# \$3 in 1895 is worth \$97.70 today

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## Value of \$3 from 1895 to 2021

\$3 in 1895 is equivalent in purchasing power to about \$97.70 today, an increase of \$94.70 over 126 years. The dollar had an average inflation rate of 2.80% per year between 1895 and today, producing a cumulative price increase of 3,156.75%.

This means that today's prices are 32.57 times higher than average prices since 1895, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 3.07% of what it could buy back then.

The 1895 inflation rate was -2.33%. The current year-over-year inflation rate (2020 to 2021) is now 5.25%1. If this number holds, \$3 today will be equivalent in buying power to \$3.16 next year. The current inflation rate page gives more detail on the latest inflation rates.

 Cumulative price change 3,156.75% Average inflation rate 2.80% Converted amount (\$3 base) \$97.70 Price difference (\$3 base) \$94.70 CPI in 1895 8.400 CPI in 2021 273.567 Inflation in 1895 -2.33% Inflation in 2021 5.25% \$3 in 1895 \$97.70 in 2021

USD Inflation since 1635
Annual Rate, the Bureau of Labor Statistics CPI

## Buying power of \$3 in 1895

This chart shows a calculation of buying power equivalence for \$3 in 1895 (price index tracking began in 1635).

For example, if you started with \$3, you would need to end with \$97.70 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$3 is equivalent to \$97.70 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 1895 dollars, the chart below shows how \$3 is worth less over 126 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: 1895-2021
Year Dollar Value Inflation Rate
1895 \$3.00 -2.33%
1896 \$3.00 0.00%
1897 \$2.96 -1.19%
1898 \$2.96 0.00%
1899 \$2.96 0.00%
1900 \$3.00 1.20%
1901 \$3.04 1.19%
1902 \$3.07 1.18%
1903 \$3.14 2.33%
1904 \$3.18 1.14%
1905 \$3.14 -1.12%
1906 \$3.21 2.27%
1907 \$3.36 4.44%
1908 \$3.29 -2.13%
1909 \$3.25 -1.09%
1910 \$3.39 4.40%
1911 \$3.39 0.00%
1912 \$3.46 2.11%
1913 \$3.54 2.06%
1914 \$3.57 1.01%
1915 \$3.61 1.00%
1916 \$3.89 7.92%
1917 \$4.57 17.43%
1918 \$5.39 17.97%
1919 \$6.18 14.57%
1920 \$7.14 15.61%
1921 \$6.39 -10.50%
1922 \$6.00 -6.15%
1923 \$6.11 1.79%
1924 \$6.11 0.00%
1925 \$6.25 2.34%
1926 \$6.32 1.14%
1927 \$6.21 -1.69%
1928 \$6.11 -1.72%
1929 \$6.11 0.00%
1930 \$5.96 -2.34%
1931 \$5.43 -8.98%
1932 \$4.89 -9.87%
1933 \$4.64 -5.11%
1934 \$4.79 3.08%
1935 \$4.89 2.24%
1936 \$4.96 1.46%
1937 \$5.14 3.60%
1938 \$5.04 -2.08%
1939 \$4.96 -1.42%
1940 \$5.00 0.72%
1941 \$5.25 5.00%
1942 \$5.82 10.88%
1943 \$6.18 6.13%
1944 \$6.29 1.73%
1945 \$6.43 2.27%
1946 \$6.96 8.33%
1947 \$7.96 14.36%
1948 \$8.61 8.07%
1949 \$8.50 -1.24%
1950 \$8.61 1.26%
1951 \$9.29 7.88%
1952 \$9.46 1.92%
1953 \$9.54 0.75%
1954 \$9.61 0.75%
1955 \$9.57 -0.37%
1956 \$9.71 1.49%
1957 \$10.04 3.31%
1958 \$10.32 2.85%
1959 \$10.39 0.69%
1960 \$10.57 1.72%
1961 \$10.68 1.01%
1962 \$10.79 1.00%
1963 \$10.93 1.32%
1964 \$11.07 1.31%
1965 \$11.25 1.61%
1966 \$11.57 2.86%
1967 \$11.93 3.09%
1968 \$12.43 4.19%
1969 \$13.11 5.46%
1970 \$13.86 5.72%
1971 \$14.46 4.38%
1972 \$14.93 3.21%
1973 \$15.86 6.22%
1974 \$17.61 11.04%
1975 \$19.21 9.13%
1976 \$20.32 5.76%
1977 \$21.64 6.50%
1978 \$23.29 7.59%
1979 \$25.93 11.35%
1980 \$29.43 13.50%
1981 \$32.46 10.32%
1982 \$34.46 6.16%
1983 \$35.57 3.21%
1984 \$37.11 4.32%
1985 \$38.43 3.56%
1986 \$39.14 1.86%
1987 \$40.57 3.65%
1988 \$42.25 4.14%
1989 \$44.29 4.82%
1990 \$46.68 5.40%
1991 \$48.64 4.21%
1992 \$50.11 3.01%
1993 \$51.61 2.99%
1994 \$52.93 2.56%
1995 \$54.43 2.83%
1996 \$56.04 2.95%
1997 \$57.32 2.29%
1998 \$58.21 1.56%
1999 \$59.50 2.21%
2000 \$61.50 3.36%
2001 \$63.25 2.85%
2002 \$64.25 1.58%
2003 \$65.71 2.28%
2004 \$67.46 2.66%
2005 \$69.75 3.39%
2006 \$72.00 3.23%
2007 \$74.05 2.85%
2008 \$76.89 3.84%
2009 \$76.62 -0.36%
2010 \$77.88 1.64%
2011 \$80.34 3.16%
2012 \$82.00 2.07%
2013 \$83.20 1.46%
2014 \$84.55 1.62%
2015 \$84.65 0.12%
2016 \$85.72 1.26%
2017 \$87.54 2.13%
2018 \$89.73 2.49%
2019 \$91.31 1.76%
2020 \$92.43 1.23%
2021 \$97.70 5.70%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 120 more rows

