# Value of 1987 South African Rand today

R100 in 1987

R1,048.35 in 2021

The inflation rate in South Africa between 1987 and today has been 948.35%, which translates into a total increase of R948.35. This means that 100 rand in 1987 are equivalent to 1,048.35 rand in 2021. In other words, the purchasing power of R100 in 1987 equals R1,048.35 today. The average annual inflation rate has been 6.94%.

## Inflation timeline in South Africa (1987-2021)

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 (1987-2021) 946.29%
Total Inflation* 948.35%
Annual inflation avg. (1987-2021) 7.15%
Annual inflation avg.* 6.94%
CPI 1987 12.19
CPI 2021 127.53
CPI today* 127.78
R1 in 1987 R10.46 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 R100 worth today. There are 34 years between 1987 and 2021 and the average inflation rate has been 6.9442%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = R100 * (1 + 0.07)34 = R1,046.29

#### 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 1987 was 12.19 and the CPI today is 127.78. Therefore,

Final value = Initial value *
CPI final/CPI initial
= R100 *
127.53/12.19
= R1,046.29

### South Africa inflation - Conversion table

Initial Value Equivalent value
R1 rand in 1987 R10.48 rand today
R5 rand in 1987 R52.42 rand today
R10 rand in 1987 R104.83 rand today
R50 rand in 1987 R524.17 rand today
R100 rand in 1987 R1,048.35 rand today
R500 rand in 1987 R5,241.74 rand today
R1,000 rand in 1987 R10,483.47 rand today
R5,000 rand in 1987 R52,417.36 rand today
R10,000 rand in 1987 R104,834.72 rand today
R50,000 rand in 1987 R524,173.61 rand today
R100,000 rand in 1987 R1,048,347.22 rand today
R500,000 rand in 1987 R5,241,736.09 rand today
R1,000,000 rand in 1987 R10,483,472.18 rand today

Period Value
1987 100
1988 114.72
1989 129.06
1990 149.06
1991 170.57
1992 198.49
1993 217.36
1994 238.11
1995 261.51
1996 279.62
1997 305.66
1998 324.53
1999 353.58
2000 361.51
2001 386.79
2002 404.53
2003 459.17
2004 451.67
2005 461.6
2006 470.91
2007 493.6
2008 530.95
2009 580.38
2010 616.15
2011 636.71
2012 676.96
2013 716.3
2014 753.86
2015 794.1
2016 835.24
2017 894.26
2018 934.5
2019 975.64
2020 1,014.99
2021 1,046.29
Today 1,048.35