# Value of 1986 South African Rand today

R100 in 1986

R1,201.3 in 2020

The inflation rate in South Africa between 1986 and today has been 1,101.3%, which translates into a total increase of R1,101.3. This means that 100 rand in 1986 are equivalent to 1,201.3 rand in 2020. In other words, the purchasing power of R100 in 1986 equals R1,201.3 today. The average annual inflation rate has been 7.36%.

## Inflation timeline in South Africa (1986-2020)

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 (1986-2020) 1,100.77%
Total Inflation* 1,101.3%
Annual inflation avg. (1986-2020) 7.58%
Annual inflation avg.* 7.36%
CPI 1986 10.3
CPI 2020 123.72
CPI today* 123.77
R1 in 1986 R12.01 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 34 years between 1986 and 2020 and the average inflation rate has been 7.3612%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = R100 * (1 + 0.07)34 = R1,200.77

#### 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 1986 was 10.3 and the CPI today is 123.77. Therefore,

Final value = Initial value *
CPI final/CPI initial
= R100 *
123.72/10.3
= R1,200.77

### South Africa inflation - Conversion table

Initial Value Equivalent value
R1 rand in 1986 R12.01 rand today
R5 rand in 1986 R60.07 rand today
R10 rand in 1986 R120.13 rand today
R50 rand in 1986 R600.65 rand today
R100 rand in 1986 R1,201.3 rand today
R500 rand in 1986 R6,006.52 rand today
R1,000 rand in 1986 R12,013.04 rand today
R5,000 rand in 1986 R60,065.22 rand today
R10,000 rand in 1986 R120,130.44 rand today
R50,000 rand in 1986 R600,652.22 rand today
R100,000 rand in 1986 R1,201,304.45 rand today
R500,000 rand in 1986 R6,006,522.23 rand today
R1,000,000 rand in 1986 R12,013,044.45 rand today

Period Value
1986 100
1987 118.3
1988 135.71
1989 152.68
1990 176.34
1991 201.79
1992 234.82
1993 257.14
1994 281.7
1995 309.38
1996 330.8
1997 361.61
1998 383.93
1999 418.3
2000 427.68
2001 457.59
2002 478.57
2003 543.22
2004 534.34
2005 546.09
2006 557.1
2007 583.94
2008 628.14
2009 686.61
2010 728.92
2011 753.26
2012 800.86
2013 847.41
2014 891.85
2015 939.45
2016 988.12
2017 1,057.94
2018 1,105.55
2019 1,154.22
2020 1,200.77
Today 1,201.3