Value of $25,000 from 1983 to 2014

According to the Bureau of Labor Statistics consumer price index, prices in 2014 are 137.69% higher than average prices since 1983. The U.S. dollar experienced an average inflation rate of 2.83% per year during this period, causing the real value of a dollar to decrease.

In other words, $25,000 in 1983 is equivalent in purchasing power to about $59,421.69 in 2014, a difference of $34,421.69 over 31 years.

The 1983 inflation rate was 3.21%. The inflation rate in 2014 was 1.62%. The 2014 inflation rate is higher compared to the average inflation rate of 1.57% per year between 2014 and 2020.

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Inflation from 1983 to 2014 Cumulative price change 137.69% Average inflation rate 2.83% Converted amount ($25,000 base) $59,421.69 Price difference ($25,000 base) $34,421.69 CPI in 1983 99.600 CPI in 2014 236.736 Inflation in 1983 3.21% Inflation in 2014 1.62%

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

Buying power of $25,000 in 1983 This chart shows a calculation of buying power equivalence for $25,000 in 1983 (price index tracking began in 1635). For example, if you started with $25,000, you would need to end with $59,421.69 in order to "adjust" for inflation (sometimes refered to as "beating inflation"). Download When $25,000 is equivalent to $59,421.69 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 1983 dollars, the chart below shows how $25,000 is worth less over 31 years. Download 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: 1983-2014 Year Dollar Value Inflation Rate 1983 $25,000.00 3.21% 1984 $26,079.32 4.32% 1985 $27,008.03 3.56% 1986 $27,510.04 1.86% 1987 $28,514.06 3.65% 1988 $29,693.78 4.14% 1989 $31,124.50 4.82% 1990 $32,806.22 5.40% 1991 $34,186.75 4.21% 1992 $35,215.86 3.01% 1993 $36,270.08 2.99% 1994 $37,198.80 2.56% 1995 $38,253.01 2.83% 1996 $39,382.53 2.95% 1997 $40,286.14 2.29% 1998 $40,913.65 1.56% 1999 $41,817.27 2.21% 2000 $43,222.89 3.36% 2001 $44,452.81 2.85% 2002 $45,155.62 1.58% 2003 $46,184.74 2.28% 2004 $47,414.66 2.66% 2005 $49,021.08 3.39% 2006 $50,602.41 3.23% 2007 $52,043.67 2.85% 2008 $54,041.92 3.84% 2009 $53,849.65 -0.36% 2010 $54,732.93 1.64% 2011 $56,460.59 3.16% 2012 $57,629.02 2.07% 2013 $58,473.14 1.46% 2014 $59,421.69 1.62% 2015 $59,492.22 0.12% 2016 $60,242.72 1.26% 2017 $61,526.10 2.13% 2018 $63,059.74 2.49% 2019 $64,171.06 1.76% 2020 $65,240.46 1.67%* * Compared to previous annual rate. Not final. See * Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value. Click to show 25 more rows Download as CSV/Excel This conversion table shows various other 1983 amounts in 2014 dollars, based on the 137.69% change in prices: Conversion Table: Value of a dollar in 2014 Initial value Equivalent value $1 dollar in 1983 $2.38 dollars in 2014 $5 dollars in 1983 $11.88 dollars in 2014 $10 dollars in 1983 $23.77 dollars in 2014 $50 dollars in 1983 $118.84 dollars in 2014 $100 dollars in 1983 $237.69 dollars in 2014 $500 dollars in 1983 $1,188.43 dollars in 2014 $1,000 dollars in 1983 $2,376.87 dollars in 2014 $5,000 dollars in 1983 $11,884.34 dollars in 2014 $10,000 dollars in 1983 $23,768.67 dollars in 2014 $50,000 dollars in 1983 $118,843.37 dollars in 2014 $100,000 dollars in 1983 $237,686.75 dollars in 2014 $500,000 dollars in 1983 $1,188,433.73 dollars in 2014 $1,000,000 dollars in 1983 $2,376,867.47 dollars in 2014

Inflation by City Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1983 to 2014 (figures shown are purchasing power equivalents of $25,000): New York : 3.14% average rate, $25,000 → $65,166.01 , cumulative change of 160.66%

: average rate, $25,000 → , cumulative change of San Francisco, California : 3.08% average rate, $25,000 → $64,059.89 , cumulative change of 156.24%

: average rate, $25,000 → , cumulative change of Boston, Massachusetts : 3.08% average rate, $25,000 → $64,026.69 , cumulative change of 156.11%

: average rate, $25,000 → , cumulative change of Seattle, Washington : 2.97% average rate, $25,000 → $61,990.23 , cumulative change of 147.96%

: average rate, $25,000 → , cumulative change of Philadelphia, Pennsylvania : 2.94% average rate, $25,000 → $61,380.44 , cumulative change of 145.52%

