# Inflation calculator - Canadian Dollar

This tool is useful to calculate the time value of money based on historical inflation and CPI values. To start, select an amount and two years, or browse the default calculation results.

\$100 in 1950

\$1,126.23 in 2021

The inflation rate in Canada between 1950 and 2021 was 1,026.23%, which translates into a total increase of \$1,026.23. This means that 100 dollars in 1950 are equivalent to 1,126.23 dollars in 2021. In other words, the purchasing power of \$100 in 1950 equals \$1,126.23 in 2021. The average annual inflation rate between these periods was 3.47%.

## Inflation timeline in Canada (1950 - 2021)

The following chart depicts the equivalence of canadian dollar throughout the years due to compound 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 (CAD) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1950-2021) 1,026.23%
Annual inflation avg. (1950-2021) 3.47%
CPI 1950 9.64
CPI 2021 108.56
\$1 in 1950 \$11.26 in 2021

## How to calculate the time value of money with inflation data?

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, the future value is the amount in 2021 that equals \$100 in 1950 in terms of purchasing power. There are 71 years between 1950 and 2021 and the average inflation rate was 3.4693%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.034693)71 = \$1,126.229603 ≈ \$1,126.23

#### 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 1950 was 9.64 and in 2021 was 108.56. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.56/9.64
= \$1,126.23

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1950 \$11.26 dollars in 2021
\$5 dollars in 1950 \$56.31 dollars in 2021
\$10 dollars in 1950 \$112.62 dollars in 2021
\$50 dollars in 1950 \$563.11 dollars in 2021
\$100 dollars in 1950 \$1,126.23 dollars in 2021
\$500 dollars in 1950 \$5,631.15 dollars in 2021
\$1,000 dollars in 1950 \$11,262.3 dollars in 2021
\$5,000 dollars in 1950 \$56,311.48 dollars in 2021
\$10,000 dollars in 1950 \$112,622.96 dollars in 2021
\$50,000 dollars in 1950 \$563,114.8 dollars in 2021
\$100,000 dollars in 1950 \$1,126,229.6 dollars in 2021
\$500,000 dollars in 1950 \$5,631,148.01 dollars in 2021
\$1,000,000 dollars in 1950 \$11,262,296.03 dollars in 2021

Period Value
1950 100
1951 105.74
1952 117.21
1953 115.57
1954 115.57
1955 115.57
1956 116.39
1957 119.67
1958 122.13
1959 125.41
1960 127.05
1961 128.69
1962 128.69
1963 131.15
1964 133.61
1965 136.07
1966 140.16
1967 145.08
1968 150.82
1969 157.38
1970 164.75
1971 166.39
1972 174.59
1973 183.61
1974 200.82
1975 226.23
1976 247.54
1977 261.48
1978 286.07
1979 310.66
1980 340.98
1981 378.69
1982 424.59
1983 463.93
1984 485.25
1985 503.28
1986 525.41
1987 547.54
1988 570.49
1989 592.62
1990 623.77
1991 654.92
1992 679.51
1993 694.26
1994 705.74
1995 707.38
1996 719.67
1997 735.25
1998 740.98
1999 748.36
2000 768.03
2001 792.62
2002 798.36
2003 828.69
2004 845.9
2005 863.93
2006 881.97
2007 896.72
2008 918.03
2009 928.69
2010 940.98
2011 963.11
2012 985.25
2013 993.44
2014 1,005.74
2015 1,020.49
2016 1,036.89
2017 1,052.46
2018 1,072.13
2019 1,093.44
2020 1,118.03
2021 1,126.23