# Inflation calculator - Japanese Yen

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.

¥100 in 1956

¥612.36 in 2020

The inflation rate in Japan between 1956 and 2020 was 512.36%, which translates into a total increase of ¥512.36. This means that 100 yen in 1956 are equivalent to 612.36 yen in 2020. In other words, the purchasing power of ¥100 in 1956 equals ¥612.36 in 2020. The average annual inflation rate between these periods was 2.87%.

## Inflation timeline in Japan (1956 - 2020)

The following chart depicts the equivalence of japanese yen 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 (JPY) 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 (1956-2020) 512.36%
Annual inflation avg. (1956-2020) 2.87%
CPI 1956 16.71
CPI 2020 102.3
¥1 in 1956 ¥6.12 in 2020

## 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 2020 that equals ¥100 in 1956 in terms of purchasing power. There are 64 years between 1956 and 2020 and the average inflation rate was 2.872%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = ¥100 * (1 + 0.02872)64 = ¥612.359241 ≈ ¥612.36

#### 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 16.71 and in 2020 was 102.3. Therefore,

Final value = Initial value *
CPI final/CPI initial
= ¥100 *
102.3/16.71
= ¥612.36

### Japan inflation - Conversion table

Initial Value Equivalent value
¥1 yen in 1956 ¥6.12 yen in 2020
¥5 yen in 1956 ¥30.62 yen in 2020
¥10 yen in 1956 ¥61.24 yen in 2020
¥50 yen in 1956 ¥306.18 yen in 2020
¥100 yen in 1956 ¥612.36 yen in 2020
¥500 yen in 1956 ¥3,061.8 yen in 2020
¥1,000 yen in 1956 ¥6,123.59 yen in 2020
¥5,000 yen in 1956 ¥30,617.96 yen in 2020
¥10,000 yen in 1956 ¥61,235.92 yen in 2020
¥50,000 yen in 1956 ¥306,179.62 yen in 2020
¥100,000 yen in 1956 ¥612,359.24 yen in 2020
¥500,000 yen in 1956 ¥3,061,796.21 yen in 2020
¥1,000,000 yen in 1956 ¥6,123,592.41 yen in 2020

Period Value
1956 100
1957 102.74
1958 104.61
1959 104.82
1960 107.02
1961 110.86
1962 120.83
1963 126.75
1964 133.5
1965 139.77
1966 148.8
1967 155.36
1968 164.11
1969 170.52
1970 181.45
1971 194.54
1972 204.12
1973 215.49
1974 255
1975 308.87
1976 332.82
1977 368.13
1978 386.69
1979 401.65
1980 424.4
1981 454.93
1982 474.68
1983 484.26
1984 492.64
1985 505.81
1986 512.99
1987 511.2
1988 515.39
1989 520.77
1990 534.54
1991 554.3
1992 569.26
1993 575.85
1994 581.83
1995 585.42
1996 583.03
1997 586.62
1998 597.39
1999 600.99
2000 594.4
2001 592.01
2002 584.82
2003 583.03
2004 580.63
2005 581.83
2006 579.44
2007 581.23
2008 585.42
2009 587.82
2010 577.64
2011 575.85
2012 574.65
2013 573.45
2014 583.03
2015 596.8
2016 597.39
2017 599.19
2018 605.77
2019 607.57
2020 612.36