: average rate, $25,000 → , cumulative change of Miami-Fort Lauderdale, Florida : 2.92% average rate, $25,000 → $60,945.89 , cumulative change of 143.78%

: average rate, $25,000 → , cumulative change of Chicago, Illinois : 2.70% average rate, $25,000 → $57,107.42 , cumulative change of 128.43%

: average rate, $25,000 → , cumulative change of Detroit, Michigan : 2.61% average rate, $25,000 → $55,582.07 , cumulative change of 122.33%

: average rate, $25,000 → , cumulative change of Atlanta, Georgia : 2.60% average rate, $25,000 → $55,355.17 , cumulative change of 121.42%

: average rate, $25,000 → , cumulative change of Dallas-Fort Worth, Texas : 2.57% average rate, $25,000 → $54,910.22 , cumulative change of 119.64%

: average rate, $25,000 → , cumulative change of Houston, Texas: 2.48% average rate, $25,000 → $53,361.41 , cumulative change of 113.45% New York experienced the highest rate of inflation during the 31 years between 1983 and 2014 (3.14%). Houston, Texas experienced the lowest rate of inflation during the 31 years between 1983 and 2014 (2.48%). 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 £25,000.00 in 1983 would be equivalent to £75,350.64 in 2014, an absolute change of £50,350.64 and a cumulative change of 201.40%. In Canada, CA$25,000.00 in 1983 would be equivalent to CA$52,576.01 in 2014, an absolute change of CA$27,576.01 and a cumulative change of 110.30%. Compare these numbers to the US's overall absolute change of $34,421.69 and total percent change of 137.69%.

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 1983 and 2014. Compare these values to the overall average of 2.83% per year: Category Avg Inflation (%) Total Inflation (%) $25,000 in 1983 → 2014 Food and beverages 2.92 143.72 60,930.99 Housing 2.79 134.47 58,616.31 Apparel 0.78 27.27 31,817.37 Transportation 2.54 117.44 54,361.15 Medical care 4.84 332.46 108,114.74 Recreation 1.15 42.63 35,657.54 Education and communication 2.28 101.45 50,361.48 Other goods and services 4.60 303.26 100,814.52 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 1983. This table and charts use the earliest available data for each category.

How to Calculate Inflation Rate for $25,000, 1983 to 2014 Our calculations use the following inflation rate formula to calculate the change in value between 1983 and 2014: CPI in 2014 CPI in 1983 × 1983 USD value = 2014 USD value Then plug in historical CPI values. The U.S. CPI was 99.6 in the year 1983 and 236.736 in 2014: 236.736 99.6 × $25,000 = $59,421.69 $25,000 in 1983 has the same "purchasing power" or "buying power" as $59,421.69 in 2014. To get the total inflation rate for the 31 years between 1983 and 2014, we use the following formula: CPI in 2014 - CPI in 1983 CPI in 1983 × 100 = Cumulative inflation rate (31 years) Plugging in the values to this equation, we get: 236.736 - 99.6 99.6 × 100 = 138%

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 2.85% per year between 1983 and 2014 (vs all-CPI inflation of 2.83%), for an inflation total of 138.82%. When using the core inflation measurement, $25,000 in 1983 is equivalent in buying power to $59,703.82 in 2014, a difference of $34,703.82. Recall that for All Items, the converted amount is $59,421.69 with a difference of $34,421.69. In 1983, core inflation was 3.93%.

Comparison to S&P 500 Index The average inflation rate of 2.83% has a compounding effect between 1983 and 2014. As noted above, this yearly inflation rate compounds to produce an overall price difference of 137.69% over 31 years. To help put this inflation into perspective, if we had invested $25,000 in the S&P 500 index in 1983, our investment would be nominally worth approximately $765,362.37 in 2014. This is a return on investment of 2,961.45%, with an absolute return of $740,362.37 on top of the original $25,000. 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 57.93% of returns ($443,357.72) during this period. This means the inflation-adjusted real return of our $25,000 investment is $297,004.65. You may also want to account for capital gains tax, which would take your real return down to around $252,454 for most people. Investment in S&P 500 Index, 1983-2014 Original Amount Final Amount Change Nominal $25,000 $765,362.37 2,961.45% Real

Inflation Adjusted $25,000 $322,004.65 1,188.02% 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 1983 to latest available data for 2014 using average monthly close price. For more details on the S&P 500 between 1983 and 2014, see the stock market returns calculator.

News headlines from 1983 Politics and news often influence economic performance. Here's what was happening at the time: 26 million pounds in gold, diamonds and cash is stolen from Brink's-Mat warehouse at Heathrow Airport in London, which is considered to be one of the world's greatest robberies.

Ronald Reagan ends the United States embargo against Guatemala.

Data Source & Citation

Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (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: “$25,000 in 1983 → 2014 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Sep. 2020, https://www.officialdata.org/1983-dollars-in-2014?amount=25000.

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.