Value of 1973 British Pounds today

£100 in 1973

£994.71 in 2018

The inflation rate in United Kingdom between 1973 and today has been 894.71%, which translates into a total increase of £894.71. This means that 100 pounds in 1973 are equivalent to 994.71 pounds in 2018. In other words, the purchasing power of £100 in 1973 equals £994.71 today. The average annual inflation rate has been 5.12%.

Inflation timeline in United Kingdom (1973-2018)

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 (1973-2018) 879.78%
Total Inflation* 894.71%
Annual inflation avg. (1973-2018) 5.2%
Annual inflation avg.* 5.12%
CPI 1973 10.72
CPI 2018 105
CPI today* 106.6
£1 in 1973 £9.8 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 45 years between 1973 and 2018 and the average inflation rate has been 5.1209%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.05)45 = £979.78

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 1973 was 10.72 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/10.72
= £979.78

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1973 £9.95 pounds today
£5 pounds in 1973 £49.74 pounds today
£10 pounds in 1973 £99.47 pounds today
£50 pounds in 1973 £497.36 pounds today
£100 pounds in 1973 £994.71 pounds today
£500 pounds in 1973 £4,973.57 pounds today
£1,000 pounds in 1973 £9,947.14 pounds today
£5,000 pounds in 1973 £49,735.72 pounds today
£10,000 pounds in 1973 £99,471.45 pounds today
£50,000 pounds in 1973 £497,357.23 pounds today
£100,000 pounds in 1973 £994,714.47 pounds today
£500,000 pounds in 1973 £4,973,572.33 pounds today
£1,000,000 pounds in 1973 £9,947,144.65 pounds today

Value of Pound in time (by year)

Period Value
1973 100
1974 110.58
1975 131.74
1976 164.53
1977 189.32
1978 212.31
1979 230.11
1980 269.78
1981 310.58
1982 347.99
1983 366.81
1984 386.3
1985 404
1986 426.8
1987 442.81
1988 459.26
1989 480.13
1990 506.7
1991 544.66
1992 584.51
1993 599.69
1994 613.92
1995 626.26
1996 645.24
1997 659.47
1998 670.86
1999 681.29
2000 688.89
2001 694.58
2002 702.17
2003 713.56
2004 723.05
2005 734.43
2006 749.3
2007 770.76
2008 788.49
2009 812.75
2010 829.55
2011 855.67
2012 886.47
2013 907.93
2014 925.66
2015 932.19
2016 936.86
2017 953.65
2018 979.78
Today 994.71