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 1956

kr386,945.27 in 2021

The inflation rate in Iceland between 1956 and 2021 was 386,845.27%, which translates into a total increase of kr386,845.27. This means that **100 kronur in 1956 are equivalent to 386,945.27 kronur in 2021**. In other words, the purchasing power of kr100 in 1956 equals kr386,945.27 in 2021. The average annual inflation rate between these periods was 15.6%.

The following chart depicts the equivalence of icelandic kronur 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 (ISK) 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 (1956-2021) | 386,845.27% |

Annual inflation avg. (1956-2021) | 15.6% |

CPI 1956 | 0.03 |

CPI 2021 | 114.54 |

kr1 in 1956 | kr3,869.45 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 kr100 in 1956 in terms of purchasing power. There are 65 years between 1956 and 2021 and the average inflation rate was 15.5956%. Therefore, we can resolve the formula like this:

**FV = PV (1 + i) ^{n} = kr100 * (1 + 0.155956)^{65} = kr386,945.267971 ≈ kr386,945.27**

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 1956 was 0.03 and in 2021 was 114.54. Therefore,

Final value = Initial value *

CPI finalCPI initial

= kr100 *
114.540.03

= kr386,945.27
Initial Value | Equivalent value | |
---|---|---|

kr1 krona in 1956 | kr3,869.45 kronur in 2021 | |

kr5 kronur in 1956 | kr19,347.26 kronur in 2021 | |

kr10 kronur in 1956 | kr38,694.53 kronur in 2021 | |

kr50 kronur in 1956 | kr193,472.63 kronur in 2021 | |

kr100 kronur in 1956 | kr386,945.27 kronur in 2021 | |

kr500 kronur in 1956 | kr1,934,726.34 kronur in 2021 | |

kr1,000 kronur in 1956 | kr3,869,452.68 kronur in 2021 | |

kr5,000 kronur in 1956 | kr19,347,263.4 kronur in 2021 | |

kr10,000 kronur in 1956 | kr38,694,526.8 kronur in 2021 | |

kr50,000 kronur in 1956 | kr193,472,633.99 kronur in 2021 | |

kr100,000 kronur in 1956 | kr386,945,267.97 kronur in 2021 | |

kr500,000 kronur in 1956 | kr1,934,726,339.86 kronur in 2021 | |

kr1,000,000 kronur in 1956 | kr3,869,452,679.71 kronur in 2021 |

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