# Value of 1981 Canadian Dollar today

\$100 in 1981

\$297.51 in 2021

The inflation rate in Canada between 1981 and today has been 197.51%, which translates into a total increase of \$197.51. This means that 100 dollars in 1981 are equivalent to 297.51 dollars in 2021. In other words, the purchasing power of \$100 in 1981 equals \$297.51 today. The average annual inflation rate has been 2.69%.

## Inflation timeline in Canada (1981-2021)

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 (1981-2021) 197.4%
Total Inflation* 197.51%
Annual inflation avg. (1981-2021) 2.76%
Annual inflation avg.* 2.69%
CPI 1981 36.5
CPI 2021 108.56
CPI today* 108.6
\$1 in 1981 \$2.97 in 2021

* 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 40 years between 1981 and 2021 and the average inflation rate has been 2.6948%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.03)40 = \$297.4

#### 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 1981 was 36.5 and the CPI today is 108.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.56/36.5
= \$297.4

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1981 \$2.98 dollars today
\$5 dollars in 1981 \$14.88 dollars today
\$10 dollars in 1981 \$29.75 dollars today
\$50 dollars in 1981 \$148.75 dollars today
\$100 dollars in 1981 \$297.51 dollars today
\$500 dollars in 1981 \$1,487.53 dollars today
\$1,000 dollars in 1981 \$2,975.06 dollars today
\$5,000 dollars in 1981 \$14,875.28 dollars today
\$10,000 dollars in 1981 \$29,750.56 dollars today
\$50,000 dollars in 1981 \$148,752.8 dollars today
\$100,000 dollars in 1981 \$297,505.61 dollars today
\$500,000 dollars in 1981 \$1,487,528.03 dollars today
\$1,000,000 dollars in 1981 \$2,975,056.06 dollars today

Period Value
1981 100
1982 112.12
1983 122.51
1984 128.14
1985 132.9
1986 138.74
1987 144.59
1988 150.65
1989 156.49
1990 164.72
1991 172.94
1992 179.44
1993 183.33
1994 186.36
1995 186.8
1996 190.04
1997 194.16
1998 195.67
1999 197.62
2000 202.81
2001 209.31
2002 210.82
2003 218.83
2004 223.38
2005 228.14
2006 232.9
2007 236.8
2008 242.42
2009 245.24
2010 248.48
2011 254.33
2012 260.17
2013 262.34
2014 265.58
2015 269.48
2016 273.81
2017 277.92
2018 283.12
2019 288.74
2020 295.24
2021 297.4
Today 297.51