# Value of 1970 Canadian Dollar today

\$100 in 1970

\$679.75 in 2020

The inflation rate in Canada between 1970 and today has been 579.75%, which translates into a total increase of \$579.75. This means that 100 dollars in 1970 are equivalent to 679.75 dollars in 2020. In other words, the purchasing power of \$100 in 1970 equals \$679.75 today. The average annual inflation rate has been 3.83%.

## Inflation timeline in Canada (1970-2020)

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 (1970-2020) 578.61%
Total Inflation* 579.75%
Annual inflation avg. (1970-2020) 3.9%
Annual inflation avg.* 3.83%
CPI 1970 15.88
CPI 2020 107.77
CPI today* 107.95
\$1 in 1970 \$6.79 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 50 years between 1970 and 2020 and the average inflation rate has been 3.8295%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)50 = \$678.61

#### 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 1970 was 15.88 and the CPI today is 107.95. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.77/15.88
= \$678.61

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1970 \$6.8 dollars today
\$5 dollars in 1970 \$33.99 dollars today
\$10 dollars in 1970 \$67.98 dollars today
\$50 dollars in 1970 \$339.88 dollars today
\$100 dollars in 1970 \$679.75 dollars today
\$500 dollars in 1970 \$3,398.76 dollars today
\$1,000 dollars in 1970 \$6,797.52 dollars today
\$5,000 dollars in 1970 \$33,987.58 dollars today
\$10,000 dollars in 1970 \$67,975.15 dollars today
\$50,000 dollars in 1970 \$339,875.77 dollars today
\$100,000 dollars in 1970 \$679,751.54 dollars today
\$500,000 dollars in 1970 \$3,398,757.71 dollars today
\$1,000,000 dollars in 1970 \$6,797,515.41 dollars today

Period Value
1970 100
1971 101
1972 105.97
1973 111.44
1974 121.89
1975 137.31
1976 150.25
1977 158.71
1978 173.63
1979 188.56
1980 206.97
1981 229.85
1982 257.71
1983 281.59
1984 294.53
1985 305.47
1986 318.91
1987 332.34
1988 346.27
1989 359.7
1990 378.61
1991 397.51
1992 412.44
1993 421.39
1994 428.36
1995 429.35
1996 436.82
1997 446.27
1998 449.75
1999 454.23
2000 466.17
2001 481.09
2002 484.58
2003 502.99
2004 513.43
2005 524.38
2006 535.32
2007 544.28
2008 557.21
2009 563.68
2010 571.14
2011 584.58
2012 598.01
2013 602.99
2014 610.45
2015 619.4
2016 629.35
2017 638.81
2018 650.75
2019 663.68
2020 678.61
Today 679.75