Value of 1971 British Pounds today

£100 in 1971

£1,168.69 in 2018

The inflation rate in United Kingdom between 1971 and today has been 1,068.69%, which translates into a total increase of £1,068.69. This means that 100 pounds in 1971 are equivalent to 1,168.69 pounds in 2018. In other words, the purchasing power of £100 in 1971 equals £1,168.69 today. The average annual inflation rate has been 5.26%.

Inflation timeline in United Kingdom (1971-2018)

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 (1971-2018) 1,050.06%
Total Inflation* 1,068.69%
Annual inflation avg. (1971-2018) 5.33%
Annual inflation avg.* 5.26%
CPI 1971 9.13
CPI 2018 105
CPI today* 106.7
£1 in 1971 £11.5 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 47 years between 1971 and 2018 and the average inflation rate has been 5.2552%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.05)47 = £1,150.06

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 1971 was 9.13 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/9.13
= £1,150.06

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1971 £11.69 pounds today
£5 pounds in 1971 £58.43 pounds today
£10 pounds in 1971 £116.87 pounds today
£50 pounds in 1971 £584.34 pounds today
£100 pounds in 1971 £1,168.69 pounds today
£500 pounds in 1971 £5,843.43 pounds today
£1,000 pounds in 1971 £11,686.85 pounds today
£5,000 pounds in 1971 £58,434.27 pounds today
£10,000 pounds in 1971 £116,868.55 pounds today
£50,000 pounds in 1971 £584,342.73 pounds today
£100,000 pounds in 1971 £1,168,685.45 pounds today
£500,000 pounds in 1971 £5,843,427.27 pounds today
£1,000,000 pounds in 1971 £11,686,854.55 pounds today

Value of Pound in time (by year)

Period Value
1971 100
1972 109.03
1973 117.38
1974 129.79
1975 154.63
1976 193.12
1977 222.22
1978 249.21
1979 270.11
1980 316.67
1981 364.55
1982 408.47
1983 430.56
1984 453.44
1985 474.21
1986 500.98
1987 519.76
1988 539.07
1989 563.58
1990 594.76
1991 639.31
1992 686.09
1993 703.91
1994 720.62
1995 735.1
1996 757.37
1997 774.08
1998 787.45
1999 799.7
2000 808.61
2001 815.29
2002 824.2
2003 837.57
2004 848.71
2005 862.07
2006 879.52
2007 904.71
2008 925.52
2009 954
2010 973.72
2011 1,004.38
2012 1,040.53
2013 1,065.72
2014 1,086.53
2015 1,094.2
2016 1,099.68
2017 1,119.39
2018 1,150.06
Today 1,168.69