# Value of 1978 Australian Dollars today

\$100 in 1978

\$554.1 in 2020

The inflation rate in Australia between 1978 and today has been 454.1%, which translates into a total increase of \$454.1. This means that 100 dolars in 1978 are equivalent to 554.1 dolars in 2020. In other words, the purchasing power of \$100 in 1978 equals \$554.1 today. The average annual inflation rate has been 4.06%.

## Inflation timeline in Australia (1978-2020)

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 (1978-2020) 453.33%
Total Inflation* 454.1%
Annual inflation avg. (1978-2020) 4.16%
Annual inflation avg.* 4.06%
CPI 1978 19.5
CPI 2020 107.92
CPI today* 108.07
\$1 in 1978 \$5.53 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 42 years between 1978 and 2020 and the average inflation rate has been 4.0621%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)42 = \$553.33

#### 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 1978 was 19.5 and the CPI today is 108.07. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.92/19.5
= \$553.33

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1978 \$5.54 dolars today
\$5 dolars in 1978 \$27.7 dolars today
\$10 dolars in 1978 \$55.41 dolars today
\$50 dolars in 1978 \$277.05 dolars today
\$100 dolars in 1978 \$554.1 dolars today
\$500 dolars in 1978 \$2,770.49 dolars today
\$1,000 dolars in 1978 \$5,540.97 dolars today
\$5,000 dolars in 1978 \$27,704.85 dolars today
\$10,000 dolars in 1978 \$55,409.7 dolars today
\$50,000 dolars in 1978 \$277,048.52 dolars today
\$100,000 dolars in 1978 \$554,097.03 dolars today
\$500,000 dolars in 1978 \$2,770,485.16 dolars today
\$1,000,000 dolars in 1978 \$5,540,970.33 dolars today

Period Value
1978 100
1979 107.62
1980 118.57
1981 129.52
1982 143.81
1983 160
1984 173.81
1985 178.1
1986 192.86
1987 211.43
1988 226.67
1989 243.81
1990 262.86
1991 280.95
1992 285.24
1993 286.19
1994 291.43
1995 299.05
1996 314.29
1997 319.05
1998 318.1
1999 322.86
2000 329.05
2001 348.1
2002 359.05
2003 369.52
2004 378.57
2005 388.1
2006 399.05
2007 412.38
2008 424.29
2009 440
2010 449.05
2011 461.43
2012 475.24
2013 485.71
2014 499.05
2015 507.62
2016 516.19
2017 523.81
2018 533.81
2019 543.33
2020 553.33
Today 554.1