# Value of 1973 Australian Dollars today

\$100 in 1973

\$1,019.61 in 2019

The inflation rate in Australia between 1973 and today has been 919.61%, which translates into a total increase of \$919.61. This means that 100 dolars in 1973 are equivalent to 1,019.61 dolars in 2019. In other words, the purchasing power of \$100 in 1973 equals \$1,019.61 today. The average annual inflation rate has been 5.06%.

## Inflation timeline in Australia (1973-2019)

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 (1973-2019) 918.75%
Total Inflation* 919.61%
Annual inflation avg. (1973-2019) 5.18%
Annual inflation avg.* 5.06%
CPI 1973 10.4
CPI 2019 105.97
CPI today* 106.06
\$1 in 1973 \$10.19 in 2019

* 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 in 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 46 years between 1973 and 2019 and the average inflation rate has been 5.0645%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)46 = \$1,018.75

#### 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 1973 was 10.4 and the CPI today is 106.06. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
105.97/10.4
= \$1,018.75

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1973 \$10.2 dolars today
\$5 dolars in 1973 \$50.98 dolars today
\$10 dolars in 1973 \$101.96 dolars today
\$50 dolars in 1973 \$509.8 dolars today
\$100 dolars in 1973 \$1,019.61 dolars today
\$500 dolars in 1973 \$5,098.04 dolars today
\$1,000 dolars in 1973 \$10,196.08 dolars today
\$5,000 dolars in 1973 \$50,980.41 dolars today
\$10,000 dolars in 1973 \$101,960.82 dolars today
\$50,000 dolars in 1973 \$509,804.08 dolars today
\$100,000 dolars in 1973 \$1,019,608.15 dolars today
\$500,000 dolars in 1973 \$5,098,040.77 dolars today
\$1,000,000 dolars in 1973 \$10,196,081.53 dolars today

Period Value
1973 100
1974 112.5
1975 131.25
1976 150
1977 171.43
1978 187.5
1979 201.79
1980 222.32
1981 242.86
1982 269.64
1983 300
1984 325.89
1985 333.93
1986 361.61
1987 396.43
1988 425
1989 457.14
1990 492.86
1991 526.79
1992 534.82
1993 536.61
1994 546.43
1995 560.71
1996 589.29
1997 598.21
1998 596.43
1999 605.36
2000 616.96
2001 652.68
2002 673.21
2003 692.86
2004 709.82
2005 727.68
2006 748.21
2007 773.21
2008 795.54
2009 825
2010 841.96
2011 865.18
2012 891.07
2013 910.71
2014 935.71
2015 951.79
2016 967.86
2017 982.14
2018 1,000.89
2019 1,018.75
Today 1,019.61