# Value of 2018 Brazilian Reals today

R\$100 in 2018

R\$108.38 in 2020

The inflation rate in Brazil between 2018 and today has been 8.38%, which translates into a total increase of R\$8.38. This means that 100 reals in 2018 are equivalent to 108.38 reals in 2020. In other words, the purchasing power of R\$100 in 2018 equals R\$108.38 today. The average annual inflation rate has been 2.72%.

## Inflation timeline in Brazil (2018-2020)

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 (2018-2020) 8.21%
Total Inflation* 8.38%
Annual inflation avg. (2018-2020) 4.03%
Annual inflation avg.* 2.72%
CPI 2018 114.07
CPI 2020 123.44
CPI today* 123.63
R\$1 in 2018 R\$1.08 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 R\$100 worth today. There are 2 years between 2018 and 2020 and the average inflation rate has been 2.7192%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = R\$100 * (1 + 0.03)2 = R\$108.21

#### 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 2018 was 114.07 and the CPI today is 123.63. Therefore,

Final value = Initial value *
CPI final/CPI initial
= R\$100 *
123.44/114.07
= R\$108.21

### Brazil inflation - Conversion table

Initial Value Equivalent value
R\$1 real in 2018 R\$1.08 reals today
R\$5 reals in 2018 R\$5.42 reals today
R\$10 reals in 2018 R\$10.84 reals today
R\$50 reals in 2018 R\$54.19 reals today
R\$100 reals in 2018 R\$108.38 reals today
R\$500 reals in 2018 R\$541.91 reals today
R\$1,000 reals in 2018 R\$1,083.81 reals today
R\$5,000 reals in 2018 R\$5,419.07 reals today
R\$10,000 reals in 2018 R\$10,838.14 reals today
R\$50,000 reals in 2018 R\$54,190.69 reals today
R\$100,000 reals in 2018 R\$108,381.37 reals today
R\$500,000 reals in 2018 R\$541,906.86 reals today
R\$1,000,000 reals in 2018 R\$1,083,813.72 reals today

Period Value
2018 100
2019 103.75
2020 108.21
Today 108.38