Current Constant Dollars Calculator

Formula

The formula to calculate the Current Constant Dollars (C) is:

\[ C = P \times \left( \frac{I_c}{I_p} \right) \]

Where:

Current Constant Dollars (C): The value of money adjusted for inflation to reflect current purchasing power.
Amount in Past Dollars (P): The monetary value from a past time period.
Current Price Index (I_c): The price index at the current time.
Past Price Index (I_p): The price index at the past time.

Let's say the amount in past dollars (P) is $1,000, the current price index (I_c) is 120, and the past price index (I_p) is 100. Using the formula:

\[ C = 1000 \times \left( \frac{120}{100} \right) \]

We get:

\[ C = 1000 \times 1.2 = 1200 \text{ dollars} \]

So, the current constant dollars are $1,200.