# Value of 2005 Australian Dollars today

\$100 in 2005

\$142.58 in 2020

The inflation rate in Australia between 2005 and today has been 42.58%, which translates into a total increase of \$42.58. This means that 100 dolars in 2005 are equivalent to 142.58 dolars in 2020. In other words, the purchasing power of \$100 in 2005 equals \$142.58 today. The average annual inflation rate has been 2.24%.

## Inflation timeline in Australia (2005-2020)

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 (2005-2020) 42.58%
Total Inflation* 42.58%
Annual inflation avg. (2005-2020) 2.39%
Annual inflation avg.* 2.24%
CPI 2005 75.69
CPI 2020 107.92
CPI today* 107.92
\$1 in 2005 \$1.43 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 15 years between 2005 and 2020 and the average inflation rate has been 2.242%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)15 = \$142.58

#### 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 2005 was 75.69 and the CPI today is 107.92. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.92/75.69
= \$142.58

### Australia inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 2005 \$1.43 dolars today
\$5 dolars in 2005 \$7.13 dolars today
\$10 dolars in 2005 \$14.26 dolars today
\$50 dolars in 2005 \$71.29 dolars today
\$100 dolars in 2005 \$142.58 dolars today
\$500 dolars in 2005 \$712.92 dolars today
\$1,000 dolars in 2005 \$1,425.84 dolars today
\$5,000 dolars in 2005 \$7,129.2 dolars today
\$10,000 dolars in 2005 \$14,258.39 dolars today
\$50,000 dolars in 2005 \$71,291.96 dolars today
\$100,000 dolars in 2005 \$142,583.93 dolars today
\$500,000 dolars in 2005 \$712,919.65 dolars today
\$1,000,000 dolars in 2005 \$1,425,839.3 dolars today

Period Value
2005 100
2006 102.82
2007 106.26
2008 109.33
2009 113.37
2010 115.71
2011 118.9
2012 122.45
2013 125.15
2014 128.59
2015 130.8
2016 133.01
2017 134.97
2018 137.55
2019 140
2020 142.58
Today 142.58