# Value of 1986 Canadian Dollar today

\$100 in 1986

\$213.15 in 2020

The inflation rate in Canada between 1986 and today has been 113.15%, which translates into a total increase of \$113.15. This means that 100 dollars in 1986 are equivalent to 213.15 dollars in 2020. In other words, the purchasing power of \$100 in 1986 equals \$213.15 today. The average annual inflation rate has been 2.19%.

## Inflation timeline in Canada (1986-2020)

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 (1986-2020) 112.79%
Total Inflation* 113.15%
Annual inflation avg. (1986-2020) 2.25%
Annual inflation avg.* 2.19%
CPI 1986 50.65
CPI 2020 107.77
CPI today* 107.95
\$1 in 1986 \$2.13 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 34 years between 1986 and 2020 and the average inflation rate has been 2.1859%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)34 = \$212.79

#### 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 1986 was 50.65 and the CPI today is 107.95. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.77/50.65
= \$212.79

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1986 \$2.13 dollars today
\$5 dollars in 1986 \$10.66 dollars today
\$10 dollars in 1986 \$21.32 dollars today
\$50 dollars in 1986 \$106.58 dollars today
\$100 dollars in 1986 \$213.15 dollars today
\$500 dollars in 1986 \$1,065.76 dollars today
\$1,000 dollars in 1986 \$2,131.51 dollars today
\$5,000 dollars in 1986 \$10,657.57 dollars today
\$10,000 dollars in 1986 \$21,315.15 dollars today
\$50,000 dollars in 1986 \$106,575.73 dollars today
\$100,000 dollars in 1986 \$213,151.46 dollars today
\$500,000 dollars in 1986 \$1,065,757.32 dollars today
\$1,000,000 dollars in 1986 \$2,131,514.64 dollars today

Period Value
1986 100
1987 104.21
1988 108.58
1989 112.79
1990 118.72
1991 124.65
1992 129.33
1993 132.14
1994 134.32
1995 134.63
1996 136.97
1997 139.94
1998 141.03
1999 142.43
2000 146.18
2001 150.86
2002 151.95
2003 157.72
2004 161
2005 164.43
2006 167.86
2007 170.67
2008 174.73
2009 176.76
2010 179.1
2011 183.31
2012 187.52
2013 189.08
2014 191.42
2015 194.23
2016 197.35
2017 200.31
2018 204.06
2019 208.11
2020 212.79
Today 213.15