Value of 1986 Icelandic Kronur today

kr100 in 1986

kr708.13 in 2018

The inflation rate in Iceland between 1986 and today has been 608.13%, which translates into a total increase of kr608.13. This means that 100 kronur in 1986 are equivalent to 708.13 kronur in 2018. In other words, the purchasing power of kr100 in 1986 equals kr708.13 today. The average annual inflation rate has been 6.11%.

Inflation timeline in Iceland (1986-2018)

The following chart ilustrates the equivalence of kr100 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchashing 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. Today's values were obtained by estimating figures from recent trends.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1986-2018) 587.61%
Total Inflation* 608.13%
Annual inflation avg. (1986-2018) 6.21%
Annual inflation avg.* 6.11%
CPI 1986 15.19
CPI 2018 104.48
CPI today* 107.6
kr1 in 1986 kr6.88 in 2018

* Values extrapolated from the last official data to obtain today's values.

How to calculate today's value of money after inflation?

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, it indicates how much are kr100 worth today. There are 32 years between 1986 and 2018 and the average inflation rate has been 6.1112%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = kr100 * (1 + 0.06)32 = kr687.61

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 1986 was 15.19 and the CPI today is 107.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= kr100 *
104.48/15.19
= kr687.61

Iceland inflation - Conversion table

Initial Value Equivalent value
kr1 krona in 1986 kr7.08 kronur today
kr5 kronur in 1986 kr35.41 kronur today
kr10 kronur in 1986 kr70.81 kronur today
kr50 kronur in 1986 kr354.07 kronur today
kr100 kronur in 1986 kr708.13 kronur today
kr500 kronur in 1986 kr3,540.66 kronur today
kr1,000 kronur in 1986 kr7,081.33 kronur today
kr5,000 kronur in 1986 kr35,406.65 kronur today
kr10,000 kronur in 1986 kr70,813.3 kronur today
kr50,000 kronur in 1986 kr354,066.5 kronur today
kr100,000 kronur in 1986 kr708,132.99 kronur today
kr500,000 kronur in 1986 kr3,540,664.97 kronur today
kr1,000,000 kronur in 1986 kr7,081,329.94 kronur today

Value of Krona in time (by year)

Period Value
1986 100
1987 113.54
1988 141.23
1989 170.31
1990 213.23
1991 228.62
1992 245.85
1993 249.44
1994 261.24
1995 262.61
1996 267.83
1997 273.32
1998 279.08
1999 282.37
2000 298.01
2001 310.64
2002 337.46
2003 344.18
2004 353.72
2005 367.44
2006 382.53
2007 409.43
2008 433.3
2009 511.91
2010 550.23
2011 563.9
2012 593.49
2013 618.43
2014 644.04
2015 649.36
2016 662.45
2017 674.99
2018 687.61
Today 708.13