This tool is useful to calculate the time value of money based on historical inflation and CPI values. To start, select an amount and two years, or browse the default calculation results.

$100 in 1971

$87,891.66 in 2021

The inflation rate in Colombia between 1971 and 2021 was 87,791.66%, which translates into a total increase of $87,791.66. This means that **100 pesos in 1971 are equivalent to 87,891.66 pesos in 2021**. In other words, the purchasing power of $100 in 1971 equals $87,891.66 in 2021. The average annual inflation rate between these periods was 14.52%.

The following chart depicts the equivalence of colombian pesos throughout the years due to compound 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 (COP) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability.

The following table contains relevant indicators:

Indicator | Value |
---|---|

Total Inflation (1971-2021) | 87,791.66% |

Annual inflation avg. (1971-2021) | 14.52% |

CPI 1971 | 0.14 |

CPI 2021 | 123.27 |

$1 in 1971 | $878.92 in 2021 |

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.

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, the future value is the amount in 2021 that equals $100 in 1971 in terms of purchasing power. There are 50 years between 1971 and 2021 and the average inflation rate was 14.5194%. Therefore, we can resolve the formula like this:

**FV = PV (1 + i) ^{n} = $100 * (1 + 0.145194)^{50} = $87,891.664967 ≈ $87,891.66**

When the CPI for both start and end years is known, the following formula can be used:

Final value = Initial value *

CPI finalCPI initial

In this case, the CPI in 1971 was 0.14 and in 2021 was 123.27. Therefore,

Final value = Initial value *

CPI finalCPI initial

= $100 *
123.270.14

= $87,891.66
Initial Value | Equivalent value | |
---|---|---|

$1 peso in 1971 | $878.92 pesos in 2021 | |

$5 pesos in 1971 | $4,394.58 pesos in 2021 | |

$10 pesos in 1971 | $8,789.17 pesos in 2021 | |

$50 pesos in 1971 | $43,945.83 pesos in 2021 | |

$100 pesos in 1971 | $87,891.66 pesos in 2021 | |

$500 pesos in 1971 | $439,458.32 pesos in 2021 | |

$1,000 pesos in 1971 | $878,916.65 pesos in 2021 | |

$5,000 pesos in 1971 | $4,394,583.25 pesos in 2021 | |

$10,000 pesos in 1971 | $8,789,166.5 pesos in 2021 | |

$50,000 pesos in 1971 | $43,945,832.48 pesos in 2021 | |

$100,000 pesos in 1971 | $87,891,664.97 pesos in 2021 | |

$500,000 pesos in 1971 | $439,458,324.84 pesos in 2021 | |

$1,000,000 pesos in 1971 | $878,916,649.67 pesos in 2021 |

1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020

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