Have you ever wondered how the** **real value of a certain amount of money changes or evolves over the years? This specially involves its value with respect to other currencies. If yes, then this buying power calculator will surely give you some practical insight.

In simple words, the buying power calculator (or purchasing power calculator) shows you how much your dollar is worth in different years and in front of other currencies.

The US Dollar from different years does not represent an accurate comparison of its real value. More practically, it means that you cannot buy the same amount of goods and services at the same price or with the same amount of dollars down the timeline.

For the purpose of comparing the value of dollars in particular years, the older figure should be adjusted by an updated price index.

In order to Calculate the change in the buying power, one must multiply the ratio of the base year’s CPI (181.3) to target year CPI (219.235) by 100.

For instance:

(181.3/219.235) x 100 = 82.69%

This implies that the purchasing power of the dollar declined by 17.31% from the year 2000 to the year 2009.