Value of 1978 British Pounds today

£100 in 1978

£494.66 in 2019

The inflation rate in United Kingdom between 1978 and today has been 394.66%, which translates into a total increase of £394.66. This means that 100 pounds in 1978 are equivalent to 494.66 pounds in 2019. In other words, the purchasing power of £100 in 1978 equals £494.66 today. The average annual inflation rate has been 3.88%.

Inflation timeline in United Kingdom (1978-2019)

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 (1978-2019) 393.97%
Total Inflation* 394.66%
Annual inflation avg. (1978-2019) 3.97%
Annual inflation avg.* 3.88%
CPI 1978 21.68
CPI 2019 107.1
CPI today* 107.25
£1 in 1978 £4.94 in 2019

* 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 1978 and 2019 and the average inflation rate has been 3.8798%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.04)41 = £493.97

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 1978 was 21.68 and the CPI today is 107.25. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
107.1/21.68
= £493.97

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1978 £4.95 pounds today
£5 pounds in 1978 £24.73 pounds today
£10 pounds in 1978 £49.47 pounds today
£50 pounds in 1978 £247.33 pounds today
£100 pounds in 1978 £494.66 pounds today
£500 pounds in 1978 £2,473.29 pounds today
£1,000 pounds in 1978 £4,946.58 pounds today
£5,000 pounds in 1978 £24,732.9 pounds today
£10,000 pounds in 1978 £49,465.81 pounds today
£50,000 pounds in 1978 £247,329.05 pounds today
£100,000 pounds in 1978 £494,658.09 pounds today
£500,000 pounds in 1978 £2,473,290.46 pounds today
£1,000,000 pounds in 1978 £4,946,580.92 pounds today

Value of Pound in time (by year)

Period Value
1978 100
1979 108.39
1980 127.07
1981 146.28
1982 163.91
1983 172.77
1984 181.95
1985 190.29
1986 201.03
1987 208.57
1988 216.31
1989 227.38
1990 240.76
1991 262.9
1992 279.96
1993 288.73
1994 295.18
1995 302.1
1996 311.33
1997 320.09
1998 326.09
1999 332.08
2000 337.16
2001 341.31
2002 345.92
2003 351.91
2004 356.53
2005 362.52
2006 370.36
2007 380.97
2008 389.74
2009 401.73
2010 410.03
2011 422.94
2012 438.16
2013 448.77
2014 457.54
2015 460.76
2016 463.07
2017 471.37
2018 484.29
2019 493.97
Today 494.66