# Value of 1987 Australian Dollars today

\$100 in 1987

\$264.07 in 2021

The inflation rate in Australia between 1987 and today has been 164.07%, which translates into a total increase of \$164.07. This means that 100 dolars in 1987 are equivalent to 264.07 dolars in 2021. In other words, the purchasing power of \$100 in 1987 equals \$264.07 today. The average annual inflation rate has been 2.81%.

## Inflation timeline in Australia (1987-2021)

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 (1987-2021) 163.96%
Total Inflation* 164.07%
Annual inflation avg. (1987-2021) 2.9%
Annual inflation avg.* 2.81%
CPI 1987 41.24
CPI 2021 108.85
CPI today* 108.89
\$1 in 1987 \$2.64 in 2021

* 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 1987 and 2021 and the average inflation rate has been 2.8133%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.03)34 = \$263.96

#### 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 1987 was 41.24 and the CPI today is 108.89. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.85/41.24
= \$263.96

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1987 \$2.64 dolars today
\$5 dolars in 1987 \$13.2 dolars today
\$10 dolars in 1987 \$26.41 dolars today
\$50 dolars in 1987 \$132.04 dolars today
\$100 dolars in 1987 \$264.07 dolars today
\$500 dolars in 1987 \$1,320.36 dolars today
\$1,000 dolars in 1987 \$2,640.71 dolars today
\$5,000 dolars in 1987 \$13,203.57 dolars today
\$10,000 dolars in 1987 \$26,407.13 dolars today
\$50,000 dolars in 1987 \$132,035.66 dolars today
\$100,000 dolars in 1987 \$264,071.32 dolars today
\$500,000 dolars in 1987 \$1,320,356.61 dolars today
\$1,000,000 dolars in 1987 \$2,640,713.21 dolars today

Period Value
1987 100
1988 107.21
1989 115.32
1990 124.32
1991 132.88
1992 134.91
1993 135.36
1994 137.84
1995 141.44
1996 148.65
1997 150.9
1998 150.45
1999 152.7
2000 155.63
2001 164.64
2002 169.82
2003 174.77
2004 179.05
2005 183.56
2006 188.74
2007 195.05
2008 200.68
2009 208.11
2010 212.39
2011 218.24
2012 224.77
2013 229.73
2014 236.04
2015 240.09
2016 244.14
2017 247.75
2018 252.48
2019 256.98
2020 261.71
2021 263.96
Today 264.07