# Value of 2000 Australian Dollars today

\$9 in 2000

\$15.14 in 2020

The inflation rate in Australia between 2000 and today has been 68.19%, which translates into a total increase of \$6.14. This means that 9 dolars in 2000 are equivalent to 15.14 dolars in 2020. In other words, the purchasing power of \$9 in 2000 equals \$15.14 today. The average annual inflation rate has been 2.51%.

## Inflation timeline in Australia (2000-2020)

The following chart depicts the equivalence of \$9 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 (2000-2020) 68.16%
Total Inflation* 68.19%
Annual inflation avg. (2000-2020) 2.63%
Annual inflation avg.* 2.51%
CPI 2000 64.17
CPI 2020 107.92
CPI today* 107.93
\$1 in 2000 \$1.68 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 \$9 worth today. There are 20 years between 2000 and 2020 and the average inflation rate has been 2.5067%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$9 * (1 + 0.03)20 = \$15.13

#### 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 2000 was 64.17 and the CPI today is 107.93. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$9 *
107.92/64.17
= \$15.13

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 2000 \$1.68 dolars today
\$5 dolars in 2000 \$8.41 dolars today
\$10 dolars in 2000 \$16.82 dolars today
\$50 dolars in 2000 \$84.09 dolars today
\$100 dolars in 2000 \$168.19 dolars today
\$500 dolars in 2000 \$840.94 dolars today
\$1,000 dolars in 2000 \$1,681.88 dolars today
\$5,000 dolars in 2000 \$8,409.39 dolars today
\$10,000 dolars in 2000 \$16,818.78 dolars today
\$50,000 dolars in 2000 \$84,093.9 dolars today
\$100,000 dolars in 2000 \$168,187.81 dolars today
\$500,000 dolars in 2000 \$840,939.03 dolars today
\$1,000,000 dolars in 2000 \$1,681,878.06 dolars today

Period Value
2000 9
2001 9.52
2002 9.82
2003 10.11
2004 10.35
2005 10.62
2006 10.91
2007 11.28
2008 11.6
2009 12.03
2010 12.28
2011 12.62
2012 13
2013 13.29
2014 13.65
2015 13.88
2016 14.12
2017 14.33
2018 14.6
2019 14.86
2020 15.13
Today 15.14