How much would $118 million from 1979 be worth today?

Examining the costs of gasoline, food, and housing from 1979 to today shows substantial increases driven by inflation and other economic factors. In 1979, the average price of gasoline in the United States was around $0.86 per gallon, which, when adjusted for inflation, is about $3.74 per gallon in today’s dollars. By November 2024, however, the average price has reached approximately $3.89 per gallon, reflecting a significant increase over the past 45 years.

Food costs have also risen notably. In 1979, a loaf of bread cost about $0.40, which is equivalent to $1.74 today when adjusted for inflation. A dozen eggs, priced around $0.85 in 1979, would be about $3.70 today, while a gallon of milk, originally around $1.62, translates to about $7.05 in today’s dollars. By November 2024, the current prices are approximately $1.97 for a loaf of bread, $2.70 for a dozen eggs, and $3.86 for a gallon of milk, illustrating steady upward pressure on basic food items over time.

Housing costs show the most dramatic increase. In 1979, the median price of a new home was approximately $58,100, equivalent to around $252,000 today when adjusted for inflation. In comparison, as of September 2024, the average house price in Canada is approximately $718,200 CAD, underscoring the significant appreciation in real estate values over the past few decades.

Together, these comparisons highlight the considerable effect of inflation on purchasing power over time, leading to higher nominal prices across everyday essentials and major assets alike. The rising costs of goods and housing illustrate how economic shifts and inflation have profoundly impacted the cost of living, especially when viewed over several decades.

In 1979, the United States had approximately 574,000 millionaires. By 2024, this number has grown significantly, with estimates indicating around 21.95 million millionaires in the U.S. This substantial increase reflects economic growth, inflation, and the accumulation of wealth over the past several decades.

$118 million from 1979 would be worth approximately $554.88 million today, assuming an average annual inflation rate of 3.5%.

With $554.88 million, you could make notable purchases and investments across a range of high-value items. For instance, in real estate, you could buy a luxury Manhattan penthouse for around $50 million, a Beverly Hills estate for $40 million, and perhaps a waterfront property in Miami for another $30 million, totaling about $120 million for a portfolio of prime properties in major U.S. cities. You might also buy an island, such as the 100-acre Blue Island in the Bahamas, listed for around $75 million.

In the world of luxury transportation, you could acquire a custom superyacht for approximately $200 million, equipped with state-of-the-art technology, a helipad, and amenities like a pool and movie theater. Alternatively, a Gulfstream G650 private jet costs around $65 million, so you could buy one or even two for added flexibility and convenience. For art and collectibles, you could acquire a few pieces by renowned artists, such as a Picasso or a Warhol, with each piece often valued between $10 million and $50 million.

For business or investment, $554.88 million could secure a substantial share in a mid-sized company or several smaller ventures. For example, buying a franchise in a brand like McDonald’s requires an initial investment of around $1-2 million, so you could open multiple franchises in high-traffic locations. You might also buy a professional sports team or an equity stake in one, as smaller teams often range between $250 million and $500 million.

On the philanthropic side, with around $10 million, you could establish an endowed scholarship fund at a major university, supporting students for decades. A major donation of $100 million to a hospital could help build a new facility or fund specialized research, creating a lasting legacy in healthcare. Balancing luxury, investment, and philanthropy, $554.88 million provides the capacity to acquire tangible assets, secure financial growth, and make a social impact.

If you were to invest $554.88 million in a high-yield account earning around 5% annually, your investment would generate approximately $27.744 million in interest every year. With an annual spending budget of just $100,000, you’d be using a tiny fraction of the interest earned.

To put it in perspective, imagine that each year your investment account “grows” by $27.744 million thanks to the interest, but you only withdraw $100,000 to cover your living expenses. This leaves you with about $27.644 million in new growth each year—far more than you’re spending. Instead of depleting your funds, you’d actually see your balance increase annually by tens of millions, as the interest compounds year after year.

In this setup, your $554.88 million would effectively last forever, growing continuously as long as your annual spending remains so far below the interest earned.

If you were to spend $100,000 per year without investing the $554.88 million, the principal would last approximately 5,548 years before running out.