# Value of 1973 Canadian Dollar today

\$100 in 1973

\$609.96 in 2020

The inflation rate in Canada between 1973 and today has been 509.96%, which translates into a total increase of \$509.96. This means that 100 dollars in 1973 are equivalent to 609.96 dollars in 2020. In other words, the purchasing power of \$100 in 1973 equals \$609.96 today. The average annual inflation rate has been 3.84%.

## Inflation timeline in Canada (1973-2020)

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 (1973-2020) 508.93%
Total Inflation* 509.96%
Annual inflation avg. (1973-2020) 3.92%
Annual inflation avg.* 3.84%
CPI 1973 17.7
CPI 2020 107.77
CPI today* 107.95
\$1 in 1973 \$6.09 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 47 years between 1973 and 2020 and the average inflation rate has been 3.839%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)47 = \$608.93

#### 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 1973 was 17.7 and the CPI today is 107.95. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.77/17.7
= \$608.93

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1973 \$6.1 dollars today
\$5 dollars in 1973 \$30.5 dollars today
\$10 dollars in 1973 \$61 dollars today
\$50 dollars in 1973 \$304.98 dollars today
\$100 dollars in 1973 \$609.96 dollars today
\$500 dollars in 1973 \$3,049.78 dollars today
\$1,000 dollars in 1973 \$6,099.56 dollars today
\$5,000 dollars in 1973 \$30,497.79 dollars today
\$10,000 dollars in 1973 \$60,995.58 dollars today
\$50,000 dollars in 1973 \$304,977.89 dollars today
\$100,000 dollars in 1973 \$609,955.77 dollars today
\$500,000 dollars in 1973 \$3,049,778.86 dollars today
\$1,000,000 dollars in 1973 \$6,099,557.72 dollars today

Period Value
1973 100
1974 109.38
1975 123.21
1976 134.82
1977 142.41
1978 155.8
1979 169.2
1980 185.71
1981 206.25
1982 231.25
1983 252.68
1984 264.29
1985 274.11
1986 286.16
1987 298.21
1988 310.71
1989 322.77
1990 339.73
1991 356.7
1992 370.09
1993 378.13
1994 384.38
1995 385.27
1996 391.96
1997 400.45
1998 403.57
1999 407.59
2000 418.3
2001 431.7
2002 434.82
2003 451.34
2004 460.71
2005 470.54
2006 480.36
2007 488.39
2008 500
2009 505.8
2010 512.5
2011 524.55
2012 536.61
2013 541.07
2014 547.77
2015 555.8
2016 564.73
2017 573.21
2018 583.93
2019 595.54
2020 608.93
Today 609.96