# Value of 2004 South African Rand today

R100 in 2004

R232.11 in 2021

The inflation rate in South Africa between 2004 and today has been 132.11%, which translates into a total increase of R132.11. This means that 100 rand in 2004 are equivalent to 232.11 rand in 2021. In other words, the purchasing power of R100 in 2004 equals R232.11 today. The average annual inflation rate has been 4.79%.

## Inflation timeline in South Africa (2004-2021)

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 (2004-2021) 131.65%
Total Inflation* 132.11%
Annual inflation avg. (2004-2021) 5.07%
Annual inflation avg.* 4.79%
CPI 2004 55.05
CPI 2021 127.53
CPI today* 127.78
R1 in 2004 R2.32 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 17 years between 2004 and 2021 and the average inflation rate has been 4.789%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = R100 * (1 + 0.05)17 = R231.65

#### 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 2004 was 55.05 and the CPI today is 127.78. Therefore,

Final value = Initial value *
CPI final/CPI initial
= R100 *
127.53/55.05
= R231.65

### South Africa inflation - Conversion table

Initial Value Equivalent value
R1 rand in 2004 R2.32 rand today
R5 rand in 2004 R11.61 rand today
R10 rand in 2004 R23.21 rand today
R50 rand in 2004 R116.05 rand today
R100 rand in 2004 R232.11 rand today
R500 rand in 2004 R1,160.53 rand today
R1,000 rand in 2004 R2,321.05 rand today
R5,000 rand in 2004 R11,605.27 rand today
R10,000 rand in 2004 R23,210.55 rand today
R50,000 rand in 2004 R116,052.73 rand today
R100,000 rand in 2004 R232,105.47 rand today
R500,000 rand in 2004 R1,160,527.35 rand today
R1,000,000 rand in 2004 R2,321,054.69 rand today

Period Value
2004 100
2005 102.2
2006 104.26
2007 109.28
2008 117.55
2009 128.5
2010 136.42
2011 140.97
2012 149.88
2013 158.59
2014 166.91
2015 175.82
2016 184.92
2017 197.99
2018 206.9
2019 216.01
2020 224.72
2021 231.65
Today 232.11