# Value of 1988 South African Rand today

R100 in 1988

R885.77 in 2020

The inflation rate in South Africa between 1988 and today has been 785.77%, which translates into a total increase of R785.77. This means that 100 rand in 1988 are equivalent to 885.77 rand in 2020. In other words, the purchasing power of R100 in 1988 equals R885.77 today. The average annual inflation rate has been 6.83%.

## Inflation timeline in South Africa (1988-2020)

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 (1988-2020) 784.77%
Total Inflation* 785.77%
Annual inflation avg. (1988-2020) 7.05%
Annual inflation avg.* 6.83%
CPI 1988 13.98
CPI 2020 123.72
CPI today* 123.86
R1 in 1988 R8.85 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 32 years between 1988 and 2020 and the average inflation rate has been 6.8333%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = R100 * (1 + 0.07)32 = R884.77

#### 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 1988 was 13.98 and the CPI today is 123.86. Therefore,

Final value = Initial value *
CPI final/CPI initial
= R100 *
123.72/13.98
= R884.77

### South Africa inflation - Conversion table

Initial Value Equivalent value
R1 rand in 1988 R8.86 rand today
R5 rand in 1988 R44.29 rand today
R10 rand in 1988 R88.58 rand today
R50 rand in 1988 R442.88 rand today
R100 rand in 1988 R885.77 rand today
R500 rand in 1988 R4,428.83 rand today
R1,000 rand in 1988 R8,857.66 rand today
R5,000 rand in 1988 R44,288.3 rand today
R10,000 rand in 1988 R88,576.6 rand today
R50,000 rand in 1988 R442,883 rand today
R100,000 rand in 1988 R885,766.01 rand today
R500,000 rand in 1988 R4,428,830.04 rand today
R1,000,000 rand in 1988 R8,857,660.08 rand today

Period Value
1988 100
1989 112.5
1990 129.93
1991 148.68
1992 173.03
1993 189.47
1994 207.57
1995 227.96
1996 243.75
1997 266.45
1998 282.89
1999 308.22
2000 315.13
2001 337.17
2002 352.63
2003 400.27
2004 393.72
2005 402.38
2006 410.5
2007 430.27
2008 462.84
2009 505.92
2010 537.1
2011 555.03
2012 590.11
2013 624.41
2014 657.15
2015 692.23
2016 728.09
2017 779.54
2018 814.62
2019 850.48
2020 884.77
Today 885.77