Value of 1972 British Pounds today

£100 in 1972

£1,071.85 in 2018

The inflation rate in United Kingdom between 1972 and today has been 971.85%, which translates into a total increase of £971.85. This means that 100 pounds in 1972 are equivalent to 1,071.85 pounds in 2018. In other words, the purchasing power of £100 in 1972 equals £1,071.85 today. The average annual inflation rate has been 5.18%.

Inflation timeline in United Kingdom (1972-2018)

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 (1972-2018) 954.77%
Total Inflation* 971.85%
Annual inflation avg. (1972-2018) 5.25%
Annual inflation avg.* 5.18%
CPI 1972 9.95
CPI 2018 105
CPI today* 106.7
£1 in 1972 £10.55 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 46 years between 1972 and 2018 and the average inflation rate has been 5.1763%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.05)46 = £1,054.77

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 1972 was 9.95 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/9.95
= £1,054.77

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1972 £10.72 pounds today
£5 pounds in 1972 £53.59 pounds today
£10 pounds in 1972 £107.18 pounds today
£50 pounds in 1972 £535.92 pounds today
£100 pounds in 1972 £1,071.85 pounds today
£500 pounds in 1972 £5,359.25 pounds today
£1,000 pounds in 1972 £10,718.49 pounds today
£5,000 pounds in 1972 £53,592.47 pounds today
£10,000 pounds in 1972 £107,184.94 pounds today
£50,000 pounds in 1972 £535,924.71 pounds today
£100,000 pounds in 1972 £1,071,849.43 pounds today
£500,000 pounds in 1972 £5,359,247.13 pounds today
£1,000,000 pounds in 1972 £10,718,494.27 pounds today

Value of Pound in time (by year)

Period Value
1972 100
1973 107.65
1974 119.04
1975 141.82
1976 177.12
1977 203.81
1978 228.56
1979 247.73
1980 290.43
1981 334.35
1982 374.62
1983 394.88
1984 415.87
1985 434.92
1986 459.47
1987 476.7
1988 494.41
1989 516.88
1990 545.48
1991 586.34
1992 629.24
1993 645.59
1994 660.91
1995 674.19
1996 694.62
1997 709.94
1998 722.2
1999 733.44
2000 741.61
2001 747.74
2002 755.91
2003 768.17
2004 778.38
2005 790.64
2006 806.65
2007 829.75
2008 848.84
2009 874.95
2010 893.04
2011 921.16
2012 954.31
2013 977.42
2014 996.5
2015 1,003.53
2016 1,008.56
2017 1,026.64
2018 1,054.77
Today 1,071.85