This conversion table shows various other 1895 amounts in today's dollars, based on the 3,156.75% change in prices:

Conversion: 1895 dollars today
Initial value Equivalent value
\$1 dollar in 1895 \$32.57 dollars today
\$5 dollars in 1895 \$162.84 dollars today
\$10 dollars in 1895 \$325.68 dollars today
\$50 dollars in 1895 \$1,628.38 dollars today
\$100 dollars in 1895 \$3,256.75 dollars today
\$500 dollars in 1895 \$16,283.75 dollars today
\$1,000 dollars in 1895 \$32,567.50 dollars today
\$5,000 dollars in 1895 \$162,837.50 dollars today
\$10,000 dollars in 1895 \$325,675.00 dollars today
\$50,000 dollars in 1895 \$1,628,375.00 dollars today
\$100,000 dollars in 1895 \$3,256,750.00 dollars today
\$500,000 dollars in 1895 \$16,283,750.00 dollars today
\$1,000,000 dollars in 1895 \$32,567,500.00 dollars today

## Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £3.00 in 1895 would be equivalent to £404.63 in 2021, an absolute change of £401.63 and a cumulative change of 13,387.80%.

Compare these numbers to the US's overall absolute change of \$94.70 and total percent change of 3,156.75%.

## 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 1895 and 2021.

Compare these values to the overall average of 2.80% per year:

Category Avg Inflation (%) Total Inflation (%) \$3 in 1895 → 2021
Food and beverages 3.88 12,014.64 363.44
Housing 4.16 16,879.21 509.38
Apparel 1.95 1,041.25 34.24
Transportation 3.26 5,620.47 171.61
Medical care 4.69 31,994.08 962.82
Recreation 1.13 310.01 12.30
Education and communication 1.83 879.76 29.39
Other goods and services 4.94 43,290.68 1,301.72

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 1895. This table and charts use the earliest available data for each category.

## How to Calculate Inflation Rate for \$3 since 1895

Our calculations use the following inflation rate formula to calculate the change in value between 1895 and today:

CPI today CPI in 1895
×
1895 USD value
=
Today's value

Then plug in historical CPI values. The U.S. CPI was 8.4 in the year 1895 and 273.567 in 2021:

273.5678.4
×
\$3
=
\$97.70

\$3 in 1895 has the same "purchasing power" or "buying power" as \$97.70 in 2021.

To get the total inflation rate for the 126 years between 1895 and 2021, we use the following formula:

CPI in 2021 - CPI in 1895CPI in 1895
×
100
=
Cumulative inflation rate (126 years)

Plugging in the values to this equation, we get:

273.567 - 8.48.4
×
100
=
3,157%

## Comparison to S&P 500 Index

The average inflation rate of 2.80% has a compounding effect between 1895 and 2021. As noted above, this yearly inflation rate compounds to produce an overall price difference of 3,156.75% over 126 years.

To help put this inflation into perspective, if we had invested \$3 in the S&P 500 index in 1895, our investment would be nominally worth approximately \$539,899.58 in 2021. This is a return on investment of 17,996,552.63%, with an absolute return of \$539,896.58 on top of the original \$3.

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 96.93% of returns (\$523,321.72) during this period. This means the inflation-adjusted real return of our \$3 investment is \$16,574.86. You may also want to account for capital gains tax, which would take your real return down to around \$14,089 for most people.

Investment in S&P 500 Index, 1895-2021
Original Amount Final Amount Change
Nominal \$3 \$539,899.58 17,996,552.63%
Real
\$3 \$16,577.86 552,495.46%

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 1895 to latest available data for 2021 using average monthly close price.

For more details on the S&P 500 between 1895 and 2021, see the stock market returns calculator.

## News headlines from 1895

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

• Italy invades Abyssinia (Ethiopia today).
• First Sino-Japanese war finishes after signing the Treaty of Shimonoseki.
• Electromagnetic radiation in a wavelength range today known as X-rays were produced by Wilhelm Rontgen, a German physicist.
• The Nobel Prize is established in the will of Swedish chemist Alfred Nobel.

## 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: “\$3 in 1895 → 2021 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 17 Sep. 2021, https://www.officialdata.org/us/inflation/1895?amount=3&endYear=2021.

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 3,156.75% Average inflation rate 2.80% Converted amount (\$3 base) \$97.70 Price difference (\$3 base) \$94.70 CPI in 1895 8.400 CPI in 2021 273.567 Inflation in 1895 -2.33% Inflation in 2021 5.25% \$3 in 1895 \$97.70 in 2021