Value of 1971 British Pounds today

£100 in 1971

£1,231.43 in 2019

The inflation rate in United Kingdom between 1971 and today has been 1,131.43%, which translates into a total increase of £1,131.43. This means that 100 pounds in 1971 are equivalent to 1,231.43 pounds in 2019. In other words, the purchasing power of £100 in 1971 equals £1,231.43 today. The average annual inflation rate has been 5.26%.

Inflation timeline in United Kingdom (1971-2019)

The following chart depicts the equivalence of £100 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 (1971-2019) 1,131.02%
Total Inflation* 1,131.43%
Annual inflation avg. (1971-2019) 5.37%
Annual inflation avg.* 5.26%
CPI 1971 8.7
CPI 2019 107.1
CPI today* 107.14
£1 in 1971 £12.31 in 2019

* 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 1971 and 2019 and the average inflation rate has been 5.2575%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.05)48 = £1,231.02

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 8.7 and the CPI today is 107.14. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
107.1/8.7
= £1,231.02

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1971 £12.31 pounds today
£5 pounds in 1971 £61.57 pounds today
£10 pounds in 1971 £123.14 pounds today
£50 pounds in 1971 £615.71 pounds today
£100 pounds in 1971 £1,231.43 pounds today
£500 pounds in 1971 £6,157.13 pounds today
£1,000 pounds in 1971 £12,314.27 pounds today
£5,000 pounds in 1971 £61,571.34 pounds today
£10,000 pounds in 1971 £123,142.67 pounds today
£50,000 pounds in 1971 £615,713.36 pounds today
£100,000 pounds in 1971 £1,231,426.71 pounds today
£500,000 pounds in 1971 £6,157,133.55 pounds today
£1,000,000 pounds in 1971 £12,314,267.1 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 566.66
1990 599.99
1991 655.16
1992 697.69
1993 719.53
1994 735.62
1995 752.86
1996 775.85
1997 797.69
1998 812.63
1999 827.57
2000 840.22
2001 850.56
2002 862.06
2003 877
2004 888.49
2005 903.43
2006 922.97
2007 949.41
2008 971.25
2009 1,001.13
2010 1,021.82
2011 1,054.01
2012 1,091.94
2013 1,118.37
2014 1,140.21
2015 1,148.26
2016 1,154.01
2017 1,174.7
2018 1,206.88
2019 1,231.02
Today 1,231.43