# Value of 1971 Australian Dollars today

\$100 in 1971

\$1,172.64 in 2021

The inflation rate in Australia between 1971 and today has been 1,072.64%, which translates into a total increase of \$1,072.64. This means that 100 dolars in 1971 are equivalent to 1,172.64 dolars in 2021. In other words, the purchasing power of \$100 in 1971 equals \$1,172.64 today. The average annual inflation rate has been 4.95%.

## Inflation timeline in Australia (1971-2021)

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 (1971-2021) 1,072%
Total Inflation* 1,072.64%
Annual inflation avg. (1971-2021) 5.05%
Annual inflation avg.* 4.95%
CPI 1971 9.29
CPI 2021 108.85
CPI today* 108.91
\$1 in 1971 \$11.72 in 2021

* 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 1971 and 2021 and the average inflation rate has been 4.9456%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)50 = \$1,172

#### 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 1971 was 9.29 and the CPI today is 108.91. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.85/9.29
= \$1,172

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1971 \$11.73 dolars today
\$5 dolars in 1971 \$58.63 dolars today
\$10 dolars in 1971 \$117.26 dolars today
\$50 dolars in 1971 \$586.32 dolars today
\$100 dolars in 1971 \$1,172.64 dolars today
\$500 dolars in 1971 \$5,863.22 dolars today
\$1,000 dolars in 1971 \$11,726.45 dolars today
\$5,000 dolars in 1971 \$58,632.24 dolars today
\$10,000 dolars in 1971 \$117,264.48 dolars today
\$50,000 dolars in 1971 \$586,322.4 dolars today
\$100,000 dolars in 1971 \$1,172,644.81 dolars today
\$500,000 dolars in 1971 \$5,863,224.04 dolars today
\$1,000,000 dolars in 1971 \$11,726,448.08 dolars today

Period Value
1971 100
1972 107
1973 112
1974 126
1975 147
1976 168
1977 192
1978 210
1979 226
1980 249
1981 272
1982 302
1983 336
1984 365
1985 374
1986 405
1987 444
1988 476
1989 512
1990 552
1991 590
1992 599
1993 601
1994 612
1995 628
1996 660
1997 670
1998 668
1999 678
2000 691
2001 731
2002 754
2003 776
2004 795
2005 815
2006 838
2007 866
2008 891
2009 924
2010 943
2011 969
2012 998
2013 1,020
2014 1,048
2015 1,066
2016 1,084
2017 1,100
2018 1,121
2019 1,141
2020 1,162
2021 1,172
Today 1,172.64