# Value of 1981 New Zealand Dollars today

\$100 in 1981

\$465.66 in 2020

The inflation rate in New Zealand between 1981 and today has been 365.66%, which translates into a total increase of \$365.66. This means that 100 dollars in 1981 are equivalent to 465.66 dollars in 2020. In other words, the purchasing power of \$100 in 1981 equals \$465.66 today. The average annual inflation rate has been 3.92%.

## Inflation timeline in New Zealand (1981-2020)

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 (1981-2020) 365.33%
Total Inflation* 365.66%
Annual inflation avg. (1981-2020) 4.02%
Annual inflation avg.* 3.92%
CPI 1981 22.94
CPI 2020 106.73
CPI today* 106.81
\$1 in 1981 \$4.65 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 39 years between 1981 and 2020 and the average inflation rate has been 3.9206%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)39 = \$465.33

#### 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 1981 was 22.94 and the CPI today is 106.81. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
106.73/22.94
= \$465.33

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1981 \$4.66 dollars today
\$5 dollars in 1981 \$23.28 dollars today
\$10 dollars in 1981 \$46.57 dollars today
\$50 dollars in 1981 \$232.83 dollars today
\$100 dollars in 1981 \$465.66 dollars today
\$500 dollars in 1981 \$2,328.31 dollars today
\$1,000 dollars in 1981 \$4,656.63 dollars today
\$5,000 dollars in 1981 \$23,283.14 dollars today
\$10,000 dollars in 1981 \$46,566.28 dollars today
\$50,000 dollars in 1981 \$232,831.42 dollars today
\$100,000 dollars in 1981 \$465,662.83 dollars today
\$500,000 dollars in 1981 \$2,328,314.16 dollars today
\$1,000,000 dollars in 1981 \$4,656,628.33 dollars today

Period Value
1981 100
1982 115.7
1983 133.4
1984 138.2
1985 151.19
1986 174.27
1987 206.06
1988 225.82
1989 236.46
1990 253.49
1991 265.78
1992 268.38
1993 271.93
1994 275.71
1995 283.43
1996 291.7
1997 299.15
1998 301.63
1999 302.73
2000 304.27
2001 316.37
2002 322.12
2003 330.89
2004 336.03
2005 345.1
2006 355.99
2007 365.37
2008 377
2009 389.73
2010 397.36
2011 413.36
2012 420.99
2013 424.99
2014 431.9
2015 435.17
2016 435.54
2017 441.35
2018 448.39
2019 456.86
2020 465.33
Today 465.66