) \$4,175.69 Price difference (\$100 base) \$4,075.69 CPI in 1925 2.800 CPI in 2020 116.919 Inflation in 1925 0.00% Inflation in 2020 1.90%

AUD Inflation since 1922
Annual Rate, the Bureau of Statistics CPI

## Buying power of \$100 in 1925

This chart shows a calculation of buying power equivalence for \$100 in 1925 (price index tracking began in 1922).

For example, if you started with \$100, you would need to end with \$4,175.69 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$100 is equivalent to \$4,175.69 over time, that means that the "real value" of a single Australian 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 1925 dollars, the chart below shows how \$100 is worth less over 95 years.

According to the Bureau of Statistics, each of these AUD amounts below is equal in terms of what it could buy at the time:

Dollar inflation: 1925-2020
Year Dollar Value Inflation Rate
1925 \$100.00 -
1926 \$103.57 3.57%
1927 \$100.00 -3.45%
1928 \$103.57 3.57%
1929 \$103.57 0.00%
1930 \$96.43 -6.90%
1931 \$89.29 -7.41%
1932 \$85.71 -4.00%
1933 \$82.14 -4.17%
1934 \$82.14 0.00%
1935 \$85.71 4.35%
1936 \$85.71 0.00%
1937 \$89.29 4.17%
1938 \$92.86 4.00%
1939 \$92.86 0.00%
1940 \$96.43 3.85%
1941 \$100.00 3.70%
1942 \$110.71 10.71%
1943 \$114.29 3.23%
1944 \$114.29 0.00%
1945 \$114.29 0.00%
1946 \$114.29 0.00%
1947 \$121.43 6.25%
1948 \$132.14 8.82%
1949 \$142.86 8.11%
1950 \$157.14 10.00%
1951 \$185.71 18.18%
1952 \$217.86 17.31%
1953 \$228.57 4.92%
1954 \$232.14 1.56%
1955 \$235.71 1.54%
1956 \$250.00 6.06%
1957 \$257.14 2.86%
1958 \$257.14 0.00%
1959 \$264.29 2.78%
1960 \$275.00 4.05%
1961 \$278.57 1.30%
1962 \$278.57 0.00%
1963 \$282.14 1.28%
1964 \$289.29 2.53%
1965 \$300.00 3.70%
1966 \$307.14 2.38%
1967 \$317.86 3.49%
1968 \$328.57 3.37%
1969 \$339.29 3.26%
1970 \$350.00 3.16%
1971 \$371.43 6.12%
1972 \$392.86 5.77%
1973 \$428.57 9.09%
1974 \$496.43 15.83%
1975 \$571.43 15.11%
1976 \$646.43 13.13%
1977 \$725.00 12.15%
1978 \$782.14 7.88%
1979 \$853.57 9.13%
1980 \$942.86 10.46%
1981 \$1,032.14 9.47%
1982 \$1,146.43 11.07%
1983 \$1,264.29 10.28%
1984 \$1,314.29 3.95%
1985 \$1,400.00 6.52%
1986 \$1,528.57 9.18%
1987 \$1,657.14 8.41%
1988 \$1,778.57 7.33%
1989 \$1,910.71 7.43%
1990 \$2,053.57 7.48%
1991 \$2,117.86 3.13%
1992 \$2,139.29 1.01%
1993 \$2,175.00 1.67%
1994 \$2,217.86 1.97%
1995 \$2,321.43 4.67%
1996 \$2,382.14 2.62%
1997 \$2,389.29 0.30%
1998 \$2,407.14 0.75%
1999 \$2,442.86 1.48%
2000 \$2,553.57 4.53%
2001 \$2,664.29 4.34%
2002 \$2,746.43 3.08%
2003 \$2,821.43 2.73%
2004 \$2,885.71 2.28%
2005 \$2,964.29 2.72%
2006 \$3,067.86 3.49%
2007 \$3,139.29 2.33%
2008 \$3,278.57 4.44%
2009 \$3,335.71 1.74%
2010 \$3,432.14 2.89%
2011 \$3,546.43 3.33%
2012 \$3,607.14 1.71%
2013 \$3,696.43 2.48%
2014 \$3,789.29 2.51%
2015 \$3,846.43 1.51%
2016 \$3,896.43 1.30%
2017 \$3,971.43 1.92%
2018 \$4,021.43 1.26%
2019 \$4,097.84 1.90%
2020 \$4,175.69 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 89 more rows

This conversion table shows various other 1925 amounts in today's dollars, based on the 4,075.69% change in prices:

Conversion Table: Value of a dollar today
Initial value Equivalent value
\$1 dollar in 1925 \$41.76 dollars today
\$5 dollars in 1925 \$208.78 dollars today
\$10 dollars in 1925 \$417.57 dollars today
\$50 dollars in 1925 \$2,087.85 dollars today
\$100 dollars in 1925 \$4,175.69 dollars today
\$500 dollars in 1925 \$20,878.47 dollars today
\$1,000 dollars in 1925 \$41,756.95 dollars today
\$5,000 dollars in 1925 \$208,784.73 dollars today
\$10,000 dollars in 1925 \$417,569.46 dollars today
\$50,000 dollars in 1925 \$2,087,847.30 dollars today
\$100,000 dollars in 1925 \$4,175,694.59 dollars today
\$500,000 dollars in 1925 \$20,878,472.96 dollars today
\$1,000,000 dollars in 1925 \$41,756,945.93 dollars today

## How to Calculate Inflation Rate for \$100 since 1925

Our calculations use the following inflation rate formula to calculate the change in value between 1925 and today:

CPI today CPI in 1925
×
1925 AUD value
=
Today's value

Then plug in historical CPI values. The Australian CPI was 2.8 in the year 1925 and 116.91944859999998 in 2020:

116.919448599999982.8
×
\$100
=
\$4,175.69

\$100 in 1925 has the same "purchasing power" or "buying power" as \$4,175.69 in 2020.

To get the total inflation rate for the 95 years between 1925 and 2020, we use the following formula:

CPI in 2020 - CPI in 1925CPI in 1925
×
100
=
Cumulative inflation rate (95 years)

Plugging in the values to this equation, we get:

116.91944859999998 - 2.82.8
×
100
=
4,076%

## News headlines from 1925

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

• The Ku Klux Klan's first national march takes place in Washington.
• The last Qajar Shah of Iran is deposed with Reza Shah Pahlavi taking over.
• Scopes monkey trial ends in Dayton, Tennessee, finding John T. Scopes guilty of teaching evolution.

## Data Source & Citation

Raw data for these calculations comes from the government of Australia's annual (CPI) as provided by the Reserve Bank of Australia. The consumer price index was established in 1922 and is tracked by Australian Bureau of Statistics (ABS).

You may use the following MLA citation for this page: “Value of 1925 dollars today | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 3 Jun. 2020, https://www.officialdata.org/au/inflation/1925.

Special thanks to QuickChart for providing downloadable chart images.

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 4,075.69% Average inflation rate 4.01% Converted amount (\$100 base) \$4,175.69 Price difference (\$100 base) \$4,075.69 CPI in 1925 2.800 CPI in 2020 116.919 Inflation in 1925 0.00% Inflation in 2020 1.90%