# Value of 1980 New Zealand Dollars today

\$100 in 1980

\$548.65 in 2021

The inflation rate in New Zealand between 1980 and today has been 448.65%, which translates into a total increase of \$448.65. This means that 100 dollars in 1980 are equivalent to 548.65 dollars in 2021. In other words, the purchasing power of \$100 in 1980 equals \$548.65 today. The average annual inflation rate has been 4.14%.

## Inflation timeline in New Zealand (1980-2021)

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 (1980-2021) 448.17%
Total Inflation* 448.65%
Annual inflation avg. (1980-2021) 4.24%
Annual inflation avg.* 4.14%
CPI 1980 19.75
CPI 2021 108.26
CPI today* 108.36
\$1 in 1980 \$5.48 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 41 years between 1980 and 2021 and the average inflation rate has been 4.1363%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)41 = \$548.17

#### 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 1980 was 19.75 and the CPI today is 108.36. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.26/19.75
= \$548.17

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1980 \$5.49 dollars today
\$5 dollars in 1980 \$27.43 dollars today
\$10 dollars in 1980 \$54.86 dollars today
\$50 dollars in 1980 \$274.32 dollars today
\$100 dollars in 1980 \$548.65 dollars today
\$500 dollars in 1980 \$2,743.25 dollars today
\$1,000 dollars in 1980 \$5,486.5 dollars today
\$5,000 dollars in 1980 \$27,432.48 dollars today
\$10,000 dollars in 1980 \$54,864.96 dollars today
\$50,000 dollars in 1980 \$274,324.82 dollars today
\$100,000 dollars in 1980 \$548,649.63 dollars today
\$500,000 dollars in 1980 \$2,743,248.17 dollars today
\$1,000,000 dollars in 1980 \$5,486,496.35 dollars today

Period Value
1980 100
1981 116.13
1982 134.37
1983 154.92
1984 160.5
1985 175.58
1986 202.39
1987 239.3
1988 262.25
1989 274.61
1990 294.38
1991 308.66
1992 311.68
1993 315.8
1994 320.2
1995 329.16
1996 338.77
1997 347.41
1998 350.29
1999 351.58
2000 353.36
2001 367.41
2002 374.09
2003 384.27
2004 390.24
2005 400.78
2006 413.43
2007 424.32
2008 437.83
2009 452.61
2010 461.47
2011 480.05
2012 488.92
2013 493.56
2014 501.58
2015 505.38
2016 505.81
2017 512.56
2018 520.73
2019 530.57
2020 540.4
2021 548.17
Today 548.65