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 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%.

Inflation timeline in Iceland (1956 - 2021)

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

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 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

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 1956 was 0.03 and in 2021 was 114.54. Therefore,

Final value = Initial value *
CPI final/CPI initial
= kr100 *
114.54/0.03
= kr386,945.27

Iceland inflation - Conversion table

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

Value of Krona over time (by year)

Period Value
1956 100
1957 106.98
1958 110.47
1959 126.74
1960 116.28
1961 119.77
1962 133.72
1963 146.51
1964 169.77
1965 191.86
1966 209.3
1967 226.74
1968 243.02
1977 1,658.37
1978 2,211.16
1979 3,079.84
1980 4,817.18
1981 7,502.17
1982 11,213.76
1983 18,005.19
1984 31,746
1985 37,747.72
1986 51,330.6
1987 58,279.97
1988 72,494.6
1989 87,419.94
1990 109,452.61
1991 117,349.62
1992 126,194.29
1993 128,040.57
1994 134,097.49
1995 134,801.77
1996 137,478.08
1997 140,295.25
1998 143,253.29
1999 144,943.6
2000 152,972.53
2001 159,452.06
2002 173,217.8
2003 176,667.44
2004 181,566.86
2005 188,609.8
2006 196,357.03
2007 210,161.18
2008 222,415.89
2009 262,768.63
2010 282,438.02
2011 289,452.12
2012 304,641.12
2013 317,444.89
2014 330,587.72
2015 333,321.05
2016 340,037.12
2017 346,474.59
2018 352,956.66
2019 366,153.54
2020 373,588.26
2021 386,945.27