Value of 1970 British Pounds today

£100 in 1970

£1,259.68 in 2018

The inflation rate in United Kingdom between 1970 and today has been 1,159.68%, which translates into a total increase of £1,159.68. This means that 100 pounds in 1970 are equivalent to 1,259.68 pounds in 2018. In other words, the purchasing power of £100 in 1970 equals £1,259.68 today. The average annual inflation rate has been 5.31%.

Inflation timeline in United Kingdom (1970-2018)

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 (1970-2018) 1,140.76%
Total Inflation* 1,159.68%
Annual inflation avg. (1970-2018) 5.39%
Annual inflation avg.* 5.31%
CPI 1970 8.46
CPI 2018 105
CPI today* 106.6
£1 in 1970 £12.41 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 48 years between 1970 and 2018 and the average inflation rate has been 5.3063%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.05)48 = £1,240.76

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 1970 was 8.46 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/8.46
= £1,240.76

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1970 £12.6 pounds today
£5 pounds in 1970 £62.98 pounds today
£10 pounds in 1970 £125.97 pounds today
£50 pounds in 1970 £629.84 pounds today
£100 pounds in 1970 £1,259.68 pounds today
£500 pounds in 1970 £6,298.38 pounds today
£1,000 pounds in 1970 £12,596.75 pounds today
£5,000 pounds in 1970 £62,983.77 pounds today
£10,000 pounds in 1970 £125,967.55 pounds today
£50,000 pounds in 1970 £629,837.74 pounds today
£100,000 pounds in 1970 £1,259,675.48 pounds today
£500,000 pounds in 1970 £6,298,377.39 pounds today
£1,000,000 pounds in 1970 £12,596,754.78 pounds today

Value of Pound in time (by year)

Period Value
1970 100
1971 107.89
1972 117.63
1973 126.64
1974 140.03
1975 166.83
1976 208.35
1977 239.75
1978 268.86
1979 291.41
1980 341.64
1981 393.3
1982 440.68
1983 464.52
1984 489.2
1985 511.61
1986 540.49
1987 560.76
1988 581.59
1989 608.02
1990 641.67
1991 689.74
1992 740.2
1993 759.43
1994 777.45
1995 793.08
1996 817.11
1997 835.13
1998 849.55
1999 862.77
2000 872.38
2001 879.59
2002 889.21
2003 903.63
2004 915.64
2005 930.06
2006 948.89
2007 976.07
2008 998.52
2009 1,029.24
2010 1,050.51
2011 1,083.6
2012 1,122.6
2013 1,149.77
2014 1,172.23
2015 1,180.5
2016 1,186.41
2017 1,207.68
2018 1,240.76
Today 1,259.68