# Value of 1972 Canadian Dollar today

\$100 in 1972

\$627.02 today

The inflation rate in Canada between 1972 and today has been 527.02%, which translates into a total increase of \$527.02. This means that 100 dollars in 1972 are equivalent to 627.02 dollars in 2019. In other words, the purchasing power of \$100 in 1972 equals \$627.02 today. The average annual inflation rate has been 3.9%.

## Inflation timeline in Canada (1972-2020)

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 (1972-2019) 526.29%
Total Inflation* 527.02%
Annual inflation avg. (1972-2019) 3.98%
Annual inflation avg.* 3.9%
CPI 1972 16.83
CPI 2019 105.4
CPI today* 105.52
\$1 in 1972 \$6.26 in 2019

* 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 47 years between 1972 and 2019 and the average inflation rate has been 3.8987%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)47 = \$626.29

#### 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 1972 was 16.83 and the CPI today is 105.52. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
105.4/16.83
= \$626.29

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1972 \$6.27 dollars today
\$5 dollars in 1972 \$31.35 dollars today
\$10 dollars in 1972 \$62.7 dollars today
\$50 dollars in 1972 \$313.51 dollars today
\$100 dollars in 1972 \$627.02 dollars today
\$500 dollars in 1972 \$3,135.09 dollars today
\$1,000 dollars in 1972 \$6,270.18 dollars today
\$5,000 dollars in 1972 \$31,350.88 dollars today
\$10,000 dollars in 1972 \$62,701.75 dollars today
\$50,000 dollars in 1972 \$313,508.76 dollars today
\$100,000 dollars in 1972 \$627,017.51 dollars today
\$500,000 dollars in 1972 \$3,135,087.57 dollars today
\$1,000,000 dollars in 1972 \$6,270,175.13 dollars today

Period Value
1972 100
1973 105.16
1974 115.02
1975 129.58
1976 141.78
1977 149.77
1978 163.85
1979 177.93
1980 195.31
1981 216.9
1982 243.19
1983 265.73
1984 277.93
1985 288.26
1986 300.94
1987 313.62
1988 326.76
1989 339.44
1990 357.28
1991 375.12
1992 389.2
1993 397.65
1994 404.23
1995 405.16
1996 412.21
1997 421.13
1998 424.41
1999 428.64
2000 439.91
2001 453.99
2002 457.28
2003 474.65
2004 484.51
2005 494.84
2006 505.16
2007 513.62
2008 525.82
2009 531.93
2010 538.97
2011 551.64
2012 564.32
2013 569.01
2014 576.06
2015 584.51
2016 593.9
2017 602.82
2018 614.08
2019 626.29
Today 627.02