Value of 1977 British Pounds today

£100 in 1977

£525.41 in 2018

The inflation rate in United Kingdom between 1977 and today has been 425.41%, which translates into a total increase of £425.41. This means that 100 pounds in 1977 are equivalent to 525.41 pounds in 2018. In other words, the purchasing power of £100 in 1977 equals £525.41 today. The average annual inflation rate has been 4.03%.

Inflation timeline in United Kingdom (1977-2018)

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 (1977-2018) 417.52%
Total Inflation* 425.41%
Annual inflation avg. (1977-2018) 4.09%
Annual inflation avg.* 4.03%
CPI 1977 20.29
CPI 2018 105
CPI today* 106.6
£1 in 1977 £5.18 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 41 years between 1977 and 2018 and the average inflation rate has been 4.0291%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.04)41 = £517.52

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 1977 was 20.29 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/20.29
= £517.52

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1977 £5.25 pounds today
£5 pounds in 1977 £26.27 pounds today
£10 pounds in 1977 £52.54 pounds today
£50 pounds in 1977 £262.71 pounds today
£100 pounds in 1977 £525.41 pounds today
£500 pounds in 1977 £2,627.06 pounds today
£1,000 pounds in 1977 £5,254.12 pounds today
£5,000 pounds in 1977 £26,270.6 pounds today
£10,000 pounds in 1977 £52,541.2 pounds today
£50,000 pounds in 1977 £262,705.98 pounds today
£100,000 pounds in 1977 £525,411.96 pounds today
£500,000 pounds in 1977 £2,627,059.82 pounds today
£1,000,000 pounds in 1977 £5,254,119.64 pounds today

Value of Pound in time (by year)

Period Value
1977 100
1978 112.14
1979 121.55
1980 142.5
1981 164.05
1982 183.81
1983 193.75
1984 204.05
1985 213.39
1986 225.44
1987 233.89
1988 242.58
1989 253.61
1990 267.64
1991 287.69
1992 308.74
1993 316.76
1994 324.28
1995 330.79
1996 340.82
1997 348.33
1998 354.35
1999 359.86
2000 363.87
2001 366.88
2002 370.89
2003 376.9
2004 381.92
2005 387.93
2006 395.78
2007 407.12
2008 416.48
2009 429.3
2010 438.17
2011 451.97
2012 468.24
2013 479.57
2014 488.94
2015 492.39
2016 494.85
2017 503.72
2018 517.52
Today 525.41