In today’s economy, knowing the real value of money from the past is essential for financial planning, investments, and historical comparisons. If you’ve ever wondered, “What is $100 from 1987 worth today?”, you’re not alone. Our 1987 Inflation Calculator makes it easy to calculate the current value of any amount from 1987 using official Consumer Price Index (CPI) data. Whether you’re evaluating past purchases, pensions, or economic trends, this tool provides the clarity you need.
1987 Inflation Calculator
How to Use the 1987 Inflation Calculator
Using our calculator is simple and efficient. Here’s how:
- Enter the Amount in 1987 Dollars
Input the amount of money you want to convert from 1987. - Select the Target Year (Default: Current Year)
The calculator automatically selects the latest year for comparison, but you can choose any year from 1988 to the present. - Click ‘Calculate’
Instantly see what the 1987 amount is worth in today’s dollars based on the average annual inflation rate.
Formula Used for the Calculation
The calculator uses the CPI (Consumer Price Index) to adjust historical amounts. The formula is:
Adjusted Amount = Amount in 1987 × (CPI in Target Year ÷ CPI in 1987)
For example, if the CPI in 1987 was 113.6 and the CPI in 2025 is 316.0:
Adjusted Value = $100 × (316.0 ÷ 113.6) ≈ $278.10
This means $100 in 1987 has the same buying power as about $278.10 in 2025.
Example Calculations
Here are some sample results using 2025 as the target year:
- $100 in 1987 → ~$278.10 in 2025
- $1,000 in 1987 → ~$2,781 in 2025
- $5,000 in 1987 → ~$13,905 in 2025
These results reflect how inflation has steadily reduced the purchasing power of money over the decades.
Why Use a 1987 Inflation Calculator?
- Understand Long-Term Financial Impact: Perfect for retirees, investors, and economists wanting to analyze changes in real value.
- Business Planning: Adjust old budgets or contracts to reflect modern dollar values.
- Historical Research: Convert past financial data for comparative analysis.
- Estate or Legal Settlements: Determine the equivalent modern value for claims or inheritances.
How Accurate Is the Calculator?
The calculator uses U.S. Bureau of Labor Statistics CPI data, ensuring reliable and up-to-date figures. The CPI is the standard for measuring inflation and reflects changes in the cost of a typical basket of goods and services over time.
Important Considerations
- Inflation Is an Average: The CPI reflects average price changes. Your personal experience with inflation (e.g., rent, gas, groceries) may vary.
- Non-US Users: This tool is based on U.S. inflation data; it’s not suitable for other countries without adjustments.
- Annual CPI Values: The calculator uses average annual CPI values, not monthly, for a consistent year-over-year comparison.
1987 Economic Context
To appreciate the inflation rate, it’s helpful to consider the economic landscape of 1987:
- CPI in 1987: 113.6
- U.S. Average Income: Around $24,350
- Gasoline Price: ~$0.90/gallon
- Dow Jones Year-End: ~1,938 points
Major events included the 1987 stock market crash (“Black Monday”) and the continuation of Reaganomics policies, both influencing inflation.
Benefits of Using This Calculator Tool
- Fast and user-friendly
- Reliable CPI-based results
- No need for manual calculations
- Helps with historical financial planning
- Perfect for students, researchers, and professionals
Frequently Asked Questions (FAQs)
1. What is $100 from 1987 worth today?
As of 2025, about $278.10 due to cumulative inflation over time.
2. How does the calculator work?
It uses CPI data from the U.S. Bureau of Labor Statistics to adjust values.
3. Can I choose a year other than 2025?
Yes, you can select any year after 1987 up to the current year.
4. Is the result accurate?
Yes, it’s accurate based on official CPI data, but real-life costs can vary.
5. Is this tool free?
Yes, our 1987 Inflation Calculator is completely free to use.
6. Does it support other currencies?
No, it’s designed specifically for U.S. dollars.
7. Can I use this for budgeting?
Yes, it’s ideal for adjusting historical budgets to today’s value.
8. Is CPI the same as inflation?
CPI is a key measure of inflation but not the only one.
9. Can I calculate reverse inflation (future to past)?
Yes, by entering a recent year and comparing it to 1987.
10. Does it adjust for taxes or interest?
No, it only adjusts for inflation using CPI.
11. Why is CPI important?
It measures how prices change over time, affecting everything from wages to rent.
12. Where does the CPI data come from?
From the U.S. Bureau of Labor Statistics.
13. What if I want monthly CPI adjustments?
This calculator uses annual data; for monthly, you’d need a specialized tool.
14. Is 1987 considered a high-inflation year?
No, inflation was moderate in 1987.
15. Can I embed this calculator on my site?
You’ll need to contact the website owner or developer for that feature.
16. How often is CPI updated?
The BLS updates CPI monthly and annually.
17. Is this tool useful for legal or insurance cases?
Yes, it helps determine fair value adjustments over time.
18. Can I use this for pension planning?
Absolutely. It’s ideal for adjusting retirement expectations.
19. Does this consider regional inflation?
No, it uses national average CPI.
20. Why does money lose value over time?
Due to inflation, which increases the cost of goods and services.
Conclusion
Understanding how inflation affects the value of money is critical in today’s economy. With the 1987 Inflation Calculator, you can quickly convert any past dollar amount into today’s value, helping you make smarter decisions in business, budgeting, historical analysis, and retirement planning. Whether you’re an economist or just a curious individual, this tool provides fast, reliable insights into the real impact of inflation.