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Inflation calculator - British Pound

This tool is useful to calculate the time value of money based on historical inflation and CPI values. To start, select an amount and two years, or browse the default calculation results.

£100 in 1956
£2,141.74 in 2021

The inflation rate in the United Kingdom between 1956 and 2021 was 2,041.74%, which translates into a total increase of £2,041.74. This means that 100 pounds in 1956 are equivalent to 2,141.74 pounds in 2021. In other words, the purchasing power of £100 in 1956 equals £2,141.74 in 2021. The average annual inflation rate between these periods was 4.83%.

Inflation timeline in the United Kingdom (1956 - 2021)

The following chart depicts the equivalence of £100 due to compound 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 (GBP) 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.

The following table contains relevant indicators:

Indicator Value
Cumulative inflation from 1956 to 2021 2,041.74%
Avg. Annual inflation from 1956 to 2021 4.83%
CPI 1956 5.21
CPI 2021 111.6

How to calculate the time value of money with inflation data?

There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the Consumer Price Index (CPI) formula or the compound interest formula.

Using the CPI formula

When we have both the start and end years, we can use the following formula:

Valuet =Value0 ×
CPIt/CPI0

To obtain the values equivalent in buying power between 1956 and 2021, use the corresponding CPI values:

Value2021
=Value1956 ×
CPI2021/CPI1956
=£ 100 ×
111.6/5.21
£2,141.74

Alternative: Using the compound interest formula

Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: 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 £100 worth today. There are 65 years between 1956 and 2021 and the average inflation rate was 4.827%. Therefore, we can resolve the formula like this:

Value2021
=PV × (1 + i)n
=£100 × (1 + 0.04827)65
£2,141.74

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1956 £21.42 pounds in 2021
£5 pounds in 1956 £107.09 pounds in 2021
£10 pounds in 1956 £214.17 pounds in 2021
£50 pounds in 1956 £1,070.87 pounds in 2021
£100 pounds in 1956 £2,141.74 pounds in 2021
£500 pounds in 1956 £10,708.71 pounds in 2021
£1,000 pounds in 1956 £21,417.41 pounds in 2021
£5,000 pounds in 1956 £107,087.05 pounds in 2021
£10,000 pounds in 1956 £214,174.1 pounds in 2021
£50,000 pounds in 1956 £1,070,870.52 pounds in 2021
£100,000 pounds in 1956 £2,141,741.04 pounds in 2021
£500,000 pounds in 1956 £10,708,705.18 pounds in 2021
£1,000,000 pounds in 1956 £21,417,410.36 pounds in 2021
Cumulative inflation 1956-2021 2,041.74%
Avg. annual inflation 1956-2021 4.83%
CPI 1956 5.21
CPI 2021 111.6

Value of Pound over time (by year)

Period Value
1956 100
1957 103.69
1958 106.79
1959 107.42
1960 108.49
1961 112.23
1962 116.94
1963 119.3
1964 123.22
1965 129.1
1966 134.15
1967 137.48
1968 143.94
1969 151.78
1970 161.44
1971 176.69
1972 189.18
1973 206.58
1974 239.72
1975 297.75
1976 347.06
1977 402.03
1978 435.25
1979 493.67
1980 582.36
1981 651.52
1982 707.55
1983 740.16
1984 776.88
1985 824.05
1986 852.29
1987 887.65
1988 925.02
1989 978.75
1990 1,057.44
1991 1,136.12
1992 1,187.94
1993 1,218.64
1994 1,245.51
1995 1,278.14
1996 1,314.6
1997 1,343.39
1998 1,368.33
1999 1,393.28
2000 1,408.64
2001 1,431.67
2002 1,452.78
2003 1,471.97
2004 1,493.08
2005 1,523.78
2006 1,562.17
2007 1,598.63
2008 1,654.28
2009 1,686.91
2010 1,729.13
2011 1,796.3
2012 1,842.36
2013 1,884.58
2014 1,911.45
2015 1,919.12
2016 1,938.31
2017 1,988.21
2018 2,034.27
2019 2,068.81
2020 2,089.92
2021 2,141.74

All available years

Today's value of british pounds by year:

1956 | 1957 | 1958 | 1959 | 1960 | 1961 | 1962 | 1963 | 1964 | 1965 | 1966 | 1967 | 1968 | 1969 | 1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |

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