# Value of 1994 New Zealand Dollars today

\$100 in 1994

\$165.87 in 2019

The inflation rate in New Zealand between 1994 and today has been 65.87%, which translates into a total increase of \$65.87. This means that 100 dollars in 1994 are equivalent to 165.87 dollars in 2019. In other words, the purchasing power of \$100 in 1994 equals \$165.87 today. The average annual inflation rate has been 1.97%.

## Inflation timeline in New Zealand (1994-2019)

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 (1994-2019) 65.7%
Total Inflation* 65.87%
Annual inflation avg. (1994-2019) 2.04%
Annual inflation avg.* 1.97%
CPI 1994 63.24
CPI 2019 104.79
CPI today* 104.9
\$1 in 1994 \$1.66 in 2019

* 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 in 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 25 years between 1994 and 2019 and the average inflation rate has been 1.9655%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)25 = \$165.7

#### 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 1994 was 63.24 and the CPI today is 104.9. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
104.79/63.24
= \$165.7

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1994 \$1.66 dollars today
\$5 dollars in 1994 \$8.29 dollars today
\$10 dollars in 1994 \$16.59 dollars today
\$50 dollars in 1994 \$82.94 dollars today
\$100 dollars in 1994 \$165.87 dollars today
\$500 dollars in 1994 \$829.37 dollars today
\$1,000 dollars in 1994 \$1,658.75 dollars today
\$5,000 dollars in 1994 \$8,293.75 dollars today
\$10,000 dollars in 1994 \$16,587.49 dollars today
\$50,000 dollars in 1994 \$82,937.47 dollars today
\$100,000 dollars in 1994 \$165,874.95 dollars today
\$500,000 dollars in 1994 \$829,374.75 dollars today
\$1,000,000 dollars in 1994 \$1,658,749.49 dollars today

Period Value
1994 100
1995 102.8
1996 105.8
1997 108.5
1998 109.4
1999 109.8
2000 110.36
2001 114.75
2002 116.83
2003 120.01
2004 121.88
2005 125.17
2006 129.12
2007 132.52
2008 136.74
2009 141.35
2010 144.12
2011 149.92
2012 152.69
2013 154.14
2014 156.65
2015 157.84
2016 157.97
2017 160.08
2018 162.63
2019 165.7
Today 165.87