# Value of 1973 New Zealand Dollars today

\$100 in 1973

\$1,327.3 in 2020

The inflation rate in New Zealand between 1973 and today has been 1,227.3%, which translates into a total increase of \$1,227.3. This means that 100 dollars in 1973 are equivalent to 1,327.3 dollars in 2020. In other words, the purchasing power of \$100 in 1973 equals \$1,327.3 today. The average annual inflation rate has been 5.53%.

## Inflation timeline in New Zealand (1973-2020)

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 (1973-2020) 1,226.41%
Total Inflation* 1,227.3%
Annual inflation avg. (1973-2020) 5.65%
Annual inflation avg.* 5.53%
CPI 1973 8.05
CPI 2020 106.73
CPI today* 106.8
\$1 in 1973 \$13.26 in 2020

* 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 47 years between 1973 and 2020 and the average inflation rate has been 5.5347%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.06)47 = \$1,326.41

#### 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 1973 was 8.05 and the CPI today is 106.8. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
106.73/8.05
= \$1,326.41

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1973 \$13.27 dollars today
\$5 dollars in 1973 \$66.36 dollars today
\$10 dollars in 1973 \$132.73 dollars today
\$50 dollars in 1973 \$663.65 dollars today
\$100 dollars in 1973 \$1,327.3 dollars today
\$500 dollars in 1973 \$6,636.48 dollars today
\$1,000 dollars in 1973 \$13,272.97 dollars today
\$5,000 dollars in 1973 \$66,364.84 dollars today
\$10,000 dollars in 1973 \$132,729.68 dollars today
\$50,000 dollars in 1973 \$663,648.41 dollars today
\$100,000 dollars in 1973 \$1,327,296.82 dollars today
\$500,000 dollars in 1973 \$6,636,484.11 dollars today
\$1,000,000 dollars in 1973 \$13,272,968.22 dollars today

Period Value
1973 100
1974 110.16
1975 123.98
1976 143.45
1977 165.89
1978 191.31
1979 210.63
1980 245.45
1981 285.05
1982 329.8
1983 380.25
1984 393.94
1985 430.97
1986 496.75
1987 587.36
1988 643.69
1989 674.03
1990 722.56
1991 757.61
1992 765.02
1993 775.13
1994 785.91
1995 807.92
1996 831.5
1997 852.72
1998 859.79
1999 862.93
2000 867.32
2001 901.81
2002 918.19
2003 943.19
2004 957.85
2005 983.71
2006 1,014.75
2007 1,041.48
2008 1,074.65
2009 1,110.92
2010 1,132.68
2011 1,178.28
2012 1,200.04
2013 1,211.44
2014 1,231.13
2015 1,240.45
2016 1,241.49
2017 1,258.07
2018 1,278.13
2019 1,302.27
2020 1,326.41
Today 1,327.3