# Value of 1974 Canadian Dollar today

\$100 in 1974

\$557.67 in 2020

The inflation rate in Canada between 1974 and today has been 457.67%, which translates into a total increase of \$457.67. This means that 100 dollars in 1974 are equivalent to 557.67 dollars in 2020. In other words, the purchasing power of \$100 in 1974 equals \$557.67 today. The average annual inflation rate has been 3.72%.

## Inflation timeline in Canada (1974-2020)

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 (1974-2020) 456.73%
Total Inflation* 457.67%
Annual inflation avg. (1974-2020) 3.8%
Annual inflation avg.* 3.72%
CPI 1974 19.36
CPI 2020 107.77
CPI today* 107.95
\$1 in 1974 \$5.57 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 46 years between 1974 and 2020 and the average inflation rate has been 3.7243%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)46 = \$556.73

#### 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 1974 was 19.36 and the CPI today is 107.95. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.77/19.36
= \$556.73

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1974 \$5.58 dollars today
\$5 dollars in 1974 \$27.88 dollars today
\$10 dollars in 1974 \$55.77 dollars today
\$50 dollars in 1974 \$278.84 dollars today
\$100 dollars in 1974 \$557.67 dollars today
\$500 dollars in 1974 \$2,788.37 dollars today
\$1,000 dollars in 1974 \$5,576.74 dollars today
\$5,000 dollars in 1974 \$27,883.68 dollars today
\$10,000 dollars in 1974 \$55,767.37 dollars today
\$50,000 dollars in 1974 \$278,836.84 dollars today
\$100,000 dollars in 1974 \$557,673.69 dollars today
\$500,000 dollars in 1974 \$2,788,368.43 dollars today
\$1,000,000 dollars in 1974 \$5,576,736.86 dollars today

Period Value
1974 100
1975 112.65
1976 123.27
1977 130.2
1978 142.45
1979 154.69
1980 169.8
1981 188.57
1982 211.43
1983 231.02
1984 241.63
1985 250.61
1986 261.63
1987 272.65
1988 284.08
1989 295.1
1990 310.61
1991 326.12
1992 338.37
1993 345.71
1994 351.43
1995 352.24
1996 358.37
1997 366.12
1998 368.98
1999 372.65
2000 382.45
2001 394.69
2002 397.55
2003 412.65
2004 421.22
2005 430.2
2006 439.18
2007 446.53
2008 457.14
2009 462.45
2010 468.57
2011 479.59
2012 490.61
2013 494.69
2014 500.82
2015 508.16
2016 516.33
2017 524.08
2018 533.88
2019 544.49
2020 556.73
Today 557.67