# Value of 1996 Canadian Dollar today

\$100 in 1996

\$155.62 in 2020

The inflation rate in Canada between 1996 and today has been 55.62%, which translates into a total increase of \$55.62. This means that 100 dollars in 1996 are equivalent to 155.62 dollars in 2020. In other words, the purchasing power of \$100 in 1996 equals \$155.62 today. The average annual inflation rate has been 1.78%.

## Inflation timeline in Canada (1996-2020)

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 (1996-2020) 55.35%
Total Inflation* 55.62%
Annual inflation avg. (1996-2020) 1.85%
Annual inflation avg.* 1.78%
CPI 1996 69.37
CPI 2020 107.77
CPI today* 107.95
\$1 in 1996 \$1.55 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 24 years between 1996 and 2020 and the average inflation rate has been 1.7846%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)24 = \$155.35

#### 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 1996 was 69.37 and the CPI today is 107.95. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.77/69.37
= \$155.35

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1996 \$1.56 dollars today
\$5 dollars in 1996 \$7.78 dollars today
\$10 dollars in 1996 \$15.56 dollars today
\$50 dollars in 1996 \$77.81 dollars today
\$100 dollars in 1996 \$155.62 dollars today
\$500 dollars in 1996 \$778.08 dollars today
\$1,000 dollars in 1996 \$1,556.15 dollars today
\$5,000 dollars in 1996 \$7,780.76 dollars today
\$10,000 dollars in 1996 \$15,561.51 dollars today
\$50,000 dollars in 1996 \$77,807.56 dollars today
\$100,000 dollars in 1996 \$155,615.13 dollars today
\$500,000 dollars in 1996 \$778,075.64 dollars today
\$1,000,000 dollars in 1996 \$1,556,151.28 dollars today

Period Value
1996 100
1997 102.16
1998 102.96
1999 103.99
2000 106.72
2001 110.14
2002 110.93
2003 115.15
2004 117.54
2005 120.05
2006 122.55
2007 124.6
2008 127.56
2009 129.04
2010 130.75
2011 133.83
2012 136.9
2013 138.04
2014 139.75
2015 141.8
2016 144.08
2017 146.24
2018 148.97
2019 151.94
2020 155.35
Today 155.62