What Was $100 Worth in 1920 and Its Value Today?

The value of money changes significantly over time, meaning a set amount of dollars today does not command the same purchasing power it did in the past. Understanding how much a specific sum, like $100, was worth in a bygone era, such as 1920, and comparing it to its modern equivalent reveals the profound impact of these economic shifts.

The Concept of Purchasing Power

Purchasing power refers to the quantity of goods and services that a unit of currency can buy. When prices rise, the purchasing power of money falls, as each dollar buys fewer items. The primary force behind changes in purchasing power is inflation, which is the rate at which the general level of prices for goods and services increases, causing currency to lose value over time.

To accurately measure inflation and its effect on purchasing power, economists and government agencies utilize tools like the Consumer Price Index (CPI). The CPI tracks 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. By comparing the CPI at different points in time, it becomes possible to quantify how much more or less a dollar can purchase.

Calculating Today’s Equivalent Value

To determine what $100 from 1920 would be worth today, the Consumer Price Index (CPI) serves as the standard measure for adjusting for inflation. Using historical CPI data, specifically an average CPI of 20.0 for 1920 and a CPI of 322.561 for June 2025, a precise calculation can be made.

Applying this calculation, $100 from 1920 would require approximately $1,612.81 in June 2025 to have the same purchasing power. Other reputable inflation calculators confirm similar figures, with estimates ranging from $1,591.25 to $1,670 for $100 from 1920 in 2025, accounting for slight variations in CPI data points. While these figures provide a strong estimate, remember that calculations are based on average price changes and may not perfectly reflect the cost of every single item due to specific market fluctuations or regional differences. Online inflation calculators, often provided by government agencies like the Bureau of Labor Statistics, allow individuals to perform these conversions by inputting a starting amount, a start year, and an end year.

What $100 Purchased in 1920

In 1920, $100 represented a significantly larger share of an individual’s earnings and could acquire a substantial amount of goods and services. For context, the average annual household income in the United States around that time was approximately $3,269.40. This means $100 would have been equivalent to roughly one-third of a typical monthly income for many families.

Everyday necessities and luxuries were remarkably different. For instance, $100 could purchase:
A dozen eggs for about 47 cents.
A pound of round steak for 40 cents.
A half-gallon of milk for around 33 cents.
A pound of coffee for approximately 50 cents.
A pound of bread for about 12 cents.

Housing expenses were much lower; monthly rent for an apartment in a major city like New York averaged around $60. A new house could be bought for approximately $6,296. A new Ford Model T, which revolutionized personal mobility, cost around $300-$310, making $100 a notable down payment or a significant portion of its price.

Clothing was also more accessible.
A standard men’s dress shirt ranged from $1.50 to $3.
Trousers were typically $3 to $7.
A high-quality suit could be bought for $20 to $50.
A simple everyday dress for women cost between $5 and $10.
For entertainment, a movie ticket typically cost around 25 cents.