# Value of 1972 Australian Dollars today

\$100 in 1972

\$1,095.9 in 2021

The inflation rate in Australia between 1972 and today has been 995.9%, which translates into a total increase of \$995.9. This means that 100 dolars in 1972 are equivalent to 1,095.9 dolars in 2021. In other words, the purchasing power of \$100 in 1972 equals \$1,095.9 today. The average annual inflation rate has been 4.9%.

## Inflation timeline in Australia (1972-2021)

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 (1972-2021) 995.33%
Total Inflation* 995.9%
Annual inflation avg. (1972-2021) 5.01%
Annual inflation avg.* 4.9%
CPI 1972 9.94
CPI 2021 108.85
CPI today* 108.9
\$1 in 1972 \$10.95 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 49 years between 1972 and 2021 and the average inflation rate has been 4.9048%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)49 = \$1,095.33

#### 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 1972 was 9.94 and the CPI today is 108.9. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.85/9.94
= \$1,095.33

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1972 \$10.96 dolars today
\$5 dolars in 1972 \$54.8 dolars today
\$10 dolars in 1972 \$109.59 dolars today
\$50 dolars in 1972 \$547.95 dolars today
\$100 dolars in 1972 \$1,095.9 dolars today
\$500 dolars in 1972 \$5,479.52 dolars today
\$1,000 dolars in 1972 \$10,959.04 dolars today
\$5,000 dolars in 1972 \$54,795.18 dolars today
\$10,000 dolars in 1972 \$109,590.36 dolars today
\$50,000 dolars in 1972 \$547,951.8 dolars today
\$100,000 dolars in 1972 \$1,095,903.6 dolars today
\$500,000 dolars in 1972 \$5,479,517.98 dolars today
\$1,000,000 dolars in 1972 \$10,959,035.95 dolars today

Period Value
1972 100
1973 104.67
1974 117.76
1975 137.38
1976 157.01
1977 179.44
1978 196.26
1979 211.21
1980 232.71
1981 254.21
1982 282.24
1983 314.02
1984 341.12
1985 349.53
1986 378.5
1987 414.95
1988 444.86
1989 478.5
1990 515.89
1991 551.4
1992 559.81
1993 561.68
1994 571.96
1995 586.92
1996 616.82
1997 626.17
1998 624.3
1999 633.64
2000 645.79
2001 683.18
2002 704.67
2003 725.23
2004 742.99
2005 761.68
2006 783.18
2007 809.35
2008 832.71
2009 863.55
2010 881.31
2011 905.61
2012 932.71
2013 953.27
2014 979.44
2015 996.26
2016 1,013.08
2017 1,028.04
2018 1,047.66
2019 1,066.35
2020 1,085.98
2021 1,095.33
Today 1,095.9