# Value of 1971 New Zealand Dollars today

\$100 in 1971

\$1,549.89 in 2021

The inflation rate in New Zealand between 1971 and today has been 1,449.89%, which translates into a total increase of \$1,449.89. This means that 100 dollars in 1971 are equivalent to 1,549.89 dollars in 2021. In other words, the purchasing power of \$100 in 1971 equals \$1,549.89 today. The average annual inflation rate has been 5.52%.

## Inflation timeline in New Zealand (1971-2021)

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 (1971-2021) 1,448.4%
Total Inflation* 1,449.89%
Annual inflation avg. (1971-2021) 5.63%
Annual inflation avg.* 5.52%
CPI 1971 6.99
CPI 2021 108.26
CPI today* 108.37
\$1 in 1971 \$15.48 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 50 years between 1971 and 2021 and the average inflation rate has been 5.5211%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.06)50 = \$1,548.4

#### 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 1971 was 6.99 and the CPI today is 108.37. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.26/6.99
= \$1,548.4

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1971 \$15.5 dollars today
\$5 dollars in 1971 \$77.49 dollars today
\$10 dollars in 1971 \$154.99 dollars today
\$50 dollars in 1971 \$774.94 dollars today
\$100 dollars in 1971 \$1,549.89 dollars today
\$500 dollars in 1971 \$7,749.43 dollars today
\$1,000 dollars in 1971 \$15,498.86 dollars today
\$5,000 dollars in 1971 \$77,494.32 dollars today
\$10,000 dollars in 1971 \$154,988.64 dollars today
\$50,000 dollars in 1971 \$774,943.2 dollars today
\$100,000 dollars in 1971 \$1,549,886.39 dollars today
\$500,000 dollars in 1971 \$7,749,431.96 dollars today
\$1,000,000 dollars in 1971 \$15,498,863.93 dollars today

Period Value
1971 100
1972 109.13
1973 115.08
1974 126.77
1975 142.68
1976 165.09
1977 190.91
1978 220.16
1979 242.4
1980 282.47
1981 328.04
1982 379.54
1983 437.61
1984 453.35
1985 495.97
1986 571.68
1987 675.95
1988 740.78
1989 775.69
1990 831.54
1991 871.87
1992 880.41
1993 892.04
1994 904.45
1995 929.78
1996 956.91
1997 981.33
1998 989.47
1999 993.09
2000 998.14
2001 1,037.83
2002 1,056.68
2003 1,085.45
2004 1,102.32
2005 1,132.08
2006 1,167.8
2007 1,198.57
2008 1,236.73
2009 1,278.48
2010 1,303.52
2011 1,355.99
2012 1,381.04
2013 1,394.16
2014 1,416.82
2015 1,427.55
2016 1,428.74
2017 1,447.82
2018 1,470.91
2019 1,498.69
2020 1,526.47
2021 1,548.4
Today 1,549.89