Value of 1965 British Pounds today

£100 in 1965

£1,550.37 in 2018

The inflation rate in United Kingdom between 1965 and today has been 1,450.37%, which translates into a total increase of £1,450.37. This means that 100 pounds in 1965 are equivalent to 1,550.37 pounds in 2018. In other words, the purchasing power of £100 in 1965 equals £1,550.37 today. The average annual inflation rate has been 5.21%.

Inflation timeline in United Kingdom (1965-2018)

The following chart ilustrates the equivalence of £100 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchashing 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 (1965-2018) 1,427.09%
Total Inflation* 1,450.37%
Annual inflation avg. (1965-2018) 5.28%
Annual inflation avg.* 5.21%
CPI 1965 6.88
CPI 2018 105
CPI today* 106.6
£1 in 1965 £15.27 in 2018

* 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 in 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 £100 worth today. There are 53 years between 1965 and 2018 and the average inflation rate has been 5.2071%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.05)53 = £1,527.09

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 1965 was 6.88 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/6.88
= £1,527.09

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1965 £15.5 pounds today
£5 pounds in 1965 £77.52 pounds today
£10 pounds in 1965 £155.04 pounds today
£50 pounds in 1965 £775.18 pounds today
£100 pounds in 1965 £1,550.37 pounds today
£500 pounds in 1965 £7,751.85 pounds today
£1,000 pounds in 1965 £15,503.7 pounds today
£5,000 pounds in 1965 £77,518.49 pounds today
£10,000 pounds in 1965 £155,036.98 pounds today
£50,000 pounds in 1965 £775,184.9 pounds today
£100,000 pounds in 1965 £1,550,369.79 pounds today
£500,000 pounds in 1965 £7,751,848.95 pounds today
£1,000,000 pounds in 1965 £15,503,697.91 pounds today

Value of Pound in time (by year)

Period Value
1965 100
1966 104.49
1967 108.33
1968 110.99
1969 117.58
1970 123.08
1971 132.78
1972 144.78
1973 155.86
1974 172.34
1975 205.32
1976 256.44
1977 295.08
1978 330.91
1979 358.66
1980 420.48
1981 484.07
1982 542.38
1983 571.71
1984 602.1
1985 629.67
1986 665.22
1987 690.16
1988 715.8
1989 748.34
1990 789.75
1991 848.91
1992 911.02
1993 934.68
1994 956.87
1995 976.09
1996 1,005.67
1997 1,027.86
1998 1,045.6
1999 1,061.87
2000 1,073.7
2001 1,082.58
2002 1,094.41
2003 1,112.15
2004 1,126.94
2005 1,144.69
2006 1,167.86
2007 1,201.31
2008 1,228.95
2009 1,266.76
2010 1,292.94
2011 1,333.66
2012 1,381.66
2013 1,415.11
2014 1,442.74
2015 1,452.92
2016 1,460.19
2017 1,486.37
2018 1,527.09
Today 1,550.37