Value of 2004 Canadian Dollar today

\$100 in 2004

\$133.2 today

The inflation rate in Canada between 2004 and today has been 33.2%, which translates into a total increase of \$33.2. This means that 100 dollars in 2004 are equivalent to 133.2 dollars in 2021. In other words, the purchasing power of \$100 in 2004 equals \$133.2 today. The average annual inflation rate has been 1.61%.

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 (2004-2021) 33.14%
Total Inflation* 33.2%
Annual inflation avg. (2004-2021) 1.7%
Annual inflation avg.* 1.61%
CPI 2004 81.54
CPI 2021 108.56
CPI today* 108.61
\$1 in 2004 \$1.33 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 17 years between 2004 and 2021 and the average inflation rate has been 1.6055%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)17 = \$133.14

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 2004 was 81.54 and the CPI today is 108.61. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.56/81.54
= \$133.14

Initial Value Equivalent value
\$1 dollar in 2004 \$1.33 dollars today
\$5 dollars in 2004 \$6.66 dollars today
\$10 dollars in 2004 \$13.32 dollars today
\$50 dollars in 2004 \$66.6 dollars today
\$100 dollars in 2004 \$133.2 dollars today
\$500 dollars in 2004 \$666.01 dollars today
\$1,000 dollars in 2004 \$1,332.02 dollars today
\$5,000 dollars in 2004 \$6,660.1 dollars today
\$10,000 dollars in 2004 \$13,320.19 dollars today
\$50,000 dollars in 2004 \$66,600.95 dollars today
\$100,000 dollars in 2004 \$133,201.9 dollars today
\$500,000 dollars in 2004 \$666,009.52 dollars today
\$1,000,000 dollars in 2004 \$1,332,019.04 dollars today

Period Value
2004 100
2005 102.13
2006 104.26
2007 106.01
2008 108.53
2009 109.79
2010 111.24
2011 113.86
2012 116.47
2013 117.44
2014 118.9
2015 120.64
2016 122.58
2017 124.42
2018 126.74
2019 129.26
2020 132.17
2021 133.14
Today 133.2