# Value of 1985 Australian Dollars today

\$100 in 1985

\$305.34 in 2019

The inflation rate in Australia between 1985 and today has been 205.34%, which translates into a total increase of \$205.34. This means that 100 dolars in 1985 are equivalent to 305.34 dolars in 2019. In other words, the purchasing power of \$100 in 1985 equals \$305.34 today. The average annual inflation rate has been 3.24%.

## Inflation timeline in Australia (1985-2019)

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 (1985-2019) 205.08%
Total Inflation* 205.34%
Annual inflation avg. (1985-2019) 3.34%
Annual inflation avg.* 3.24%
CPI 1985 34.73
CPI 2019 105.97
CPI today* 106.06
\$1 in 1985 \$3.05 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 34 years between 1985 and 2019 and the average inflation rate has been 3.2407%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.03)34 = \$305.08

#### 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 1985 was 34.73 and the CPI today is 106.06. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
105.97/34.73
= \$305.08

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1985 \$3.05 dolars today
\$5 dolars in 1985 \$15.27 dolars today
\$10 dolars in 1985 \$30.53 dolars today
\$50 dolars in 1985 \$152.67 dolars today
\$100 dolars in 1985 \$305.34 dolars today
\$500 dolars in 1985 \$1,526.69 dolars today
\$1,000 dolars in 1985 \$3,053.37 dolars today
\$5,000 dolars in 1985 \$15,266.86 dolars today
\$10,000 dolars in 1985 \$30,533.72 dolars today
\$50,000 dolars in 1985 \$152,668.59 dolars today
\$100,000 dolars in 1985 \$305,337.18 dolars today
\$500,000 dolars in 1985 \$1,526,685.92 dolars today
\$1,000,000 dolars in 1985 \$3,053,371.84 dolars today

Period Value
1985 100
1986 108.29
1987 118.72
1988 127.27
1989 136.9
1990 147.59
1991 157.75
1992 160.16
1993 160.7
1994 163.64
1995 167.91
1996 176.47
1997 179.14
1998 178.61
1999 181.28
2000 184.76
2001 195.45
2002 201.6
2003 207.49
2004 212.57
2005 217.91
2006 224.06
2007 231.55
2008 238.24
2009 247.06
2010 252.14
2011 259.09
2012 266.84
2013 272.73
2014 280.21
2015 285.03
2016 289.84
2017 294.12
2018 299.73
2019 305.08
Today 305.34