Value of 1940 New Zealand Dollars today

$100 in 1940

$4,821.35 today

The inflation rate in New Zealand between 1940 and today has been 4,721.35%, which translates into a total increase of $4,721.35. This means that 100 dollars in 1940 are equivalent to 4,821.35 dollars in 2018. In other words, the purchasing power of $100 in 1940 equals $4,821.35 today. The average annual inflation rate has been 5.03%.

Inflation timeline in New Zealand (1940-2019)

The following chart ilustrates the equivalence of $100 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 (NZD) 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 (1940-2018) 4,636.55%
Total Inflation* 4,721.35%
Annual inflation avg. (1940-2018) 5.07%
Annual inflation avg.* 5.03%
CPI 1940 2.17
CPI 2018 102.84
CPI today* 104.69
$1 in 1940 $47.37 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 $100 worth today. There are 78 years between 1940 and 2018 and the average inflation rate has been 5.0282%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = $100 * (1 + 0.05)78 = $4,736.55

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 1940 was 2.17 and the CPI today is 104.69. Therefore,

Final value = Initial value *
CPI final/CPI initial
= $100 *
102.84/2.17
= $4,736.55

New Zealand inflation - Conversion table

Initial Value Equivalent value
$1 dollar in 1940 $48.21 dollars today
$5 dollars in 1940 $241.07 dollars today
$10 dollars in 1940 $482.13 dollars today
$50 dollars in 1940 $2,410.67 dollars today
$100 dollars in 1940 $4,821.35 dollars today
$500 dollars in 1940 $24,106.75 dollars today
$1,000 dollars in 1940 $48,213.5 dollars today
$5,000 dollars in 1940 $241,067.48 dollars today
$10,000 dollars in 1940 $482,134.96 dollars today
$50,000 dollars in 1940 $2,410,674.82 dollars today
$100,000 dollars in 1940 $4,821,349.65 dollars today
$500,000 dollars in 1940 $24,106,748.24 dollars today
$1,000,000 dollars in 1940 $48,213,496.47 dollars today

Value of Dollar in time (by year)

Period Value
1940 100
1941 102.73
1942 106.63
1943 110.82
1944 112.38
1945 114.04
1946 115.5
1947 115.3
1948 127
1949 129.04
1950 131.37
1951 142.59
1952 159.63
1953 166.98
1954 176.28
1955 180.53
1956 185.05
1957 193.58
1958 197.08
1959 209.82
1960 212.21
1961 215.54
1962 220.15
1963 224.76
1964 229.75
1965 240.08
1966 245.8
1967 251.59
1968 268.1
1969 281.7
1970 292.87
1971 322.02
1972 351.4
1973 370.58
1974 408.23
1975 459.47
1976 531.6
1977 614.77
1978 708.96
1979 780.56
1980 909.59
1981 1,056.35
1982 1,222.19
1983 1,409.16
1984 1,459.87
1985 1,597.1
1986 1,840.9
1987 2,176.67
1988 2,385.43
1989 2,497.84
1990 2,677.68
1991 2,807.57
1992 2,835.04
1993 2,872.51
1994 2,912.48
1995 2,994.03
1996 3,081.4
1997 3,160.04
1998 3,186.25
1999 3,197.9
2000 3,214.16
2001 3,341.96
2002 3,402.66
2003 3,495.32
2004 3,549.63
2005 3,645.48
2006 3,760.5
2007 3,859.58
2008 3,982.47
2009 4,116.88
2010 4,197.53
2011 4,366.51
2012 4,447.15
2013 4,489.4
2014 4,562.37
2015 4,596.93
2016 4,600.77
2017 4,662.21
2018 4,736.55
Today 4,821.35