# Value of 1980 Australian Dollars today

\$100 in 1980

\$458.53 in 2019

The inflation rate in Australia between 1980 and today has been 358.53%, which translates into a total increase of \$358.53. This means that 100 dolars in 1980 are equivalent to 458.53 dolars in 2019. In other words, the purchasing power of \$100 in 1980 equals \$458.53 today. The average annual inflation rate has been 3.88%.

## Inflation timeline in Australia (1980-2019)

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 (1980-2019) 358.23%
Total Inflation* 358.53%
Annual inflation avg. (1980-2019) 3.98%
Annual inflation avg.* 3.88%
CPI 1980 23.13
CPI 2019 105.97
CPI today* 106.04
\$1 in 1980 \$4.58 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 39 years between 1980 and 2019 and the average inflation rate has been 3.8805%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)39 = \$458.23

#### 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 1980 was 23.13 and the CPI today is 106.04. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
105.97/23.13
= \$458.23

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1980 \$4.59 dolars today
\$5 dolars in 1980 \$22.93 dolars today
\$10 dolars in 1980 \$45.85 dolars today
\$50 dolars in 1980 \$229.26 dolars today
\$100 dolars in 1980 \$458.53 dolars today
\$500 dolars in 1980 \$2,292.64 dolars today
\$1,000 dolars in 1980 \$4,585.28 dolars today
\$5,000 dolars in 1980 \$22,926.41 dolars today
\$10,000 dolars in 1980 \$45,852.81 dolars today
\$50,000 dolars in 1980 \$229,264.06 dolars today
\$100,000 dolars in 1980 \$458,528.12 dolars today
\$500,000 dolars in 1980 \$2,292,640.59 dolars today
\$1,000,000 dolars in 1980 \$4,585,281.19 dolars today

Period Value
1980 100
1981 109.24
1982 121.29
1983 134.94
1984 146.59
1985 150.2
1986 162.65
1987 178.31
1988 191.16
1989 205.62
1990 221.69
1991 236.95
1992 240.56
1993 241.37
1994 245.78
1995 252.21
1996 265.06
1997 269.08
1998 268.27
1999 272.29
2000 277.51
2001 293.57
2002 302.81
2003 311.65
2004 319.28
2005 327.31
2006 336.55
2007 347.79
2008 357.83
2009 371.08
2010 378.71
2011 389.16
2012 400.8
2013 409.64
2014 420.88
2015 428.11
2016 435.34
2017 441.77
2018 450.2
2019 458.23
Today 458.53