# Value of 1970 Australian Dollars today

\$100 in 1970

\$1,223.22 in 2020

The inflation rate in Australia between 1970 and today has been 1,123.22%, which translates into a total increase of \$1,123.22. This means that 100 dolars in 1970 are equivalent to 1,223.22 dolars in 2020. In other words, the purchasing power of \$100 in 1970 equals \$1,223.22 today. The average annual inflation rate has been 5.03%.

## Inflation timeline in Australia (1970-2020)

The following chart depicts the equivalence of \$100 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchasing power, which means that for each year the same goods or services could be bought with the indicated amount of money.

All calculations are performed in the local currency (AUD) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability. Inflation data is provided by governments and international institutions on a monthly basis. Today's values were obtained by estimating figures from recent trends.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1970-2020) 1,123.16%
Total Inflation* 1,123.22%
Annual inflation avg. (1970-2020) 5.14%
Annual inflation avg.* 5.03%
CPI 1970 8.82
CPI 2020 107.92
CPI today* 107.92
\$1 in 1970 \$12.23 in 2020

* Values extrapolated from the last official data to obtain today's values.

## How to calculate today's value of money after inflation?

There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the compound interest formula or the Consumer Price Index (CPI) formula.

#### Using the compound interest formula

Given that money changes with time as a result of an inflation rate that acts as a compound interest, the following formula can be used: FV = PV (1 + i)n, where:

• FV: Future Value
• PV: Present Value
• i: Interest rate (inflation)
• n: Number of times the interest is compounded (i.e. # of years)

In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much are \$100 worth today. There are 50 years between 1970 and 2020 and the average inflation rate has been 5.0325%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)50 = \$1,223.16

#### Using the CPI formula

When the CPI for both start and end years is known, the following formula can be used:

Final value = Initial value *
CPI final/CPI initial

In this case, the CPI in 1970 was 8.82 and the CPI today is 107.92. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.92/8.82
= \$1,223.16

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1970 \$12.23 dolars today
\$5 dolars in 1970 \$61.16 dolars today
\$10 dolars in 1970 \$122.32 dolars today
\$50 dolars in 1970 \$611.61 dolars today
\$100 dolars in 1970 \$1,223.22 dolars today
\$500 dolars in 1970 \$6,116.1 dolars today
\$1,000 dolars in 1970 \$12,232.2 dolars today
\$5,000 dolars in 1970 \$61,161 dolars today
\$10,000 dolars in 1970 \$122,322 dolars today
\$50,000 dolars in 1970 \$611,610 dolars today
\$100,000 dolars in 1970 \$1,223,220 dolars today
\$500,000 dolars in 1970 \$6,116,100.02 dolars today
\$1,000,000 dolars in 1970 \$12,232,200.04 dolars today

Period Value
1970 100
1971 105.26
1972 112.63
1973 117.89
1974 132.63
1975 154.74
1976 176.84
1977 202.11
1978 221.05
1979 237.89
1980 262.11
1981 286.32
1982 317.89
1983 353.68
1984 384.21
1985 393.68
1986 426.32
1987 467.37
1988 501.05
1989 538.95
1990 581.05
1991 621.05
1992 630.53
1993 632.63
1994 644.21
1995 661.05
1996 694.74
1997 705.26
1998 703.16
1999 713.68
2000 727.37
2001 769.47
2002 793.68
2003 816.84
2004 836.84
2005 857.89
2006 882.11
2007 911.58
2008 937.89
2009 972.63
2010 992.63
2011 1,020
2012 1,050.53
2013 1,073.68
2014 1,103.16
2015 1,122.11
2016 1,141.05
2017 1,157.9
2018 1,180
2019 1,201.05
2020 1,223.16
Today 1,223.22