# Inflation calculator - Euro

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 1991

€173.6 in 2019

The inflation rate in the eurozone between 1991 and 2019 was 73.6%, which translates into a total increase of €73.6. This means that 100 euro in 1991 are equivalent to 173.6 euro in 2019. In other words, the purchasing power of €100 in 1991 equals €173.6 in 2019. The average annual inflation rate between these periods was 1.99%.

## Inflation timeline in the eurozone (1991 - 2019)

The following chart depicts the equivalence of euro 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 (EUR) 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 (1991-2019) 73.6%
Annual inflation avg. (1991-2019) 1.99%
CPI 1991 59.94
CPI 2019 104.05
€1 in 1991 €1.74 in 2019

## How to calculate the time value of money with inflation data?

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 in 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 2019 that equals €100 in 1991 in terms of purchasing power. There are 28 years between 1991 and 2019 and the average inflation rate was 1.9895%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = €100 * (1 + 0.019895)28 = €173.601552 ≈ €173.6

#### 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 1991 was 59.94 and in 2019 was 104.05. Therefore,

Final value = Initial value *
CPI final/CPI initial
= €100 *
104.05/59.94
= €173.6

### Eurozone inflation - Conversion table

Initial Value Equivalent value
€1 euro in 1991 €1.74 euro in 2019
€5 euro in 1991 €8.68 euro in 2019
€10 euro in 1991 €17.36 euro in 2019
€50 euro in 1991 €86.8 euro in 2019
€100 euro in 1991 €173.6 euro in 2019
€500 euro in 1991 €868.01 euro in 2019
€1,000 euro in 1991 €1,736.02 euro in 2019
€5,000 euro in 1991 €8,680.08 euro in 2019
€10,000 euro in 1991 €17,360.16 euro in 2019
€50,000 euro in 1991 €86,800.78 euro in 2019
€100,000 euro in 1991 €173,601.55 euro in 2019
€500,000 euro in 1991 €868,007.76 euro in 2019
€1,000,000 euro in 1991 €1,736,015.52 euro in 2019

Period Value
1991 100
1992 104.39
1993 107.84
1994 111.28
1995 114.25
1996 117.1
1997 119.68
1998 121.6
1999 122.61
2000 124.85
2001 128.05
2002 130.74
2003 133.76
2004 136.46
2005 139.68
2006 142.85
2007 145.61
2008 150.13
2009 152.61
2010 154.01
2011 157.43
2012 161.77
2013 165.36
2014 166.76
2015 166.48
2016 166.89
2017 168.73
2018 171
2019 173.6