# Value of 1986 Australian Dollars today

\$100 in 1986

\$287.31 in 2020

The inflation rate in Australia between 1986 and today has been 187.31%, which translates into a total increase of \$187.31. This means that 100 dolars in 1986 are equivalent to 287.31 dolars in 2020. In other words, the purchasing power of \$100 in 1986 equals \$287.31 today. The average annual inflation rate has been 3.06%.

## Inflation timeline in Australia (1986-2020)

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 (1986-2020) 186.91%
Total Inflation* 187.31%
Annual inflation avg. (1986-2020) 3.15%
Annual inflation avg.* 3.06%
CPI 1986 37.61
CPI 2020 107.92
CPI today* 108.07
\$1 in 1986 \$2.87 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 34 years between 1986 and 2020 and the average inflation rate has been 3.0613%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.03)34 = \$286.91

#### 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 1986 was 37.61 and the CPI today is 108.07. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.92/37.61
= \$286.91

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1986 \$2.87 dolars today
\$5 dolars in 1986 \$14.37 dolars today
\$10 dolars in 1986 \$28.73 dolars today
\$50 dolars in 1986 \$143.65 dolars today
\$100 dolars in 1986 \$287.31 dolars today
\$500 dolars in 1986 \$1,436.55 dolars today
\$1,000 dolars in 1986 \$2,873.09 dolars today
\$5,000 dolars in 1986 \$14,365.47 dolars today
\$10,000 dolars in 1986 \$28,730.95 dolars today
\$50,000 dolars in 1986 \$143,654.75 dolars today
\$100,000 dolars in 1986 \$287,309.49 dolars today
\$500,000 dolars in 1986 \$1,436,547.45 dolars today
\$1,000,000 dolars in 1986 \$2,873,094.91 dolars today

Period Value
1986 100
1987 109.63
1988 117.53
1989 126.42
1990 136.3
1991 145.68
1992 147.9
1993 148.4
1994 151.11
1995 155.06
1996 162.96
1997 165.43
1998 164.94
1999 167.41
2000 170.62
2001 180.49
2002 186.17
2003 191.6
2004 196.3
2005 201.23
2006 206.91
2007 213.83
2008 220
2009 228.15
2010 232.84
2011 239.26
2012 246.42
2013 251.85
2014 258.77
2015 263.21
2016 267.65
2017 271.6
2018 276.79
2019 281.73
2020 286.91
Today 287.31