Value of 1981 Australian Dollars today

$100 in 1981

$417.28 in 2018

The inflation rate in Australia between 1981 and today has been 317.28%, which translates into a total increase of $317.28. This means that 100 dolars in 1981 are equivalent to 417.28 dolars in 2018. In other words, the purchasing power of $100 in 1981 equals $417.28 today. The average annual inflation rate has been 3.83%.

Inflation timeline in Australia (1981-2018)

The following chart ilustrates the equivalence of $100 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchashing 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 (1981-2018) 312.13%
Total Inflation* 317.28%
Annual inflation avg. (1981-2018) 3.9%
Annual inflation avg.* 3.83%
CPI 1981 25.26
CPI 2018 104.11
CPI today* 105.41
$1 in 1981 $4.12 in 2018

* 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 37 years between 1981 and 2018 and the average inflation rate has been 3.831%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = $100 * (1 + 0.04)37 = $412.13

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 1981 was 25.26 and the CPI today is 105.41. Therefore,

Final value = Initial value *
CPI final/CPI initial
= $100 *
104.11/25.26
= $412.13

Australia inflation - Conversion table

Initial Value Equivalent value
$1 dollar in 1981 $4.17 dolars today
$5 dolars in 1981 $20.86 dolars today
$10 dolars in 1981 $41.73 dolars today
$50 dolars in 1981 $208.64 dolars today
$100 dolars in 1981 $417.28 dolars today
$500 dolars in 1981 $2,086.41 dolars today
$1,000 dolars in 1981 $4,172.82 dolars today
$5,000 dolars in 1981 $20,864.08 dolars today
$10,000 dolars in 1981 $41,728.15 dolars today
$50,000 dolars in 1981 $208,640.76 dolars today
$100,000 dolars in 1981 $417,281.52 dolars today
$500,000 dolars in 1981 $2,086,407.62 dolars today
$1,000,000 dolars in 1981 $4,172,815.24 dolars today

Value of Dollar in time (by year)

Period Value
1981 100
1982 111.03
1983 123.53
1984 134.19
1985 137.5
1986 148.9
1987 163.24
1988 175
1989 188.24
1990 202.94
1991 216.91
1992 220.22
1993 220.96
1994 225
1995 230.88
1996 242.65
1997 246.32
1998 245.59
1999 249.26
2000 254.04
2001 268.75
2002 277.21
2003 285.29
2004 292.28
2005 299.63
2006 308.09
2007 318.38
2008 327.57
2009 339.71
2010 346.69
2011 356.25
2012 366.91
2013 375
2014 385.29
2015 391.91
2016 398.53
2017 404.41
2018 412.13
Today 417.28