# Inflation calculator - Indian Rupee

\$100 in 1980

\$183.91 in 1987

The inflation rate in India between 1980 and 1987 was 83.91%, which translates into a total increase of \$83.91. This means that 100 rupees in 1980 are equivalent to 183.91 rupees in 1987. In other words, the purchasing power of \$100 in 1980 equals \$183.91 in 1987. The average annual inflation rate between these periods was 9.09%.

## Inflation timeline in India (1980 - 1987)

The following chart depicts the equivalence of \$100 throughout the years due to 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 (INR) 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 (1980-1987) 83.91%
Annual inflation avg. (1980-1987) 9.09%
CPI 1980 6.29
CPI 1987 11.57
\$1 in 1980 \$1.84 in 1987

## 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 1987 that equals \$100 in 1980 in terms of purchasing power. There are 7 years between 1980 and 1987 and the average inflation rate was 9.0941%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.090941)7 = \$183.912059 ≈ \$183.91

#### 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 1980 was 6.29 and in 1987 was 11.57. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
11.57/6.29
= \$183.91

### India inflation - Conversion table

Initial Value Equivalent value
\$1 rupee in 1980 \$1.84 rupees in 1987
\$5 rupees in 1980 \$9.2 rupees in 1987
\$10 rupees in 1980 \$18.39 rupees in 1987
\$50 rupees in 1980 \$91.96 rupees in 1987
\$100 rupees in 1980 \$183.91 rupees in 1987
\$500 rupees in 1980 \$919.56 rupees in 1987
\$1,000 rupees in 1980 \$1,839.12 rupees in 1987
\$5,000 rupees in 1980 \$9,195.6 rupees in 1987
\$10,000 rupees in 1980 \$18,391.21 rupees in 1987
\$50,000 rupees in 1980 \$91,956.03 rupees in 1987
\$100,000 rupees in 1980 \$183,912.06 rupees in 1987
\$500,000 rupees in 1980 \$919,560.29 rupees in 1987
\$1,000,000 rupees in 1980 \$1,839,120.59 rupees in 1987

Period Value
1980 100
1981 109.09
1982 122.97
1983 132.87
1984 149.42
1985 157.18
1986 168.4
1987 183.91