# Value of 1976 New Zealand Dollars today

\$100 in 1976

\$938.8 in 2021

The inflation rate in New Zealand between 1976 and today has been 838.8%, which translates into a total increase of \$838.8. This means that 100 dollars in 1976 are equivalent to 938.8 dollars in 2021. In other words, the purchasing power of \$100 in 1976 equals \$938.8 today. The average annual inflation rate has been 4.99%.

## Inflation timeline in New Zealand (1976-2021)

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 (1976-2021) 837.94%
Total Inflation* 838.8%
Annual inflation avg. (1976-2021) 5.1%
Annual inflation avg.* 4.99%
CPI 1976 11.54
CPI 2021 108.26
CPI today* 108.36
\$1 in 1976 \$9.38 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 45 years between 1976 and 2021 and the average inflation rate has been 4.9888%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)45 = \$937.94

#### 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 1976 was 11.54 and the CPI today is 108.36. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.26/11.54
= \$937.94

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1976 \$9.39 dollars today
\$5 dollars in 1976 \$46.94 dollars today
\$10 dollars in 1976 \$93.88 dollars today
\$50 dollars in 1976 \$469.4 dollars today
\$100 dollars in 1976 \$938.8 dollars today
\$500 dollars in 1976 \$4,693.98 dollars today
\$1,000 dollars in 1976 \$9,387.97 dollars today
\$5,000 dollars in 1976 \$46,939.85 dollars today
\$10,000 dollars in 1976 \$93,879.7 dollars today
\$50,000 dollars in 1976 \$469,398.49 dollars today
\$100,000 dollars in 1976 \$938,796.99 dollars today
\$500,000 dollars in 1976 \$4,693,984.95 dollars today
\$1,000,000 dollars in 1976 \$9,387,969.9 dollars today

Period Value
1976 100
1977 115.64
1978 133.36
1979 146.83
1980 171.1
1981 198.71
1982 229.91
1983 265.08
1984 274.62
1985 300.43
1986 346.29
1987 409.45
1988 448.72
1989 469.87
1990 503.7
1991 528.13
1992 533.3
1993 540.35
1994 547.87
1995 563.21
1996 579.64
1997 594.44
1998 599.37
1999 601.56
2000 604.62
2001 628.66
2002 640.08
2003 657.51
2004 667.72
2005 685.75
2006 707.39
2007 726.03
2008 749.14
2009 774.43
2010 789.6
2011 821.39
2012 836.56
2013 844.5
2014 858.23
2015 864.73
2016 865.45
2017 877.01
2018 890.99
2019 907.82
2020 924.65
2021 937.94
Today 938.8