Value of 1985 Canadian Dollar today

$100 in 1985

$218.41 in 2018

The inflation rate in Canada between 1985 and today has been 118.41%, which translates into a total increase of $118.41. This means that 100 dollars in 1985 are equivalent to 218.41 dollars in 2018. In other words, the purchasing power of $100 in 1985 equals $218.41 today. The average annual inflation rate has been 2.32%.

Inflation timeline in Canada (1985-2018)

The following chart ilustrates the equivalence of $100 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchashing 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 (1985-2018) 113.03%
Total Inflation* 118.41%
Annual inflation avg. (1985-2018) 2.32%
Annual inflation avg.* 2.32%
CPI 1985 48.51
CPI 2018 103.34
CPI today* 105.95
$1 in 1985 $2.13 in 2018

* 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 in 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 33 years between 1985 and 2018 and the average inflation rate has been 2.3242%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = $100 * (1 + 0.02)33 = $213.03

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 1985 was 48.51 and the CPI today is 105.95. Therefore,

Final value = Initial value *
CPI final/CPI initial
= $100 *
103.34/48.51
= $213.03

Canada inflation - Conversion table

Initial Value Equivalent value
$1 dollar in 1985 $2.18 dollars today
$5 dollars in 1985 $10.92 dollars today
$10 dollars in 1985 $21.84 dollars today
$50 dollars in 1985 $109.2 dollars today
$100 dollars in 1985 $218.41 dollars today
$500 dollars in 1985 $1,092.03 dollars today
$1,000 dollars in 1985 $2,184.06 dollars today
$5,000 dollars in 1985 $10,920.31 dollars today
$10,000 dollars in 1985 $21,840.62 dollars today
$50,000 dollars in 1985 $109,203.08 dollars today
$100,000 dollars in 1985 $218,406.16 dollars today
$500,000 dollars in 1985 $1,092,030.79 dollars today
$1,000,000 dollars in 1985 $2,184,061.57 dollars today

Value of Dollar in time (by year)

Period Value
1985 100
1986 104.4
1987 108.79
1988 113.36
1989 117.75
1990 123.94
1991 130.13
1992 135.02
1993 137.95
1994 140.23
1995 140.55
1996 143
1997 146.09
1998 147.23
1999 148.7
2000 152.61
2001 157.49
2002 158.63
2003 164.66
2004 168.08
2005 171.66
2006 175.24
2007 178.18
2008 182.41
2009 184.53
2010 186.97
2011 191.37
2012 195.77
2013 197.39
2014 199.84
2015 202.77
2016 206.03
2017 209.12
2018 213.03
Today 218.41