# Value of 1997 South African Rand today

R100 in 1997

R332.47 in 2020

The inflation rate in South Africa between 1997 and today has been 232.47%, which translates into a total increase of R232.47. This means that 100 rand in 1997 are equivalent to 332.47 rand in 2020. In other words, the purchasing power of R100 in 1997 equals R332.47 today. The average annual inflation rate has been 5.13%.

## Inflation timeline in South Africa (1997-2020)

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 (1997-2020) 232.06%
Total Inflation* 232.47%
Annual inflation avg. (1997-2020) 5.36%
Annual inflation avg.* 5.13%
CPI 1997 37.26
CPI 2020 123.72
CPI today* 123.87
R1 in 1997 R3.32 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 23 years between 1997 and 2020 and the average inflation rate has been 5.1332%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = R100 * (1 + 0.05)23 = R332.06

#### 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 1997 was 37.26 and the CPI today is 123.87. Therefore,

Final value = Initial value *
CPI final/CPI initial
= R100 *
123.72/37.26
= R332.06

### South Africa inflation - Conversion table

Initial Value Equivalent value
R1 rand in 1997 R3.32 rand today
R5 rand in 1997 R16.62 rand today
R10 rand in 1997 R33.25 rand today
R50 rand in 1997 R166.24 rand today
R100 rand in 1997 R332.47 rand today
R500 rand in 1997 R1,662.36 rand today
R1,000 rand in 1997 R3,324.73 rand today
R5,000 rand in 1997 R16,623.64 rand today
R10,000 rand in 1997 R33,247.29 rand today
R50,000 rand in 1997 R166,236.44 rand today
R100,000 rand in 1997 R332,472.89 rand today
R500,000 rand in 1997 R1,662,364.45 rand today
R1,000,000 rand in 1997 R3,324,728.9 rand today

Period Value
1997 100
1998 106.17
1999 115.68
2000 118.27
2001 126.54
2002 132.35
2003 150.22
2004 147.77
2005 151.02
2006 154.06
2007 161.49
2008 173.71
2009 189.88
2010 201.58
2011 208.31
2012 221.47
2013 234.35
2014 246.63
2015 259.8
2016 273.26
2017 292.57
2018 305.73
2019 319.19
2020 332.06
Today 332.47