# \$5,000,000 in 1975 → \$36,537,327.69 in 2020

## Australia Inflation Calculator

\$

### Australian Inflation Rate, \$5,000,000 from 1975 to 2020

According to the Bureau of Statistics consumer price index, today's prices in 2020 are 630.75% higher than average prices since 1975. The Australian dollar experienced an average inflation rate of 4.52% per year during this period, meaning the real value of a dollar decreased.

In other words, \$5,000,000 in 1975 is equivalent in purchasing power to about \$36,537,327.69 in 2020, a difference of \$31,537,327.69 over 45 years.

The 1975 inflation rate was 15.11%. The current inflation rate (2019 to 2020) is now 1.90%1. If this number holds, \$5,000,000 today will be equivalent in buying power to \$5,095,000.00 next year.

 Cumulative price change 630.75% Average inflation rate 4.52% Converted amount (\$5,000,000 base) \$36,537,327.69 Price difference (\$5,000,000 base) \$31,537,327.69 CPI in 1975 16.000 CPI in 2020 116.919 Inflation in 1975 15.11% Inflation in 2020 1.90%

AUD Inflation since 1922
Annual Rate, the Bureau of Statistics CPI

### Buying power of \$5,000,000 in 1975

This chart shows a calculation of buying power equivalence for \$5,000,000 in 1975 (price index tracking began in 1922).

For example, if you started with \$5,000,000, you would need to end with \$36,537,327.69 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$5,000,000 is equivalent to \$36,537,327.69 over time, that means that the "real value" of a single Australian dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1975 dollars, the chart below shows how \$5,000,000 buys less over the past 45 years.

According to the Bureau of Statistics, each of these AUD amounts below is equal in terms of what it could buy at the time:

Year Dollar Value Inflation Rate
1975 \$5,000,000.00 15.11%
1976 \$5,656,250.00 13.13%
1977 \$6,343,750.00 12.15%
1978 \$6,843,750.00 7.88%
1979 \$7,468,750.00 9.13%
1980 \$8,250,000.00 10.46%
1981 \$9,031,250.00 9.47%
1982 \$10,031,250.00 11.07%
1983 \$11,062,500.00 10.28%
1984 \$11,500,000.00 3.95%
1985 \$12,250,000.00 6.52%
1986 \$13,375,000.00 9.18%
1987 \$14,500,000.00 8.41%
1988 \$15,562,500.00 7.33%
1989 \$16,718,750.00 7.43%
1990 \$17,968,750.00 7.48%
1991 \$18,531,250.00 3.13%
1992 \$18,718,750.00 1.01%
1993 \$19,031,250.00 1.67%
1994 \$19,406,250.00 1.97%
1995 \$20,312,500.00 4.67%
1996 \$20,843,750.00 2.62%
1997 \$20,906,250.00 0.30%
1998 \$21,062,500.00 0.75%
1999 \$21,375,000.00 1.48%
2000 \$22,343,750.00 4.53%
2001 \$23,312,500.00 4.34%
2002 \$24,031,250.00 3.08%
2003 \$24,687,500.00 2.73%
2004 \$25,250,000.00 2.28%
2005 \$25,937,500.00 2.72%
2006 \$26,843,750.00 3.49%
2007 \$27,468,750.00 2.33%
2008 \$28,687,500.00 4.44%
2009 \$29,187,500.00 1.74%
2010 \$30,031,250.00 2.89%
2011 \$31,031,250.00 3.33%
2012 \$31,562,500.00 1.71%
2013 \$32,343,750.00 2.48%
2014 \$33,156,250.00 2.51%
2015 \$33,656,250.00 1.51%
2016 \$34,093,750.00 1.30%
2017 \$34,750,000.00 1.92%
2018 \$35,187,500.00 1.26%
2019 \$35,856,062.50 1.90%
2020 \$36,537,327.69 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 39 more rows

### How to Calculate Inflation Rate for \$5,000,000 since 1975

This inflation calculator uses the following inflation rate formula:

CPI in 2020CPI in 1975
×
1975 AUD value
=
2020 AUD value

Then plug in historical CPI values. The Australian CPI was 16 in the year 1975 and 116.91944859999998 in 2020:

116.9194485999999816
×
\$5,000,000
=
\$36,537,327.69

\$5,000,000 in 1975 has the same "purchasing power" or "buying power" as \$36,537,327.69 in 2020.

To get the total inflation rate for the 45 years between 1975 and 2020, we use the following formula:

CPI in 2020 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (45 years)

Plugging in the values to this equation, we get:

116.91944859999998 - 1616
×
100
=
631%

### News headlines from 1975

Politics and news often influence economic performance. Here's what was happening at the time:

• Margaret Thatcher becomes leader of the British Conservative Party, after defeating Edward Heath.
• Ethiopia abrogates its 3,000-year-old monarchy.
• Bill Gates and Paul Allen found Microsoft.
• The US signals the beginning of the end of its involvement Vietnam, after it begins to evacuate its citizens from Saigon.
• Gough Whitlam is removed by Governor General Sir John Kerr: the first time an elected Prime Minister had been deposed in 200 years (Australia).

### Data Source & Citation

Raw data for these calculations comes from the government of Australia's annual (CPI) as provided by the Reserve Bank of Australia. The consumer price index was established in 1922 and is tracked by Australian Bureau of Statistics (ABS).

You may use the following MLA citation for this page: “\$5,000,000 in 1975 → 2020 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 20 Feb. 2020, https://www.officialdata.org/australia/inflation/1975?amount=5000000.

Special thanks to QuickChart for providing downloadable chart images.

in2013dollars.com is a reference website maintained by the Official Data Foundation.

#### About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

 Cumulative price change 630.75% Average inflation rate 4.52% Converted amount (\$5,000,000 base) \$36,537,327.69 Price difference (\$5,000,000 base) \$31,537,327.69 CPI in 1975 16.000 CPI in 2020 116.919 Inflation in 1975 15.11% Inflation in 2020 1.90%