Value of $1,000,000 from 1996 to 2023
$1,000,000 in 1996 is equivalent in purchasing power to about $1,956,985.34 today, an increase of $956,985.34 over 27 years. The dollar had an average inflation rate of 2.52% per year between 1996 and today, producing a cumulative price increase of 95.70%.
This means that today's prices are 1.96 times as high as average prices since 1996, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 51.099% of what it could buy back then.
The inflation rate in 1996 was 2.95%. The current inflation rate compared to last year is now 3.14%. If this number holds, $1,000,000 today will be equivalent in buying power to $1,031,372.71 next year. The current inflation rate page gives more detail on the latest inflation rates.
Contents
- Overview
- Buying Power of $1,000,000
- Inflation by City / Country
- Inflation by Spending Category
- Alternate Measurements
- Data Source
⌃
| Cumulative price change | 95.70% |
| Average inflation rate | 2.52% |
| Converted amount $1,000,000 base | $1,956,985.34 |
| Price difference $1,000,000 base | $956,985.34 |
| CPI in 1996 | 156.900 |
| CPI in 2023 | 307.051 |
| Inflation in 1996 | 2.95% |
| Inflation in 2023 | 3.14% |
| $1,000,000 in 1996 | $1,956,985.34 in 2023 |
USD inflation since 1996
Annual Rate, the Bureau of Labor Statistics CPI
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Buying power of $1,000,000 in 1996
This chart shows a calculation of buying power equivalence for $1,000,000 in 1996 (price index tracking began in 1635).
For example, if you started with $1,000,000, you would need to end with $1,956,985.34 in order to "adjust" for inflation (sometimes refered to as "beating inflation").
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When $1,000,000 is equivalent to $1,956,985.34 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 1996 dollars, the chart below shows how $1,000,000 is worth less over 27 years.
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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 |
|---|---|---|
| 1996 | $1,000,000.00 | 2.95% |
| 1997 | $1,022,944.55 | 2.29% |
| 1998 | $1,038,878.27 | 1.56% |
| 1999 | $1,061,822.82 | 2.21% |
| 2000 | $1,097,514.34 | 3.36% |
| 2001 | $1,128,744.42 | 2.85% |
| 2002 | $1,146,590.18 | 1.58% |
| 2003 | $1,172,721.48 | 2.28% |
| 2004 | $1,203,951.56 | 2.66% |
| 2005 | $1,244,741.87 | 3.39% |
| 2006 | $1,284,894.84 | 3.23% |
| 2007 | $1,321,491.40 | 2.85% |
| 2008 | $1,372,230.72 | 3.84% |
| 2009 | $1,367,348.63 | -0.36% |
| 2010 | $1,389,776.93 | 1.64% |
| 2011 | $1,433,645.63 | 3.16% |
| 2012 | $1,463,314.21 | 2.07% |
| 2013 | $1,484,748.25 | 1.46% |
| 2014 | $1,508,833.65 | 1.62% |
| 2015 | $1,510,624.60 | 0.12% |
| 2016 | $1,529,681.33 | 1.26% |
| 2017 | $1,562,268.96 | 2.13% |
| 2018 | $1,601,210.96 | 2.49% |
| 2019 | $1,629,429.57 | 1.76% |
| 2020 | $1,649,532.61 | 1.23% |
| 2021 | $1,727,024.64 | 4.70% |
| 2022 | $1,865,237.94 | 8.00% |
| 2023 | $1,956,985.34 | 4.92%* |
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 21 more rows
This conversion table shows various other 1996 amounts in today's dollars, based on the 95.70% change in prices:
| Initial value | Equivalent value |
|---|---|
| $1 dollar in 1996 | $1.96 dollars today |
| $5 dollars in 1996 | $9.78 dollars today |
| $10 dollars in 1996 | $19.57 dollars today |
| $50 dollars in 1996 | $97.85 dollars today |
| $100 dollars in 1996 | $195.70 dollars today |
| $500 dollars in 1996 | $978.49 dollars today |
| $1,000 dollars in 1996 | $1,956.99 dollars today |
| $5,000 dollars in 1996 | $9,784.93 dollars today |
| $10,000 dollars in 1996 | $19,569.85 dollars today |
| $50,000 dollars in 1996 | $97,849.27 dollars today |
| $100,000 dollars in 1996 | $195,698.53 dollars today |
| $500,000 dollars in 1996 | $978,492.67 dollars today |
| $1,000,000 dollars in 1996 | $1,956,985.34 dollars today |
Inflation by City
Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1996 to 2023 (figures shown are purchasing power equivalents of $1,000,000):
- Seattle, Washington: 4.38% average rate, $1,000,000 → $3,179,583.33, cumulative change of 217.96%
- San Diego, California: 4.14% average rate, $1,000,000 → $2,870,955.13, cumulative change of 187.10%
- Atlanta, Georgia: 3.71% average rate, $1,000,000 → $2,670,851.98, cumulative change of 167.09%
- San Francisco, California: 2.93% average rate, $1,000,000 → $2,182,338.13, cumulative change of 118.23%
