Value of 1972 British Pounds today

£20 in 1972

£228.76 in 2020

The inflation rate in United Kingdom between 1972 and today has been 1,043.82%, which translates into a total increase of £208.76. This means that 20 pounds in 1972 are equivalent to 228.76 pounds in 2020. In other words, the purchasing power of £20 in 1972 equals £228.76 today. The average annual inflation rate has been 5.1%.

Inflation timeline in United Kingdom (1972-2020)

The following chart depicts the equivalence of £20 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 (1972-2020) 1,043.77%
Total Inflation* 1,043.82%
Annual inflation avg. (1972-2020) 5.21%
Annual inflation avg.* 5.1%
CPI 1972 9.49
CPI 2020 108.5
CPI today* 108.5
£1 in 1972 £11.44 in 2020

* 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 with 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 £20 worth today. There are 48 years between 1972 and 2020 and the average inflation rate has been 5.0991%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £20 * (1 + 0.05)48 = £228.75

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 9.49 and the CPI today is 108.5. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £20 *
108.5/9.49
= £228.75

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1972 £11.44 pounds today
£5 pounds in 1972 £57.19 pounds today
£10 pounds in 1972 £114.38 pounds today
£50 pounds in 1972 £571.91 pounds today
£100 pounds in 1972 £1,143.82 pounds today
£500 pounds in 1972 £5,719.08 pounds today
£1,000 pounds in 1972 £11,438.16 pounds today
£5,000 pounds in 1972 £57,190.79 pounds today
£10,000 pounds in 1972 £114,381.57 pounds today
£50,000 pounds in 1972 £571,907.87 pounds today
£100,000 pounds in 1972 £1,143,815.74 pounds today
£500,000 pounds in 1972 £5,719,078.71 pounds today
£1,000,000 pounds in 1972 £11,438,157.42 pounds today

Value of Pound over time (by year)

Period Value
1972 20
1973 21.53
1974 23.81
1975 28.36
1976 35.42
1977 40.76
1978 45.71
1979 49.55
1980 58.09
1981 66.87
1982 74.92
1983 78.98
1984 83.17
1985 86.98
1986 91.89
1987 95.34
1988 98.88
1989 103.94
1990 110.06
1991 120.18
1992 127.98
1993 131.98
1994 134.93
1995 138.1
1996 142.31
1997 146.32
1998 149.06
1999 151.8
2000 154.12
2001 156.02
2002 158.13
2003 160.87
2004 162.97
2005 165.72
2006 169.3
2007 174.15
2008 178.15
2009 183.64
2010 187.43
2011 193.33
2012 200.29
2013 205.14
2014 209.15
2015 210.62
2016 211.68
2017 215.47
2018 221.38
2019 225.8
2020 228.75
Today 228.76