# Value of 1974 Australian Dollars today

\$100 in 1974

\$906.32 in 2019

The inflation rate in Australia between 1974 and today has been 806.32%, which translates into a total increase of \$806.32. This means that 100 dolars in 1974 are equivalent to 906.32 dolars in 2019. In other words, the purchasing power of \$100 in 1974 equals \$906.32 today. The average annual inflation rate has been 4.91%.

## Inflation timeline in Australia (1974-2019)

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 (1974-2019) 805.56%
Total Inflation* 806.32%
Annual inflation avg. (1974-2019) 5.02%
Annual inflation avg.* 4.91%
CPI 1974 11.7
CPI 2019 105.97
CPI today* 106.06
\$1 in 1974 \$9.06 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 45 years between 1974 and 2019 and the average inflation rate has been 4.9084%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)45 = \$905.56

#### 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 1974 was 11.7 and the CPI today is 106.06. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
105.97/11.7
= \$905.56

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1974 \$9.06 dolars today
\$5 dolars in 1974 \$45.32 dolars today
\$10 dolars in 1974 \$90.63 dolars today
\$50 dolars in 1974 \$453.16 dolars today
\$100 dolars in 1974 \$906.32 dolars today
\$500 dolars in 1974 \$4,531.59 dolars today
\$1,000 dolars in 1974 \$9,063.18 dolars today
\$5,000 dolars in 1974 \$45,315.91 dolars today
\$10,000 dolars in 1974 \$90,631.83 dolars today
\$50,000 dolars in 1974 \$453,159.13 dolars today
\$100,000 dolars in 1974 \$906,318.26 dolars today
\$500,000 dolars in 1974 \$4,531,591.31 dolars today
\$1,000,000 dolars in 1974 \$9,063,182.62 dolars today

Period Value
1974 100
1975 116.67
1976 133.33
1977 152.38
1978 166.67
1979 179.37
1980 197.62
1981 215.87
1982 239.68
1983 266.67
1984 289.68
1985 296.83
1986 321.43
1987 352.38
1988 377.78
1989 406.35
1990 438.1
1991 468.25
1992 475.4
1993 476.98
1994 485.71
1995 498.41
1996 523.81
1997 531.75
1998 530.16
1999 538.1
2000 548.41
2001 580.16
2002 598.41
2003 615.87
2004 630.95
2005 646.83
2006 665.08
2007 687.3
2008 707.14
2009 733.33
2010 748.41
2011 769.05
2012 792.06
2013 809.52
2014 831.75
2015 846.03
2016 860.32
2017 873.02
2018 889.68
2019 905.56
Today 906.32