# Value of 2008 Canadian Dollar today

\$100 in 2008

\$121.99 in 2020

The inflation rate in Canada between 2008 and today has been 21.99%, which translates into a total increase of \$21.99. This means that 100 dollars in 2008 are equivalent to 121.99 dollars in 2020. In other words, the purchasing power of \$100 in 2008 equals \$121.99 today. The average annual inflation rate has been 1.54%.

## Inflation timeline in Canada (2008-2020)

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 (2008-2020) 21.79%
Total Inflation* 21.99%
Annual inflation avg. (2008-2020) 1.66%
Annual inflation avg.* 1.54%
CPI 2008 88.49
CPI 2020 107.77
CPI today* 107.95
\$1 in 2008 \$1.22 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 12 years between 2008 and 2020 and the average inflation rate has been 1.5408%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)12 = \$121.79

#### 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 2008 was 88.49 and the CPI today is 107.95. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
107.77/88.49
= \$121.79

### Canada inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 2008 \$1.22 dollars today
\$5 dollars in 2008 \$6.1 dollars today
\$10 dollars in 2008 \$12.2 dollars today
\$50 dollars in 2008 \$61 dollars today
\$100 dollars in 2008 \$121.99 dollars today
\$500 dollars in 2008 \$609.96 dollars today
\$1,000 dollars in 2008 \$1,219.91 dollars today
\$5,000 dollars in 2008 \$6,099.56 dollars today
\$10,000 dollars in 2008 \$12,199.11 dollars today
\$50,000 dollars in 2008 \$60,995.57 dollars today
\$100,000 dollars in 2008 \$121,991.14 dollars today
\$500,000 dollars in 2008 \$609,955.7 dollars today
\$1,000,000 dollars in 2008 \$1,219,911.41 dollars today

Period Value
2008 100
2009 101.16
2010 102.5
2011 104.91
2012 107.32
2013 108.21
2014 109.55
2015 111.16
2016 112.95
2017 114.64
2018 116.79
2019 119.11
2020 121.79
Today 121.99