- Miami-Fort Lauderdale, Florida: 2.92% average rate, $1,000,000 → $2,175,970.01, cumulative change of 117.60%
- Tampa, Florida: 2.85% average rate, $1,000,000 → $2,079,004.56, cumulative change of 107.90%
- Denver, Colorado: 2.68% average rate, $1,000,000 → $1,988,399.74, cumulative change of 98.84%
- Boston, Massachusetts: 2.59% average rate, $1,000,000 → $1,995,572.15, cumulative change of 99.56%
- Dallas-Fort Worth, Texas: 2.47% average rate, $1,000,000 → $1,930,891.97, cumulative change of 93.09%
- New York: 2.46% average rate, $1,000,000 → $1,927,530.87, cumulative change of 92.75%
- Minneapolis-St Paul, Minnesota: 2.45% average rate, $1,000,000 → $1,876,287.03, cumulative change of 87.63%
- Houston, Texas: 2.35% average rate, $1,000,000 → $1,871,602.41, cumulative change of 87.16%
- Philadelphia, Pennsylvania: 2.32% average rate, $1,000,000 → $1,856,864.44, cumulative change of 85.69%
- Detroit, Michigan: 2.31% average rate, $1,000,000 → $1,850,734.55, cumulative change of 85.07%
- St Louis, Missouri: 2.25% average rate, $1,000,000 → $1,823,877.01, cumulative change of 82.39%
- Chicago, Illinois: 2.19% average rate, $1,000,000 → $1,793,522.69, cumulative change of 79.35%
Seattle, Washington experienced the highest rate of inflation during the 27 years between 1996 and 2023 (4.38%).
Chicago, Illinois experienced the lowest rate of inflation during the 27 years between 1996 and 2023 (2.19%).
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 £1,000,000.00 in 1996 would be equivalent to £2,314,865.61 in 2023, an absolute change of £1,314,865.61 and a cumulative change of 131.49%.
In Canada, CA$1,000,000.00 in 1996 would be equivalent to CA$1,775,387.10 in 2023, an absolute change of CA$775,387.10 and a cumulative change of 77.54%.
Compare these numbers to the US's overall absolute change of $956,985.34 and total percent change of 95.70%.
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.
Between 1996 and 2023:
- Gas prices increased from $1.13 per gallon to $3.50
- Bread prices increased from $0.86 per loaf to $1.98
- Egg prices increased from $1.16 per carton to $2.14
- Chicken prices increased from $0.94 per per 1 lb of whole chicken to $1.98
- Electricity prices increased from $0.09 per KwH to $0.17
This chart shows the average rate of inflation for select CPI categories between 1996 and 2023.
Compare these values to the overall average of 2.52% per year:
| Category | Avg Inflation (%) | Total Inflation (%) | $1,000,000 in 1996 → 2023 |
|---|---|---|---|
| Food and beverages | 2.76 | 108.36 | 2,083,601.29 |
| Housing | 2.77 | 109.23 | 2,092,321.56 |
| Apparel | -0.02 | -0.52 | 994,788.43 |
| Transportation | 2.34 | 86.89 | 1,868,870.60 |
| Medical care | 3.30 | 140.42 | 2,404,157.72 |
| Recreation | 1.24 | 39.64 | 1,396,394.93 |
| Education and communication | 1.57 | 52.35 | 1,523,533.58 |
| Other goods and services | 3.44 | 149.02 | 2,490,153.75 |
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 1996. This table and charts use the earliest available data for each category.
Inflation rates of specific categories
Medical Care · Housing · Rent · Food · More
Inflation-adjusted measures
How to calculate inflation rate for $1,000,000 since 1996
Our calculations use the following inflation rate formula to calculate the change in value between 1996 and today:
CPI today CPI in 1996
×
1996 USD value
=
Today's value
Then plug in historical CPI values. The U.S. CPI was 156.9 in the year 1996 and 307.051 in 2023:
307.051156.9
×
$1,000,000
=
$1,956,985.34
$1,000,000 in 1996 has the same "purchasing power" or "buying power" as $1,956,985.34 in 2023.
To get the total inflation rate for the 27 years between 1996 and 2023, we use the following formula:
CPI in 2023 - CPI in 1996CPI in 1996
×
100
=
Cumulative inflation rate (27 years)
Plugging in the values to this equation, we get:
307.051 - 156.9156.9
×
100
=
96%
Alternate Measurements of Inflation
There are multiple ways to measure inflation. Published rates of inflation will vary depending on methodology. The Consumer Price Index, used above, is the most common standard used globally.
Alternative measurements are sometimes used based on context and economic/political circ*mstances. Below are a few examples of alternative measurements.
Personal Consumption Expenditures (PCE) Inflation
The PCE Price Index is the U.S. Federal Reserve's preferred measure of inflation, compiled by the Bureau of Economic Analysis. It measures the change in prices of goods and services purchased by consumers.
