# Value of 1950 Canadian Dollar today

\$100 in 1950

\$1,119.92 in 2020

The inflation rate in Canada between 1950 and today has been 1,019.92%, which translates into a total increase of \$1,019.92. This means that 100 dollars in 1950 are equivalent to 1,119.92 dollars in 2020. In other words, the purchasing power of \$100 in 1950 equals \$1,119.92 today. The average annual inflation rate has been 3.46%.

## Inflation timeline in Canada (1950-2020)

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 (CAD) 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 (1950-2020) 1,018.03%
Total Inflation* 1,019.92%
Annual inflation avg. (1950-2020) 3.51%
Annual inflation avg.* 3.46%
CPI 1950 9.64
CPI 2020 107.77
CPI today* 107.95
\$1 in 1950 \$11.18 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 70 years between 1950 and 2020 and the average inflation rate has been 3.4611%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.03)70 = \$1,118.03

#### 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 the CPI today is 107.95. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.77/9.64
= \$1,118.03

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1950 \$11.2 dollars today
\$5 dollars in 1950 \$56 dollars today
\$10 dollars in 1950 \$111.99 dollars today
\$50 dollars in 1950 \$559.96 dollars today
\$100 dollars in 1950 \$1,119.92 dollars today
\$500 dollars in 1950 \$5,599.59 dollars today
\$1,000 dollars in 1950 \$11,199.19 dollars today
\$5,000 dollars in 1950 \$55,995.93 dollars today
\$10,000 dollars in 1950 \$111,991.86 dollars today
\$50,000 dollars in 1950 \$559,959.3 dollars today
\$100,000 dollars in 1950 \$1,119,918.6 dollars today
\$500,000 dollars in 1950 \$5,599,592.99 dollars today
\$1,000,000 dollars in 1950 \$11,199,185.99 dollars today

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
Today 1,119.92