Value of 1978 British Pounds today

£100 in 1978

£468.52 in 2018

The inflation rate in United Kingdom between 1978 and today has been 368.52%, which translates into a total increase of £368.52. This means that 100 pounds in 1978 are equivalent to 468.52 pounds in 2018. In other words, the purchasing power of £100 in 1978 equals £468.52 today. The average annual inflation rate has been 3.84%.

Inflation timeline in United Kingdom (1978-2018)

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 (1978-2018) 361.49%
Total Inflation* 368.52%
Annual inflation avg. (1978-2018) 3.9%
Annual inflation avg.* 3.84%
CPI 1978 22.75
CPI 2018 105
CPI today* 106.6
£1 in 1978 £4.61 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 40 years between 1978 and 2018 and the average inflation rate has been 3.8387%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.04)40 = £461.49

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 22.75 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/22.75
= £461.49

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1978 £4.69 pounds today
£5 pounds in 1978 £23.43 pounds today
£10 pounds in 1978 £46.85 pounds today
£50 pounds in 1978 £234.26 pounds today
£100 pounds in 1978 £468.52 pounds today
£500 pounds in 1978 £2,342.6 pounds today
£1,000 pounds in 1978 £4,685.2 pounds today
£5,000 pounds in 1978 £23,426.02 pounds today
£10,000 pounds in 1978 £46,852.03 pounds today
£50,000 pounds in 1978 £234,260.17 pounds today
£100,000 pounds in 1978 £468,520.34 pounds today
£500,000 pounds in 1978 £2,342,601.71 pounds today
£1,000,000 pounds in 1978 £4,685,203.42 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 226.15
1990 238.66
1991 256.54
1992 275.31
1993 282.46
1994 289.16
1995 294.97
1996 303.91
1997 310.62
1998 315.98
1999 320.9
2000 324.47
2001 327.15
2002 330.73
2003 336.09
2004 340.56
2005 345.92
2006 352.93
2007 363.04
2008 371.39
2009 382.81
2010 390.72
2011 403.03
2012 417.54
2013 427.64
2014 435.99
2015 439.07
2016 441.27
2017 449.18
2018 461.49
Today 468.52