# Value of 1985 South African Rand today

R100 in 1985

R1,424.88 in 2020

The inflation rate in South Africa between 1985 and today has been 1,324.88%, which translates into a total increase of R1,324.88. This means that 100 rand in 1985 are equivalent to 1,424.88 rand in 2020. In other words, the purchasing power of R100 in 1985 equals R1,424.88 today. The average annual inflation rate has been 7.66%.

## Inflation timeline in South Africa (1985-2020)

The following chart depicts the equivalence of R100 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 (ZAR) 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 (1985-2020) 1,323.13%
Total Inflation* 1,324.88%
Annual inflation avg. (1985-2020) 7.88%
Annual inflation avg.* 7.66%
CPI 1985 8.69
CPI 2020 123.72
CPI today* 123.87
R1 in 1985 R14.23 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 R100 worth today. There are 35 years between 1985 and 2020 and the average inflation rate has been 7.6588%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = R100 * (1 + 0.08)35 = R1,423.13

#### 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 8.69 and the CPI today is 123.87. Therefore,

Final value = Initial value *
CPI final/CPI initial
= R100 *
123.72/8.69
= R1,423.13

### South Africa inflation - Conversion table

Initial Value Equivalent value
R1 rand in 1985 R14.25 rand today
R5 rand in 1985 R71.24 rand today
R10 rand in 1985 R142.49 rand today
R50 rand in 1985 R712.44 rand today
R100 rand in 1985 R1,424.88 rand today
R500 rand in 1985 R7,124.42 rand today
R1,000 rand in 1985 R14,248.84 rand today
R5,000 rand in 1985 R71,244.2 rand today
R10,000 rand in 1985 R142,488.4 rand today
R50,000 rand in 1985 R712,442.02 rand today
R100,000 rand in 1985 R1,424,884.03 rand today
R500,000 rand in 1985 R7,124,420.16 rand today
R1,000,000 rand in 1985 R14,248,840.32 rand today

Period Value
1985 100
1986 118.52
1987 140.21
1988 160.85
1989 180.95
1990 208.99
1991 239.15
1992 278.31
1993 304.76
1994 333.86
1995 366.67
1996 392.06
1997 428.57
1998 455.03
1999 495.77
2000 506.88
2001 542.33
2002 567.2
2003 643.82
2004 633.29
2005 647.22
2006 660.27
2007 692.08
2008 744.46
2009 813.75
2010 863.91
2011 892.75
2012 949.17
2013 1,004.34
2014 1,057
2015 1,113.43
2016 1,171.1
2017 1,253.86
2018 1,310.28
2019 1,367.96
2020 1,423.13
Today 1,424.88