# Value of 1996 Brazilian Reals today

R\$100 in 1996

R\$448.2 in 2021

The inflation rate in Brazil between 1996 and today has been 348.2%, which translates into a total increase of R\$348.2. This means that 100 reals in 1996 are equivalent to 448.2 reals in 2021. In other words, the purchasing power of R\$100 in 1996 equals R\$448.2 today. The average annual inflation rate has been 5.94%.

## Inflation timeline in Brazil (1996-2021)

The following chart depicts the equivalence of R\$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 (BRL) 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 (1996-2021) 346.91%
Total Inflation* 348.2%
Annual inflation avg. (1996-2021) 6.17%
Annual inflation avg.* 5.94%
CPI 1996 28.87
CPI 2021 129.01
CPI today* 129.38
R\$1 in 1996 R\$4.47 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 R\$100 worth today. There are 25 years between 1996 and 2021 and the average inflation rate has been 5.9392%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = R\$100 * (1 + 0.06)25 = R\$446.91

#### 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 1996 was 28.87 and the CPI today is 129.38. Therefore,

Final value = Initial value *
CPI final/CPI initial
= R\$100 *
129.01/28.87
= R\$446.91

### Brazil inflation - Conversion table

Initial Value Equivalent value
R\$1 real in 1996 R\$4.48 reals today
R\$5 reals in 1996 R\$22.41 reals today
R\$10 reals in 1996 R\$44.82 reals today
R\$50 reals in 1996 R\$224.1 reals today
R\$100 reals in 1996 R\$448.2 reals today
R\$500 reals in 1996 R\$2,241 reals today
R\$1,000 reals in 1996 R\$4,482 reals today
R\$5,000 reals in 1996 R\$22,409.99 reals today
R\$10,000 reals in 1996 R\$44,819.98 reals today
R\$50,000 reals in 1996 R\$224,099.89 reals today
R\$100,000 reals in 1996 R\$448,199.78 reals today
R\$500,000 reals in 1996 R\$2,240,998.9 reals today
R\$1,000,000 reals in 1996 R\$4,481,997.81 reals today

Period Value
1996 100
1997 109.56
1998 115.29
1999 117.2
2000 127.67
2001 135.3
2002 145.68
2003 163.94
2004 179.19
2005 192.8
2006 203.77
2007 210.17
2008 219.54
2009 232.5
2010 242.53
2011 256.86
2012 273.56
2013 289.53
2014 306.65
2015 326.29
2016 361.12
2017 383.83
2018 395.14
2019 409.94
2020 427.59
2021 446.91
Today 448.2