# Value of 1985 New Zealand Dollars today

\$100 in 1985

\$312.5 in 2021

The inflation rate in New Zealand between 1985 and today has been 212.5%, which translates into a total increase of \$212.5. This means that 100 dollars in 1985 are equivalent to 312.5 dollars in 2021. In other words, the purchasing power of \$100 in 1985 equals \$312.5 today. The average annual inflation rate has been 3.13%.

## Inflation timeline in New Zealand (1985-2021)

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 (1985-2021) 212.2%
Total Inflation* 212.5%
Annual inflation avg. (1985-2021) 3.21%
Annual inflation avg.* 3.13%
CPI 1985 34.68
CPI 2021 108.26
CPI today* 108.37
\$1 in 1985 \$3.12 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 36 years between 1985 and 2021 and the average inflation rate has been 3.1274%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.03)36 = \$312.2

#### 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 1985 was 34.68 and the CPI today is 108.37. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.26/34.68
= \$312.2

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1985 \$3.12 dollars today
\$5 dollars in 1985 \$15.62 dollars today
\$10 dollars in 1985 \$31.25 dollars today
\$50 dollars in 1985 \$156.25 dollars today
\$100 dollars in 1985 \$312.5 dollars today
\$500 dollars in 1985 \$1,562.48 dollars today
\$1,000 dollars in 1985 \$3,124.96 dollars today
\$5,000 dollars in 1985 \$15,624.81 dollars today
\$10,000 dollars in 1985 \$31,249.62 dollars today
\$50,000 dollars in 1985 \$156,248.1 dollars today
\$100,000 dollars in 1985 \$312,496.2 dollars today
\$500,000 dollars in 1985 \$1,562,481.02 dollars today
\$1,000,000 dollars in 1985 \$3,124,962.04 dollars today

Period Value
1985 100
1986 115.27
1987 136.29
1988 149.36
1989 156.4
1990 167.66
1991 175.79
1992 177.51
1993 179.86
1994 182.36
1995 187.47
1996 192.94
1997 197.86
1998 199.5
1999 200.23
2000 201.25
2001 209.25
2002 213.05
2003 218.85
2004 222.26
2005 228.26
2006 235.46
2007 241.66
2008 249.36
2009 257.77
2010 262.82
2011 273.4
2012 278.45
2013 281.1
2014 285.67
2015 287.83
2016 288.07
2017 291.92
2018 296.57
2019 302.17
2020 307.77
2021 312.2
Today 312.5