How Much Was $100 in 1920 Worth Today?

The purchasing power of money changes over time, meaning a fixed amount of currency can acquire varying quantities of goods and services across different periods. A sum like $100 in 1920, for instance, held a significantly different value than $100 does today. This article explores the economic forces behind this shift and calculates what $100 from the early 20th century would represent in contemporary terms.

Understanding Inflation and Purchasing Power

The primary factor influencing the changing value of money is inflation, which refers to the general increase in prices for goods and services over time. As inflation occurs, each unit of currency buys fewer goods and services, effectively reducing its purchasing power. Purchasing power is the amount of items or services that can be acquired with a specific amount of money. For example, a single dollar today typically buys less than it did a decade ago.

How to Calculate Historical Value

Financial journalists and economists commonly use the Consumer Price Index (CPI) to measure changes in the purchasing power of money over time. The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. This market basket includes a wide range of items, from food and housing to transportation and medical care, reflecting typical consumer spending patterns. Government agencies, such as the Bureau of Labor Statistics (BLS), track and publish CPI data, providing the basis for converting historical money values to current ones.

The Purchasing Power of $100 in 1920

In 1920, $100 represented a substantial amount of money, reflecting a different economic landscape and cost of living. The average household income in the United States that year was approximately $3,269.40 annually, which translates to roughly $65 per week. This meant that $100 constituted more than a week and a half’s earnings for an average household.

For context, basic necessities and common goods were priced far lower than they are today:

• A dozen eggs cost around 47 cents.
• A half-gallon of milk cost about 33 cents.
• A pound of round steak cost 40 cents.
• A loaf of bread cost around 12 cents.
• A gallon of gasoline averaged between 30 and 33 cents.
• A new Ford Model T automobile was priced around $395.
• A movie ticket cost approximately 15 to 25 cents.
• Renting an apartment in a major city like New York could be around $60 per month.

Today’s Equivalent Value

To determine the contemporary equivalent of $100 from 1920, one must account for over a century of inflation. Using the Consumer Price Index, $100 in 1920 would possess the same purchasing power as approximately $1,615 in 2025. This calculation illustrates the significant erosion of monetary value due to inflation over a prolonged period.

The figure demonstrates that today’s prices are about 16.15 times higher than average prices were in 1920. While $100 was a considerable sum that could cover a significant portion of a household’s monthly expenses in 1920, its modern equivalent would barely cover a fraction of similar costs today. For instance, the $60 monthly rent for a New York City apartment in 1920 would equate to approximately $905.51 in 2023 dollars, still a modest sum for a modern apartment rental. The cost of goods like a dozen eggs, which was 47 cents in 1920, would be comparable to over $7 in today’s money.