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# Inflation calculator - Icelandic Krona

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.

kr100 in 1955
kr491,622.63 in 2023

The inflation rate in Iceland between 1955 and 2023 was 491,522.63%, which translates into a total increase of kr491,522.63. This means that 100 kronur in 1955 are equivalent to 491,622.63 kronur in 2023. In other words, the purchasing power of kr100 in 1955 equals kr491,622.63 in 2023. The average annual inflation rate between these periods was 13.32%.

## Inflation timeline in Iceland (1955 - 2023)

The following chart depicts the equivalence of kr100 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 (ISK) 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.

The following table contains relevant indicators:

Indicator Value
Cumulative inflation from 1955 to 2023 491,522.63%
Avg. Annual inflation from 1955 to 2023 13.32%
CPI 1955 0.03
CPI 2023 138.48

## 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 Consumer Price Index (CPI) formula or the compound interest formula.

### Using the CPI formula

When we have both the start and end years, we can use the following formula:

Valuet =Value0 ×
CPIt/CPI0

To obtain the values equivalent in buying power between 1955 and 2023, use the corresponding CPI values:

Value2023
=Value1955 ×
CPI2023/CPI1955
=kr 100 ×
138.48/0.03
kr491,622.63

### Alternative: Using the compound interest formula

Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: 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 kr100 worth today. There are 68 years between 1955 and 2023 and the average inflation rate was 13.3153%. Therefore, we can resolve the formula like this:

Value2023
=PV × (1 + i)n
=kr100 × (1 + 0.133153)68
kr491,622.63

## Iceland inflation - Conversion table

Initial Value Equivalent value
kr1 krona in 1955 kr4,916.23 kronur in 2023
kr5 kronur in 1955 kr24,581.13 kronur in 2023
kr10 kronur in 1955 kr49,162.26 kronur in 2023
kr50 kronur in 1955 kr245,811.31 kronur in 2023
kr100 kronur in 1955 kr491,622.63 kronur in 2023
kr500 kronur in 1955 kr2,458,113.14 kronur in 2023
kr1,000 kronur in 1955 kr4,916,226.28 kronur in 2023
kr5,000 kronur in 1955 kr24,581,131.42 kronur in 2023
kr10,000 kronur in 1955 kr49,162,262.85 kronur in 2023
kr50,000 kronur in 1955 kr245,811,314.24 kronur in 2023
kr100,000 kronur in 1955 kr491,622,628.49 kronur in 2023
kr500,000 kronur in 1955 kr2,458,113,142.44 kronur in 2023
kr1,000,000 kronur in 1955 kr4,916,226,284.88 kronur in 2023
 Cumulative inflation 1955-2023 491,522.63% Avg. annual inflation 1955-2023 13.32% CPI 1955 0.03 CPI 2023 138.48

### Value of Krona over time (by year)

Period Value
1955 100
1956 110.06
1957 114.74
1958 121.44
1959 122.66
1960 125.1
1961 131
1962 145.43
1963 164.23
1964 195.83
1965 210.16
1966 232.62
1967 240.35
1968 276.95
1969 337.23
1970 382.32
1971 408.06
1972 448.1
1973 543.79
1974 774.99
1975 1,157.53
1976 1,528.35
1977 1,991.7
1978 2,863.06
1979 4,135.53
1980 6,556
1981 9,951.57
1982 14,951.55
1983 27,503.39
1984 35,988.83
1985 47,503.33
1986 58,015.05
1987 68,630.55
1988 86,286.07
1989 104,197.53
1990 120,359.31
1991 128,554.31
1992 133,629.26
1993 139,031.71
1994 141,190.38
1995 143,521.75
1996 146,765.95
1997 149,430.4
1998 151,909.81
1999 156,819.26
2000 164,874.25
2001 175,434.58
2002 184,551.95
2003 188,345.73
2004 194,294.06
2005 202,040.63
2006 215,551.25
2007 226,439.98
2008 255,185.18
2009 285,815.34
2010 301,240.03
2011 313,292.71
2012 329,539.77
2013 342,300.44
2014 349,299.19
2015 355,003.45
2016 361,027.51
2017 367,383.13
2018 377,239.81
2019 388,609.86
2020 399,677.09
2021 417,439.69
2022 452,123.52
2023 491,622.63

All available years

Today's value of icelandic kronur by year:

1955 | 1956 | 1957 | 1958 | 1959 | 1960 | 1961 | 1962 | 1963 | 1964 | 1965 | 1966 | 1967 | 1968 | 1969 | 1970 | 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 | 2021 | 2022 | 2023 |

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