# Inflation calculator - Saudi Riyal

This tool is useful to calculate the time value of money based on historical inflation and CPI values. To start, select an amount and two years, or browse the default calculation results.

﷼100 in 1996

﷼160.99 in 2021

The inflation rate in Saudi Arabia between 1996 and 2021 was 60.99%, which translates into a total increase of ﷼60.99. This means that 100 riyal in 1996 are equivalent to 160.99 riyal in 2021. In other words, the purchasing power of ﷼100 in 1996 equals ﷼160.99 in 2021. The average annual inflation rate between these periods was 1.92%.

## Inflation timeline in Saudi Arabia (1996 - 2021)

The following chart depicts the equivalence of saudi riyals throughout the years due to compound 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 (SAR) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1996-2021) 60.99%
Annual inflation avg. (1996-2021) 1.92%
CPI 1996 66.84
CPI 2021 107.61
﷼1 in 1996 ﷼1.61 in 2021

## How to calculate the time value of money with inflation data?

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, the future value is the amount in 2021 that equals ﷼100 in 1996 in terms of purchasing power. There are 25 years between 1996 and 2021 and the average inflation rate was 1.923%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = ﷼100 * (1 + 0.01923)25 = ﷼160.994138 ≈ ﷼160.99

#### 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 1996 was 66.84 and in 2021 was 107.61. Therefore,

Final value = Initial value *
CPI final/CPI initial
= ﷼100 *
107.61/66.84
= ﷼160.99

### Saudi Arabia inflation - Conversion table

Initial Value Equivalent value
﷼1 riyal in 1996 ﷼1.61 riyal in 2021
﷼5 riyal in 1996 ﷼8.05 riyal in 2021
﷼10 riyal in 1996 ﷼16.1 riyal in 2021
﷼50 riyal in 1996 ﷼80.5 riyal in 2021
﷼100 riyal in 1996 ﷼160.99 riyal in 2021
﷼500 riyal in 1996 ﷼804.97 riyal in 2021
﷼1,000 riyal in 1996 ﷼1,609.94 riyal in 2021
﷼5,000 riyal in 1996 ﷼8,049.71 riyal in 2021
﷼10,000 riyal in 1996 ﷼16,099.41 riyal in 2021
﷼50,000 riyal in 1996 ﷼80,497.07 riyal in 2021
﷼100,000 riyal in 1996 ﷼160,994.14 riyal in 2021
﷼500,000 riyal in 1996 ﷼804,970.69 riyal in 2021
﷼1,000,000 riyal in 1996 ﷼1,609,941.38 riyal in 2021

Period Value
1996 100
1997 101.21
1998 100.78
1999 99.83
2000 99.61
2001 97.82
2002 97.22
2003 97.92
2004 98.51
2005 98.91
2006 100.1
2007 102.99
2008 109.66
2009 119.51
2010 124.58
2011 131.35
2012 137.34
2013 142.26
2014 145.88
2015 148.66
2016 150.49
2017 151.95
2018 150.26
2019 153.13
2020 152.85
2021 160.99