# Value of 1975 New Zealand Dollars today

\$100 in 1975

\$1,070.43 in 2020

The inflation rate in New Zealand between 1975 and today has been 970.43%, which translates into a total increase of \$970.43. This means that 100 dollars in 1975 are equivalent to 1,070.43 dollars in 2020. In other words, the purchasing power of \$100 in 1975 equals \$1,070.43 today. The average annual inflation rate has been 5.29%.

## Inflation timeline in New Zealand (1975-2020)

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 (1975-2020) 969.82%
Total Inflation* 970.43%
Annual inflation avg. (1975-2020) 5.41%
Annual inflation avg.* 5.29%
CPI 1975 9.98
CPI 2020 106.73
CPI today* 106.79
\$1 in 1975 \$10.7 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 45 years between 1975 and 2020 and the average inflation rate has been 5.2887%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)45 = \$1,069.82

#### 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 1975 was 9.98 and the CPI today is 106.79. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
106.73/9.98
= \$1,069.82

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1975 \$10.7 dollars today
\$5 dollars in 1975 \$53.52 dollars today
\$10 dollars in 1975 \$107.04 dollars today
\$50 dollars in 1975 \$535.21 dollars today
\$100 dollars in 1975 \$1,070.43 dollars today
\$500 dollars in 1975 \$5,352.13 dollars today
\$1,000 dollars in 1975 \$10,704.26 dollars today
\$5,000 dollars in 1975 \$53,521.31 dollars today
\$10,000 dollars in 1975 \$107,042.63 dollars today
\$50,000 dollars in 1975 \$535,213.14 dollars today
\$100,000 dollars in 1975 \$1,070,426.28 dollars today
\$500,000 dollars in 1975 \$5,352,131.41 dollars today
\$1,000,000 dollars in 1975 \$10,704,262.82 dollars today

Period Value
1975 100
1976 115.7
1977 133.8
1978 154.3
1979 169.88
1980 197.97
1981 229.91
1982 266
1983 306.7
1984 317.73
1985 347.6
1986 400.66
1987 473.74
1988 519.17
1989 543.64
1990 582.78
1991 611.05
1992 617.03
1993 625.18
1994 633.88
1995 651.63
1996 670.65
1997 687.76
1998 693.47
1999 696
2000 699.54
2001 727.36
2002 740.57
2003 760.73
2004 772.56
2005 793.42
2006 818.45
2007 840.01
2008 866.76
2009 896.01
2010 913.57
2011 950.34
2012 967.9
2013 977.09
2014 992.97
2015 1,000.49
2016 1,001.33
2017 1,014.7
2018 1,030.88
2019 1,050.35
2020 1,069.82
Today 1,070.43