# \$100 in 1971 is worth \$640.38 today

\$

## Why a dollar today is worth only 16% of a dollar in 1971

Updated: September 11, 2020

According to Statistics Canada consumer price index, today's prices in 2020 are 540.38% higher than average prices since 1971. This means that a dollar today only buys 15.62% of what it could buy in 1971. The Canadian dollar experienced an average inflation rate of 3.86% per year during this period, causing the real value of a dollar to decrease.

In other words, \$100 in 1971 is equivalent in purchasing power to about \$640.38 in 2020, a difference of \$540.38 over 49 years.

The 1971 inflation rate was 4.93%. The current year-over-year inflation rate (2019 to 2020) is now 2.25%1. If this number holds, \$100 today will be equivalent in buying power to \$102.25 next year.

 Cumulative price change 540.38% Average inflation rate 3.86% Converted amount (\$100 base) \$640.38 Price difference (\$100 base) \$540.38 CPI in 1971 21.300 CPI in 2020 136.400 Inflation in 1971 4.93% Inflation in 2020 2.25%

## Buying power of \$100 in 1971

This chart shows a calculation of buying power equivalence for \$100 in 1971 (price index tracking began in 1914).

For example, if you started with \$100, you would need to end with \$640.38 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$100 is equivalent to \$640.38 over time, that means that the "real value" of a single Canadian 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 1971 dollars, the chart below shows how \$100 is worth less over 49 years.

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

Dollar inflation: 1971-2020
Year Dollar Value Inflation Rate
1971 \$100.00 4.93%
1972 \$105.16 5.16%
1973 \$115.02 9.38%
1974 \$129.58 12.65%
1975 \$141.78 9.42%
1976 \$149.77 5.63%
1977 \$163.85 9.40%
1978 \$177.93 8.60%
1979 \$195.31 9.76%
1980 \$216.90 11.06%
1981 \$243.19 12.12%
1982 \$265.73 9.27%
1983 \$277.93 4.59%
1984 \$288.26 3.72%
1985 \$300.94 4.40%
1986 \$313.62 4.21%
1987 \$326.76 4.19%
1988 \$339.44 3.88%
1989 \$357.28 5.26%
1990 \$375.12 4.99%
1991 \$389.20 3.75%
1992 \$397.65 2.17%
1993 \$404.23 1.65%
1994 \$405.16 0.23%
1995 \$412.21 1.74%
1996 \$421.13 2.16%
1997 \$424.41 0.78%
1998 \$428.64 1.00%
1999 \$439.91 2.63%
2000 \$453.99 3.20%
2001 \$457.28 0.72%
2002 \$474.65 3.80%
2003 \$484.51 2.08%
2004 \$494.84 2.13%
2005 \$505.16 2.09%
2006 \$513.62 1.67%
2007 \$525.82 2.38%
2008 \$531.92 1.16%
2009 \$538.97 1.32%
2010 \$551.64 2.35%
2011 \$564.32 2.30%
2012 \$569.01 0.83%
2013 \$576.06 1.24%
2014 \$584.51 1.47%
2015 \$593.90 1.61%
2016 \$602.82 1.50%
2017 \$612.21 1.56%
2018 \$614.08 0.31%
2019 \$626.29 1.99%
2020 \$640.38 2.25%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 43 more rows

This conversion table shows various other 1971 amounts in today's dollars, based on the 540.38% change in prices:

Conversion Table: Value of a dollar today
Initial value Equivalent value
\$1 dollar in 1971 \$6.40 dollars today
\$5 dollars in 1971 \$32.02 dollars today
\$10 dollars in 1971 \$64.04 dollars today
\$50 dollars in 1971 \$320.19 dollars today
\$100 dollars in 1971 \$640.38 dollars today
\$500 dollars in 1971 \$3,201.88 dollars today
\$1,000 dollars in 1971 \$6,403.76 dollars today
\$5,000 dollars in 1971 \$32,018.78 dollars today
\$10,000 dollars in 1971 \$64,037.56 dollars today
\$50,000 dollars in 1971 \$320,187.79 dollars today
\$100,000 dollars in 1971 \$640,375.59 dollars today
\$500,000 dollars in 1971 \$3,201,877.93 dollars today
\$1,000,000 dollars in 1971 \$6,403,755.87 dollars today

## How to Calculate Inflation Rate for \$100 since 1971

Our calculations use the following inflation rate formula to calculate the change in value between 1971 and today:

CPI today CPI in 1971
×
=
Today's value

Then plug in historical CPI values. The Canadian CPI was 21.3 in the year 1971 and 136.4 in 2020:

136.421.3
×
\$100
=
\$640.38

\$100 in 1971 has the same "purchasing power" or "buying power" as \$640.38 in 2020.

To get the total inflation rate for the 49 years between 1971 and 2020, we use the following formula:

CPI in 2020 - CPI in 1971CPI in 1971
×
100
=
Cumulative inflation rate (49 years)

Plugging in the values to this equation, we get:

136.4 - 21.321.3
×
100
=
540%

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

• Idi Amin declares himself president of Uganda.
• The Nasdaq Composite stock market index debuts with fifty companies and a starting value of 100.
• Indian troops, aided by Bengali guerrillas under Mukti Bahini, are victorious over the Pakistan army, in the battle of Garibpur.

## Data Source & Citation

Raw data for these calculations comes from the government of Canada's annual Consumer Price Index (CPI), established in 1914 and computed by Statistics Canada (StatCan).

You may use the following MLA citation for this page: “Value of 1971 dollars today | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 26 Sep. 2020, https://www.officialdata.org/canada/inflation/1971?amount=&startYear=&future_pct=.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

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