Value of 1975 British Pounds today

£100 in 1975

£755.79 in 2018

The inflation rate in United Kingdom between 1975 and today has been 655.79%, which translates into a total increase of £655.79. This means that 100 pounds in 1975 are equivalent to 755.79 pounds in 2018. In other words, the purchasing power of £100 in 1975 equals £755.79 today. The average annual inflation rate has been 4.7%.

Inflation timeline in United Kingdom (1975-2018)

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 (1975-2018) 643.75%
Total Inflation* 655.79%
Annual inflation avg. (1975-2018) 4.78%
Annual inflation avg.* 4.7%
CPI 1975 14.12
CPI 2018 105
CPI today* 106.7
£1 in 1975 £7.44 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 43 years between 1975 and 2018 and the average inflation rate has been 4.7041%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.05)43 = £743.75

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 1975 was 14.12 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/14.12
= £743.75

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1975 £7.56 pounds today
£5 pounds in 1975 £37.79 pounds today
£10 pounds in 1975 £75.58 pounds today
£50 pounds in 1975 £377.9 pounds today
£100 pounds in 1975 £755.79 pounds today
£500 pounds in 1975 £3,778.96 pounds today
£1,000 pounds in 1975 £7,557.92 pounds today
£5,000 pounds in 1975 £37,789.62 pounds today
£10,000 pounds in 1975 £75,579.24 pounds today
£50,000 pounds in 1975 £377,896.22 pounds today
£100,000 pounds in 1975 £755,792.44 pounds today
£500,000 pounds in 1975 £3,778,962.19 pounds today
£1,000,000 pounds in 1975 £7,557,924.38 pounds today

Value of Pound in time (by year)

Period Value
1975 100
1976 124.89
1977 143.71
1978 161.16
1979 174.68
1980 204.79
1981 235.76
1982 264.16
1983 278.44
1984 293.24
1985 306.67
1986 323.98
1987 336.13
1988 348.62
1989 364.47
1990 384.63
1991 413.45
1992 443.7
1993 455.22
1994 466.03
1995 475.39
1996 489.8
1997 500.6
1998 509.24
1999 517.17
2000 522.93
2001 527.25
2002 533.01
2003 541.66
2004 548.86
2005 557.5
2006 568.79
2007 585.08
2008 598.54
2009 616.96
2010 629.71
2011 649.54
2012 672.91
2013 689.21
2014 702.66
2015 707.62
2016 711.16
2017 723.91
2018 743.75
Today 755.79