Value of 1963 British Pounds today

£5 in 1963

£89.17 in 2021

The inflation rate in United Kingdom between 1963 and today has been 1,683.38%, which translates into a total increase of £84.17. This means that 5 pounds in 1963 are equivalent to 89.17 pounds in 2021. In other words, the purchasing power of £5 in 1963 equals £89.17 today. The average annual inflation rate has been 5%.

Inflation timeline in United Kingdom (1963-2021)

The following chart depicts the equivalence of £5 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 (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. Today's values were obtained by estimating figures from recent trends.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1963-2021) 1,682.31%
Total Inflation* 1,683.38%
Annual inflation avg. (1963-2021) 5.09%
Annual inflation avg.* 5%
CPI 1963 6.14
CPI 2021 109.4
CPI today* 109.47
£1 in 1963 £17.82 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 £5 worth today. There are 58 years between 1963 and 2021 and the average inflation rate has been 5.0044%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £5 * (1 + 0.05)58 = £89.12

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 1963 was 6.14 and the CPI today is 109.47. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £5 *
109.4/6.14
= £89.12

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1963 £17.83 pounds today
£5 pounds in 1963 £89.17 pounds today
£10 pounds in 1963 £178.34 pounds today
£50 pounds in 1963 £891.69 pounds today
£100 pounds in 1963 £1,783.38 pounds today
£500 pounds in 1963 £8,916.91 pounds today
£1,000 pounds in 1963 £17,833.81 pounds today
£5,000 pounds in 1963 £89,169.06 pounds today
£10,000 pounds in 1963 £178,338.11 pounds today
£50,000 pounds in 1963 £891,690.57 pounds today
£100,000 pounds in 1963 £1,783,381.14 pounds today
£500,000 pounds in 1963 £8,916,905.68 pounds today
£1,000,000 pounds in 1963 £17,833,811.36 pounds today

Value of Pound over time (by year)

Period Value
1963 5
1964 5.09
1965 5.34
1966 5.58
1967 5.78
1968 5.92
1969 6.28
1970 6.57
1971 7.09
1972 7.73
1973 8.32
1974 9.2
1975 10.96
1976 13.69
1977 15.75
1978 17.66
1979 19.14
1980 22.44
1981 25.84
1982 28.95
1983 30.51
1984 32.14
1985 33.61
1986 35.5
1987 36.84
1988 38.2
1989 40.16
1990 42.52
1991 46.43
1992 49.45
1993 50.99
1994 52.13
1995 53.36
1996 54.98
1997 56.53
1998 57.59
1999 58.65
2000 59.55
2001 60.28
2002 61.09
2003 62.15
2004 62.97
2005 64.03
2006 65.41
2007 67.28
2008 68.83
2009 70.95
2010 72.42
2011 74.7
2012 77.39
2013 79.26
2014 80.81
2015 81.38
2016 81.78
2017 83.25
2018 85.53
2019 87.24
2020 88.38
2021 89.12
Today 89.17