# Value of 1972 New Zealand Dollars today

\$100 in 1972

\$1,420.34 in 2021

The inflation rate in New Zealand between 1972 and today has been 1,320.34%, which translates into a total increase of \$1,320.34. This means that 100 dollars in 1972 are equivalent to 1,420.34 dollars in 2021. In other words, the purchasing power of \$100 in 1972 equals \$1,420.34 today. The average annual inflation rate has been 5.45%.

## Inflation timeline in New Zealand (1972-2021)

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 (1972-2021) 1,318.92%
Total Inflation* 1,320.34%
Annual inflation avg. (1972-2021) 5.56%
Annual inflation avg.* 5.45%
CPI 1972 7.63
CPI 2021 108.26
CPI today* 108.37
\$1 in 1972 \$14.19 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 49 years between 1972 and 2021 and the average inflation rate has been 5.4503%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)49 = \$1,418.92

#### 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 1972 was 7.63 and the CPI today is 108.37. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.26/7.63
= \$1,418.92

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1972 \$14.2 dollars today
\$5 dollars in 1972 \$71.02 dollars today
\$10 dollars in 1972 \$142.03 dollars today
\$50 dollars in 1972 \$710.17 dollars today
\$100 dollars in 1972 \$1,420.34 dollars today
\$500 dollars in 1972 \$7,101.7 dollars today
\$1,000 dollars in 1972 \$14,203.4 dollars today
\$5,000 dollars in 1972 \$71,016.98 dollars today
\$10,000 dollars in 1972 \$142,033.96 dollars today
\$50,000 dollars in 1972 \$710,169.81 dollars today
\$100,000 dollars in 1972 \$1,420,339.62 dollars today
\$500,000 dollars in 1972 \$7,101,698.12 dollars today
\$1,000,000 dollars in 1972 \$14,203,396.25 dollars today

Period Value
1972 100
1973 105.46
1974 116.17
1975 130.75
1976 151.28
1977 174.95
1978 201.75
1979 222.13
1980 258.85
1981 300.61
1982 347.81
1983 401.02
1984 415.44
1985 454.5
1986 523.88
1987 619.43
1988 678.84
1989 710.83
1990 762
1991 798.97
1992 806.79
1993 817.45
1994 828.82
1995 852.03
1996 876.89
1997 899.27
1998 906.73
1999 910.05
2000 914.67
2001 951.04
2002 968.32
2003 994.68
2004 1,010.14
2005 1,037.42
2006 1,070.15
2007 1,098.34
2008 1,133.32
2009 1,171.57
2010 1,194.52
2011 1,242.6
2012 1,265.56
2013 1,277.58
2014 1,298.34
2015 1,308.18
2016 1,309.27
2017 1,326.76
2018 1,347.91
2019 1,373.37
2020 1,398.83
2021 1,418.92
Today 1,420.34