# \$900 in 2015 is worth \$973.56 today

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## Value of \$900 from 2015 to 2020

According to the Bureau of Labor Statistics consumer price index, today's prices in 2020 are 8.17% higher than average prices since 2015. The U.S. dollar experienced an average inflation rate of 1.58% per year during this period, causing the real value of a dollar to decrease.

In other words, \$900 in 2015 is equivalent in purchasing power to about \$973.56 in 2020, a difference of \$73.56 over 5 years.

The 2015 inflation rate was 0.12%. The current year-over-year inflation rate (2019 to 2020) is now 0.33%1. If this number holds, \$900 today will be equivalent in buying power to \$902.96 next year. The current inflation rate page gives more detail on the latest official inflation rates.

 Cumulative price change 8.17% Average inflation rate 1.58% Converted amount (\$900 base) \$973.56 Price difference (\$900 base) \$73.56 CPI in 2015 237.017 CPI in 2020 256.389 Inflation in 2015 0.12% Inflation in 2020 0.33%

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

## Buying power of \$900 in 2015

This chart shows a calculation of buying power equivalence for \$900 in 2015 (price index tracking began in 1635).

For example, if you started with \$900, you would need to end with \$973.56 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$900 is equivalent to \$973.56 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 2015 dollars, the chart below shows how \$900 is worth less over 5 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: 2015-2020
Year Dollar Value Inflation Rate
2015 \$900.00 0.12%
2016 \$911.35 1.26%
2017 \$930.77 2.13%
2018 \$953.97 2.49%
2019 \$970.78 1.76%
2020 \$973.56 0.29%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2015 amounts in today's dollars, based on the 8.17% change in prices:

Conversion Table: Value of a dollar today
Initial value Equivalent value
\$1 dollar in 2015 \$1.08 dollars today
\$5 dollars in 2015 \$5.41 dollars today
\$10 dollars in 2015 \$10.82 dollars today
\$50 dollars in 2015 \$54.09 dollars today
\$100 dollars in 2015 \$108.17 dollars today
\$500 dollars in 2015 \$540.87 dollars today
\$1,000 dollars in 2015 \$1,081.73 dollars today
\$5,000 dollars in 2015 \$5,408.66 dollars today
\$10,000 dollars in 2015 \$10,817.33 dollars today
\$50,000 dollars in 2015 \$54,086.63 dollars today
\$100,000 dollars in 2015 \$108,173.25 dollars today
\$500,000 dollars in 2015 \$540,866.27 dollars today
\$1,000,000 dollars in 2015 \$1,081,732.53 dollars today

## Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 2015 to 2020 (figures shown are purchasing power equivalents of \$900):

San Diego, California experienced the highest rate of inflation during the 5 years between 2015 and 2020 (4.60%).

Philadelphia, Pennsylvania experienced the lowest rate of inflation during the 5 years between 2015 and 2020 (1.16%).

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 £900.00 in 2015 would be equivalent to £1,004.33 in 2020, an absolute change of £104.33 and a cumulative change of 11.59%.

In Canada, CA\$900.00 in 2015 would be equivalent to CA\$970.43 in 2020, an absolute change of CA\$70.43 and a cumulative change of 7.83%.

Compare these numbers to the US's overall absolute change of \$73.56 and total percent change of 8.17%.

## 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 2015 and 2020.

Compare these values to the overall average of 1.58% per year:

Category Avg Inflation (%) Total Inflation (%) \$900 in 2015 → 2020
Food and beverages 1.23 6.32 956.91
Housing 2.56 13.50 1,021.49
Apparel -0.65 -3.20 871.21
Transportation 0.43 2.18 919.64
Medical care 2.83 14.96 1,034.61
Recreation 1.00 5.10 945.91
Education and communication 0.16 0.81 907.27
Other goods and services 2.10 10.95 998.56

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 2015. This table and charts use the earliest available data for each category.

## How to Calculate Inflation Rate for \$900 since 2015

Our calculations use the following inflation rate formula to calculate the change in value between 2015 and today:

CPI today CPI in 2015
×
2015 USD value
=
Today's value

Then plug in historical CPI values. The U.S. CPI was 237.017 in the year 2015 and 256.389 in 2020:

256.389237.017
×
\$900
=
\$973.56

\$900 in 2015 has the same "purchasing power" or "buying power" as \$973.56 in 2020.

To get the total inflation rate for the 5 years between 2015 and 2020, we use the following formula:

CPI in 2020 - CPI in 2015CPI in 2015
×
100
=
Cumulative inflation rate (5 years)

Plugging in the values to this equation, we get:

256.389 - 237.017237.017
×
100
=
8%

## 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 1.94% per year between 2015 and 2020 (vs all-CPI inflation of 1.58%), for an inflation total of 10.08%.

When using the core inflation measurement, \$900 in 2015 is equivalent in buying power to \$990.73 in 2020, a difference of \$90.73. Recall that for All Items, the converted amount is \$973.56 with a difference of \$73.56.

In 2015, core inflation was 1.83%.

Chained CPI is an alternative measurement that takes into account how consumers adjust spending for similar items. Chained inflation averaged 1.38% per year between 2015 and 2020, a total inflation amount of 10.08%.

According to the Chained CPI measurement, \$900 in 2015 is equal in buying power to \$963.67 in 2020, a difference of \$63.67 (versus a converted amount of \$973.56/change of \$73.56 for All Items).

In 2015, chained inflation was -0.12%.

## Comparison to S&P 500 Index

The average inflation rate of 1.58% has a compounding effect between 2015 and 2020. As noted above, this yearly inflation rate compounds to produce an overall price difference of 8.17% over 5 years.

To help put this inflation into perspective, if we had invested \$900 in the S&P 500 index in 2015, our investment would be nominally worth approximately \$1,354.00 in 2020. This is a return on investment of 50.44%, with an absolute return of \$454.00 on top of the original \$900.

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 7.56% of returns (\$102.30) during this period. This means the inflation-adjusted real return of our \$900 investment is \$351.70. You may also want to account for capital gains tax, which would take your real return down to around \$299 for most people.

Investment in S&P 500 Index, 2015-2020
Original Amount Final Amount Change
Nominal \$900 \$1,354.00 50.44%
Real
\$900 \$1,251.70 39.08%

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 2015 to latest available data for 2020 using average monthly close price.

For more details on the S&P 500 between 2015 and 2020, see the stock market returns calculator.

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

• Barack Obama and Raul Castro, hold the first meeting between Cuban and American leaders since the Cuban Revolution.
• The population of India reaches 1 billion (officially). The billionth baby was named Astha Arora.
• Donald Trump announces his intention to join the US presidential campaign.
• China brings an end to its one child policy, 35 years after it was first introduced.

## 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: “\$900 in 2015 → 2020 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 24 May. 2020, https://www.officialdata.org/us/inflation/2015?amount=900.