# Value of 1965 New Zealand Dollars today

\$100 in 1965

\$2,078.51 in 2021

The inflation rate in New Zealand between 1965 and today has been 1,978.51%, which translates into a total increase of \$1,978.51. This means that 100 dollars in 1965 are equivalent to 2,078.51 dollars in 2021. In other words, the purchasing power of \$100 in 1965 equals \$2,078.51 today. The average annual inflation rate has been 5.47%.

## Inflation timeline in New Zealand (1965-2021)

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 (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 (1965-2021) 1,976.86%
Total Inflation* 1,978.51%
Annual inflation avg. (1965-2021) 5.57%
Annual inflation avg.* 5.47%
CPI 1965 5.21
CPI 2021 108.26
CPI today* 108.35
\$1 in 1965 \$20.77 in 2021

* 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 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, it indicates how much are \$100 worth today. There are 56 years between 1965 and 2021 and the average inflation rate has been 5.4675%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)56 = \$2,076.86

#### 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 1965 was 5.21 and the CPI today is 108.35. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.26/5.21
= \$2,076.86

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1965 \$20.79 dollars today
\$5 dollars in 1965 \$103.93 dollars today
\$10 dollars in 1965 \$207.85 dollars today
\$50 dollars in 1965 \$1,039.26 dollars today
\$100 dollars in 1965 \$2,078.51 dollars today
\$500 dollars in 1965 \$10,392.56 dollars today
\$1,000 dollars in 1965 \$20,785.13 dollars today
\$5,000 dollars in 1965 \$103,925.65 dollars today
\$10,000 dollars in 1965 \$207,851.29 dollars today
\$50,000 dollars in 1965 \$1,039,256.47 dollars today
\$100,000 dollars in 1965 \$2,078,512.94 dollars today
\$500,000 dollars in 1965 \$10,392,564.69 dollars today
\$1,000,000 dollars in 1965 \$20,785,129.39 dollars today

Period Value
1965 100
1966 102.38
1967 104.79
1968 111.67
1969 117.34
1970 121.99
1971 134.13
1972 146.37
1973 154.36
1974 170.04
1975 191.38
1976 221.43
1977 256.07
1978 295.3
1979 325.13
1980 378.87
1981 440
1982 509.08
1983 586.96
1984 608.08
1985 665.24
1986 766.79
1987 906.65
1988 993.6
1989 1,040.42
1990 1,115.33
1991 1,169.44
1992 1,180.88
1993 1,196.49
1994 1,213.13
1995 1,247.1
1996 1,283.5
1997 1,316.25
1998 1,327.17
1999 1,332.02
2000 1,338.79
2001 1,392.02
2002 1,417.31
2003 1,455.9
2004 1,478.53
2005 1,518.45
2006 1,566.36
2007 1,607.63
2008 1,658.82
2009 1,714.8
2010 1,748.4
2011 1,818.78
2012 1,852.37
2013 1,869.97
2014 1,900.36
2015 1,914.76
2016 1,916.36
2017 1,941.95
2018 1,972.91
2019 2,010.17
2020 2,047.44
2021 2,076.86
Today 2,078.51