The PCE Price Index changed by 2.07% per year on average between 1996 and 2023. The total PCE inflation between these dates was 73.71%. In 1996, PCE inflation was 2.14%.
This means that the PCE Index equates $1,000,000 in 1996 with $1,737,055.74 in 2023, a difference of $737,055.74. Compare this to the standard CPI measurement, which equates $1,000,000 with $1,956,985.34. The PCE measured -21.99% inflation compared to standard CPI.
For more information on the difference between PCE and CPI, see this analysis provided by the Bureau of Labor Statistics.
Core Inflation
Also of note is the Core CPI, which uses the standard CPI but omits the more volatile categories of food and energy.
Core inflation averaged 2.33% per year between 1996 and 2023 (vs all-CPI inflation of 2.52%), for an inflation total of 86.07%. In 1996, core inflation was 2.71%.
When using the core inflation measurement, $1,000,000 in 1996 is equivalent in buying power to $1,860,698.96 in 2023, a difference of $860,698.96. Recall that the converted amount is $1,956,985.34 when all items including food and energy are measured.
Comparison to S&P 500 Index
The average inflation rate of 2.52% has a compounding effect between 1996 and 2023. As noted above, this yearly inflation rate compounds to produce an overall price difference of 95.70% over 27 years.
To help put this inflation into perspective, if we had invested $1,000,000 in the S&P 500 index in 1996, our investment would be nominally worth approximately $12,084,527.81 in 2023. This is a return on investment of 1,108.45%, with an absolute return of $11,084,527.81 on top of the original $1,000,000.
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 48.90% of returns ($5,909,454.57) during this period. This means the inflation-adjusted real return of our $1,000,000 investment is $5,175,073.24. You may also want to account for capital gains tax, which would take your real return down to around $4,398,812 for most people.
| Original Amount | Final Amount | Change | |
|---|---|---|---|
| Nominal | $1,000,000 | $12,084,527.81 | 1,108.45% |
| Real Inflation Adjusted | $1,000,000 | $6,175,073.24 | 517.51% |
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 1996 to latest available data for 2023 using average monthly close price.
For more details on the S&P 500 between 1996 and 2023, see the stock market returns calculator.
Data source & citation
Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (CPI), established in 1913. Price index data from 1774 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University and from the American Antiquarian Society. Price index data from 1634 to 1773 is from the American Antiquarian Society, using British pound equivalents.
You may use the following MLA citation for this page: “$1,000,000 in 1996 → 2023 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 12 Dec. 2023, https://www.officialdata.org/us/inflation/1996?amount=1000000.
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.
Greetings, I'm Ian Webster, an engineer and data expert based in San Mateo, California. Throughout my career, I have worked for esteemed organizations such as Google and NASA, contributing my expertise to projects involving data pipelines and analysis. My passion for clear and impactful resources on economic indicators, particularly the effects of inflation, led me to create this valuable public tool.
Now, let's delve into the information presented in the article about the value of $1,000,000 from 1996 to 2023:
Overview:
Buying Power of $1,000,000:
- $1,000,000 in 1996 is equivalent to about $1,956,985.34 in 2023, reflecting a cumulative price increase of 95.70%.
- The average inflation rate from 1996 to 2023 was 2.52% per year.
Inflation by City / Country:
Inflation by City:
- Seattle, Washington, experienced the highest inflation rate (4.38%) between 1996 and 2023.
- Chicago, Illinois, had the lowest inflation rate (2.19%) during the same period.
Inflation by Country:
- In the UK, £1,000,000 in 1996 would be equivalent to £2,314,865.61 in 2023, with a cumulative change of 131.49%.
- In Canada, CA$1,000,000 in 1996 would be equivalent to CA$1,775,387.10 in 2023, showing a cumulative change of 77.54%.
Inflation by Spending Category:
- CPI (Consumer Price Index) is a weighted combination of spending categories.
- Key category changes between 1996 and 2023 include:
- Gas prices increased from $1.13 to $3.50 per gallon.
- Bread prices increased from $0.86 to $1.98 per loaf.
- Electricity prices increased from $0.09 to $0.17 per KwH.
Alternate Measurements:
Personal Consumption Expenditures (PCE) Inflation:
- PCE inflation averaged 2.07% per year between 1996 and 2023, with a total inflation of 73.71%.
- In 1996, PCE inflation was 2.14%.
Core Inflation:
- Core CPI (Consumer Price Index), excluding food and energy, averaged 2.33% per year between 1996 and 2023, with a total inflation of 86.07%.
- In 1996, core inflation was 2.71%.
Comparison to S&P 500 Index:
- The average inflation rate of 2.52% compounded over 27 years results in a price difference of 95.70%.
- If $1,000,000 was invested in the S&P 500 index in 1996, it would be worth approximately $12,084,527.81 in 2023, with a nominal return of 1,108.45% and a real return of $5,175,073.24 after adjusting for inflation.
In conclusion, this comprehensive analysis provides a deep understanding of the value of $1,000,000 from 1996 to 2023, considering various factors such as city-wise and country-wise inflation, spending category changes, and alternative inflation measurements.
