\$45,400 in 1986 → \$90,326.12 in 2010

Inflation Calculator

\$

U.S. Inflation Rate, \$45,400 from 1986 to 2010

According to the Bureau of Labor Statistics consumer price index, prices in 2010 are 98.96% higher than average prices since 1986. The U.S. dollar experienced an average inflation rate of 2.91% per year during this period, meaning the real value of a dollar decreased.

In other words, \$45,400 in 1986 is equivalent in purchasing power to about \$90,326.12 in 2010, a difference of \$44,926.12 over 24 years.

The 1986 inflation rate was 1.86%. The inflation rate in 2010 was 1.64%. The 2010 inflation rate is lower compared to the average inflation rate of 1.72% per year between 2010 and 2020.

 Cumulative price change 98.96% Average inflation rate 2.91% Converted amount (\$45,400 base) \$90,326.12 Price difference (\$45,400 base) \$44,926.12 CPI in 1986 109.600 CPI in 2010 218.056 Inflation in 1986 1.86% Inflation in 2010 1.64%

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

Buying power of \$45,400 in 1986

This chart shows a calculation of buying power equivalence for \$45,400 in 1986 (price index tracking began in 1635).

For example, if you started with \$45,400, you would need to end with \$90,326.12 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$45,400 is equivalent to \$90,326.12 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 1986 dollars, the chart below shows how \$45,400 buys less over the past 24 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
1986 \$45,400.00 1.86%
1987 \$47,056.93 3.65%
1988 \$49,003.83 4.14%
1989 \$51,364.96 4.82%
1990 \$54,140.33 5.40%
1991 \$56,418.61 4.21%
1992 \$58,116.97 3.01%
1993 \$59,856.75 2.99%
1994 \$61,389.42 2.56%
1995 \$63,129.20 2.83%
1996 \$64,993.25 2.95%
1997 \$66,484.49 2.29%
1998 \$67,520.07 1.56%
1999 \$69,011.31 2.21%
2000 \$71,331.02 3.36%
2001 \$73,360.77 2.85%
2002 \$74,520.62 1.58%
2003 \$76,218.98 2.28%
2004 \$78,248.72 2.66%
2005 \$80,899.82 3.39%
2006 \$83,509.49 3.23%
2007 \$85,888.02 2.85%
2008 \$89,185.73 3.84%
2009 \$88,868.43 -0.36%
2010 \$90,326.12 1.64%
2011 \$93,177.29 3.16%
2012 \$95,105.54 2.07%
2013 \$96,498.61 1.46%
2014 \$98,064.00 1.62%
2015 \$98,180.40 0.12%
2016 \$99,418.96 1.26%
2017 \$101,536.93 2.13%
2018 \$104,067.90 2.49%
2019 \$105,901.92 1.76%
2020 \$107,153.11 1.18%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 18 more rows

Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1986 to 2010 (figures shown are purchasing power equivalents of \$45,400):

San Diego, California experienced the highest rate of inflation during the 24 years between 1986 and 2010 (3.53%).

Atlanta, Georgia experienced the lowest rate of inflation during the 24 years between 1986 and 2010 (2.51%).

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 £45,400.00 in 1986 would be equivalent to £103,752.94 in 2010, an absolute change of £58,352.94 and a cumulative change of 128.53%.

In Canada, CA\$45,400.00 in 1986 would be equivalent to CA\$79,857.78 in 2010, an absolute change of CA\$34,457.78 and a cumulative change of 75.90%.

Compare these numbers to the US's overall absolute change of \$44,926.12 and total percent change of 98.96%.

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 1986 and 2010.

Compare these values to the overall average of 2.91% per year:

Category Avg Inflation (%) Total Inflation (%) \$45,400 in 1986 → 2010
Food and beverages 2.97 101.71 91,576.56
Housing 2.82 95.01 88,536.04
Apparel 0.50 12.83 51,224.28
Transportation 2.69 89.02 85,814.81
Medical care 4.94 217.95 144,347.16
Recreation 1.31 36.63 62,029.65
Education and communication 2.49 80.33 81,870.47
Other goods and services 4.88 213.58 142,366.17

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 1986. This table and charts use the earliest available data for each category.

How to Calculate Inflation Rate for \$45,400, 1986 to 2010

This inflation calculator uses the following inflation rate formula:

CPI in 2010CPI in 1986
×
1986 USD value
=
2010 USD value

Then plug in historical CPI values. The U.S. CPI was 109.6 in the year 1986 and 218.056 in 2010:

218.056109.6
×
\$45,400
=
\$90,326.12

\$45,400 in 1986 has the same "purchasing power" or "buying power" as \$90,326.12 in 2010.

To get the total inflation rate for the 24 years between 1986 and 2010, we use the following formula:

CPI in 2010 - CPI in 1986CPI in 1986
×
100
=
Cumulative inflation rate (24 years)

Plugging in the values to this equation, we get:

218.056 - 109.6109.6
×
100
=
99%

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 2.82% per year between 1986 and 2010 (vs all-CPI inflation of 2.91%), for an inflation total of 94.97%.

When using the core inflation measurement, \$45,400 in 1986 is equivalent in buying power to \$88,516.62 in 2010, a difference of \$43,116.62. Recall that for All Items, the converted amount is \$90,326.12 with a difference of \$44,926.12.

In 1986, core inflation was 4.04%.

Comparison to S&P 500 Index

The average inflation rate of 2.91% has a compounding effect between 1986 and 2010. As noted above, this yearly inflation rate compounds to produce an overall price difference of 98.96% over 24 years.

To help put this inflation into perspective, if we had invested \$45,400 in the S&P 500 index in 1986, our investment would be nominally worth approximately \$494,630.90 in 2010. This is a return on investment of 989.50%, with an absolute return of \$449,230.90 on top of the original \$45,400.

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 49.74% of returns (\$246,017.95) during this period. This means the inflation-adjusted real return of our \$45,400 investment is \$203,212.96. You may also want to account for capital gains tax, which would take your real return down to around \$172,731 for most people.

Investment in S&P 500 Index, 1986-2010
Original Amount Final Amount Change
Nominal \$45,400 \$494,630.90 989.50%
Real
\$45,400 \$248,612.96 447.61%

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 1986 to latest available data for 2010 using average monthly close price.

For more details on the S&P 500 between 1986 and 2010, see the stock market returns calculator.

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

• Ferdinand Marcos becomes president of the Philippines after rigged elections.
• 6.5 million People hold hands across the US in an event referred to as Hands Across America.
• Doctors announce that the drug AZT will be available to AIDS patients.
• Talks between Ronald Reagan and Mikhail Gorbachev begin at the Reykjavik summit.
• Mrs. Davina Thompson receives the first heart, lung and liver transplant in Cambridge, England.

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: “\$45,400 in 1986 → 2010 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 5 Apr. 2020, https://www.officialdata.org/us/inflation/1986?endYear=2010&amount=45400.