Value of 1974 British Pounds today

£100 in 1974

£899.58 in 2018

The inflation rate in United Kingdom between 1974 and today has been 799.58%, which translates into a total increase of £799.58. This means that 100 pounds in 1974 are equivalent to 899.58 pounds in 2018. In other words, the purchasing power of £100 in 1974 equals £899.58 today. The average annual inflation rate has been 5%.

Inflation timeline in United Kingdom (1974-2018)

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 (1974-2018) 786.07%
Total Inflation* 799.58%
Annual inflation avg. (1974-2018) 5.08%
Annual inflation avg.* 5%
CPI 1974 11.85
CPI 2018 105
CPI today* 106.6
£1 in 1974 £8.86 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 44 years between 1974 and 2018 and the average inflation rate has been 5.0028%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.05)44 = £886.07

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 1974 was 11.85 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/11.85
= £886.07

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1974 £9 pounds today
£5 pounds in 1974 £44.98 pounds today
£10 pounds in 1974 £89.96 pounds today
£50 pounds in 1974 £449.79 pounds today
£100 pounds in 1974 £899.58 pounds today
£500 pounds in 1974 £4,497.88 pounds today
£1,000 pounds in 1974 £8,995.77 pounds today
£5,000 pounds in 1974 £44,978.83 pounds today
£10,000 pounds in 1974 £89,957.67 pounds today
£50,000 pounds in 1974 £449,788.34 pounds today
£100,000 pounds in 1974 £899,576.67 pounds today
£500,000 pounds in 1974 £4,497,883.37 pounds today
£1,000,000 pounds in 1974 £8,995,766.74 pounds today

Value of Pound in time (by year)

Period Value
1974 100
1975 119.14
1976 148.79
1977 171.21
1978 192
1979 208.11
1980 243.98
1981 280.87
1982 314.71
1983 331.73
1984 349.36
1985 365.36
1986 385.98
1987 400.46
1988 415.33
1989 434.21
1990 458.24
1991 492.56
1992 528.6
1993 542.33
1994 555.21
1995 566.36
1996 583.52
1997 596.4
1998 606.69
1999 616.13
2000 623
2001 628.15
2002 635.01
2003 645.31
2004 653.89
2005 664.19
2006 677.63
2007 697.04
2008 713.08
2009 735.02
2010 750.21
2011 773.84
2012 801.68
2013 821.09
2014 837.13
2015 843.03
2016 847.25
2017 862.44
2018 886.07
Today 899.58