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

$1,118.03 in 2020

The inflation rate in Canada between 1950 and 2020 was 1,018.03%, which translates into a total increase of $1,018.03. This means that **100 dollars in 1950 are equivalent to 1,118.03 dollars in 2020**. In other words, the purchasing power of $100 in 1950 equals $1,118.03 in 2020. The average annual inflation rate between these periods was 3.51%.

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 (1950-2020) | 1,018.03% |

Annual inflation avg. (1950-2020) | 3.51% |

CPI 1950 | 9.64 |

CPI 2020 | 107.77 |

$1 in 1950 | $11.18 in 2020 |

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.

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 2020 that equals $100 in 1950 in terms of purchasing power. There are 70 years between 1950 and 2020 and the average inflation rate was 3.509%. Therefore, we can resolve the formula like this:

**FV = PV (1 + i) ^{n} = $100 * (1 + 0.03509)^{70} = $1,118.032855 ≈ $1,118.03**

When the CPI for both start and end years is known, the following formula can be used:

Final value = Initial value *

CPI finalCPI initial

In this case, the CPI in 1950 was 9.64 and in 2020 was 107.77. Therefore,

Final value = Initial value *

CPI finalCPI initial

= $100 *
107.779.64

= $1,118.03
Initial Value | Equivalent value | |
---|---|---|

$1 dollar in 1950 | $11.18 dollars in 2020 | |

$5 dollars in 1950 | $55.9 dollars in 2020 | |

$10 dollars in 1950 | $111.8 dollars in 2020 | |

$50 dollars in 1950 | $559.02 dollars in 2020 | |

$100 dollars in 1950 | $1,118.03 dollars in 2020 | |

$500 dollars in 1950 | $5,590.16 dollars in 2020 | |

$1,000 dollars in 1950 | $11,180.33 dollars in 2020 | |

$5,000 dollars in 1950 | $55,901.64 dollars in 2020 | |

$10,000 dollars in 1950 | $111,803.29 dollars in 2020 | |

$50,000 dollars in 1950 | $559,016.43 dollars in 2020 | |

$100,000 dollars in 1950 | $1,118,032.86 dollars in 2020 | |

$500,000 dollars in 1950 | $5,590,164.28 dollars in 2020 | |

$1,000,000 dollars in 1950 | $11,180,328.55 dollars in 2020 |

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