# Value of 1978 New Zealand Dollars today

\$100 in 1978

\$703.95 in 2021

The inflation rate in New Zealand between 1978 and today has been 603.95%, which translates into a total increase of \$603.95. This means that 100 dollars in 1978 are equivalent to 703.95 dollars in 2021. In other words, the purchasing power of \$100 in 1978 equals \$703.95 today. The average annual inflation rate has been 4.54%.

## Inflation timeline in New Zealand (1978-2021)

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 (1978-2021) 603.3%
Total Inflation* 603.95%
Annual inflation avg. (1978-2021) 4.64%
Annual inflation avg.* 4.54%
CPI 1978 15.39
CPI 2021 108.26
CPI today* 108.36
\$1 in 1978 \$7.03 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 43 years between 1978 and 2021 and the average inflation rate has been 4.5351%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)43 = \$703.3

#### 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 1978 was 15.39 and the CPI today is 108.36. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.26/15.39
= \$703.3

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1978 \$7.04 dollars today
\$5 dollars in 1978 \$35.2 dollars today
\$10 dollars in 1978 \$70.39 dollars today
\$50 dollars in 1978 \$351.97 dollars today
\$100 dollars in 1978 \$703.95 dollars today
\$500 dollars in 1978 \$3,519.73 dollars today
\$1,000 dollars in 1978 \$7,039.46 dollars today
\$5,000 dollars in 1978 \$35,197.28 dollars today
\$10,000 dollars in 1978 \$70,394.56 dollars today
\$50,000 dollars in 1978 \$351,972.79 dollars today
\$100,000 dollars in 1978 \$703,945.58 dollars today
\$500,000 dollars in 1978 \$3,519,727.9 dollars today
\$1,000,000 dollars in 1978 \$7,039,455.8 dollars today

Period Value
1978 100
1979 110.1
1980 128.3
1981 149
1982 172.39
1983 198.77
1984 205.92
1985 225.27
1986 259.66
1987 307.02
1988 336.47
1989 352.33
1990 377.69
1991 396.01
1992 399.89
1993 405.17
1994 410.81
1995 422.31
1996 434.64
1997 445.73
1998 449.43
1999 451.07
2000 453.36
2001 471.39
2002 479.95
2003 493.02
2004 500.68
2005 514.2
2006 530.43
2007 544.4
2008 561.74
2009 580.7
2010 592.07
2011 615.91
2012 627.28
2013 633.24
2014 643.53
2015 648.41
2016 648.95
2017 657.62
2018 668.1
2019 680.72
2020 693.34
2021 703.3
Today 703.95