# Value of 1975 Canadian Dollar today

\$100 in 1975

\$483.97 today

The inflation rate in Canada between 1975 and today has been 383.97%, which translates into a total increase of \$383.97. This means that 100 dollars in 1975 are equivalent to 483.97 dollars in 2019. In other words, the purchasing power of \$100 in 1975 equals \$483.97 today. The average annual inflation rate has been 3.57%.

## Inflation timeline in Canada (1975-2020)

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 (1975-2019) 383.33%
Total Inflation* 383.97%
Annual inflation avg. (1975-2019) 3.65%
Annual inflation avg.* 3.57%
CPI 1975 21.81
CPI 2019 105.4
CPI today* 105.54
\$1 in 1975 \$4.83 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 44 years between 1975 and 2019 and the average inflation rate has been 3.5663%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)44 = \$483.33

#### 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 1975 was 21.81 and the CPI today is 105.54. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
105.4/21.81
= \$483.33

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1975 \$4.84 dollars today
\$5 dollars in 1975 \$24.2 dollars today
\$10 dollars in 1975 \$48.4 dollars today
\$50 dollars in 1975 \$241.99 dollars today
\$100 dollars in 1975 \$483.97 dollars today
\$500 dollars in 1975 \$2,419.87 dollars today
\$1,000 dollars in 1975 \$4,839.74 dollars today
\$5,000 dollars in 1975 \$24,198.69 dollars today
\$10,000 dollars in 1975 \$48,397.38 dollars today
\$50,000 dollars in 1975 \$241,986.92 dollars today
\$100,000 dollars in 1975 \$483,973.84 dollars today
\$500,000 dollars in 1975 \$2,419,869.22 dollars today
\$1,000,000 dollars in 1975 \$4,839,738.43 dollars today

Period Value
1975 100
1976 109.42
1977 115.58
1978 126.45
1979 137.32
1980 150.72
1981 167.39
1982 187.68
1983 205.07
1984 214.49
1985 222.46
1986 232.25
1987 242.03
1988 252.17
1989 261.96
1990 275.72
1991 289.49
1992 300.36
1993 306.88
1994 311.96
1995 312.68
1996 318.12
1997 325
1998 327.54
1999 330.8
2000 339.49
2001 350.36
2002 352.9
2003 366.3
2004 373.91
2005 381.88
2006 389.86
2007 396.38
2008 405.8
2009 410.51
2010 415.94
2011 425.72
2012 435.51
2013 439.13
2014 444.57
2015 451.09
2016 458.33
2017 465.22
2018 473.91
2019 483.33
Today 483.97