# Inflation calculator - New Zealand Dollar

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 1927

\$4,898.19 in 2019

The inflation rate in New Zealand between 1927 and 2019 was 4,798.19%, which translates into a total increase of \$4,798.19. This means that 100 dollars in 1927 are equivalent to 4,898.19 dollars in 2019. In other words, the purchasing power of \$100 in 1927 equals \$4,898.19 in 2019. The average annual inflation rate between these periods was 4.32%.

## Inflation timeline in New Zealand (1927 - 2019)

The following chart depicts the equivalence of New Zealand dollars 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 (NZD) 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 (1927-2019) 4,798.19%
Annual inflation avg. (1927-2019) 4.32%
CPI 1927 2.14
CPI 2019 104.79
\$1 in 1927 \$48.98 in 2019

## 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 2019 that equals \$100 in 1927 in terms of purchasing power. There are 92 years between 1927 and 2019 and the average inflation rate was 4.3206%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.043206)92 = \$4,898.190331 ≈ \$4,898.19

#### 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 1927 was 2.14 and in 2019 was 104.79. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
104.79/2.14
= \$4,898.19

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1927 \$48.98 dollars in 2019
\$5 dollars in 1927 \$244.91 dollars in 2019
\$10 dollars in 1927 \$489.82 dollars in 2019
\$50 dollars in 1927 \$2,449.1 dollars in 2019
\$100 dollars in 1927 \$4,898.19 dollars in 2019
\$500 dollars in 1927 \$24,490.95 dollars in 2019
\$1,000 dollars in 1927 \$48,981.9 dollars in 2019
\$5,000 dollars in 1927 \$244,909.52 dollars in 2019
\$10,000 dollars in 1927 \$489,819.03 dollars in 2019
\$50,000 dollars in 1927 \$2,449,095.17 dollars in 2019
\$100,000 dollars in 1927 \$4,898,190.33 dollars in 2019
\$500,000 dollars in 1927 \$24,490,951.65 dollars in 2019
\$1,000,000 dollars in 1927 \$48,981,903.31 dollars in 2019

Period Value
1927 100
1928 99.08
1929 99.69
1930 99.22
1931 95.26
1932 87.84
1933 79.73
1934 79.14
1935 80.13
1936 84.58
1937 87.35
1938 93.68
1939 94.27
1940 101.5
1941 104.27
1942 108.22
1943 112.48
1944 114.06
1945 115.74
1946 117.22
1947 117.03
1948 128.9
1949 130.98
1950 133.33
1951 144.73
1952 162.02
1953 169.48
1954 178.91
1955 183.23
1956 187.82
1957 196.47
1958 200.03
1959 212.95
1960 215.39
1961 218.76
1962 223.44
1963 228.12
1964 233.18
1965 243.67
1966 249.48
1967 255.35
1968 272.11
1969 285.92
1970 297.25
1971 326.83
1972 356.66
1973 376.13
1974 414.33
1975 466.34
1976 539.55
1977 623.96
1978 719.56
1979 792.24
1980 923.2
1981 1,072.15
1982 1,240.47
1983 1,430.24
1984 1,481.71
1985 1,620.99
1986 1,868.43
1987 2,209.22
1988 2,421.11
1989 2,535.2
1990 2,717.73
1991 2,849.56
1992 2,877.45
1993 2,915.48
1994 2,956.04
1995 3,038.81
1996 3,127.49
1997 3,207.3
1998 3,233.91
1999 3,245.73
2000 3,262.23
2001 3,391.94
2002 3,453.56
2003 3,547.6
2004 3,602.72
2005 3,700.01
2006 3,816.75
2007 3,917.31
2008 4,042.04
2009 4,178.46
2010 4,260.31
2011 4,431.82
2012 4,513.67
2013 4,556.55
2014 4,630.61
2015 4,665.69
2016 4,669.58
2017 4,731.95
2018 4,807.39
2019 4,898.19