Value of 1978 British Pounds today

£11 in 1978

£55.11 in 2020

The inflation rate in United Kingdom between 1978 and today has been 400.96%, which translates into a total increase of £44.11. This means that 11 pounds in 1978 are equivalent to 55.11 pounds in 2020. In other words, the purchasing power of £11 in 1978 equals £55.11 today. The average annual inflation rate has been 3.82%.

Inflation timeline in United Kingdom (1978-2020)

The following chart depicts the equivalence of £11 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchasing 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 (1978-2020) 400.43%
Total Inflation* 400.96%
Annual inflation avg. (1978-2020) 3.91%
Annual inflation avg.* 3.82%
CPI 1978 21.68
CPI 2020 108.5
CPI today* 108.61
£1 in 1978 £5 in 2020

* 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 with 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 £11 worth today. There are 42 years between 1978 and 2020 and the average inflation rate has been 3.8184%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £11 * (1 + 0.04)42 = £55.05

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 108.61. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £11 *
108.5/21.68
= £55.05

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1978 £5.01 pounds today
£5 pounds in 1978 £25.05 pounds today
£10 pounds in 1978 £50.1 pounds today
£50 pounds in 1978 £250.48 pounds today
£100 pounds in 1978 £500.96 pounds today
£500 pounds in 1978 £2,504.78 pounds today
£1,000 pounds in 1978 £5,009.56 pounds today
£5,000 pounds in 1978 £25,047.81 pounds today
£10,000 pounds in 1978 £50,095.61 pounds today
£50,000 pounds in 1978 £250,478.06 pounds today
£100,000 pounds in 1978 £500,956.13 pounds today
£500,000 pounds in 1978 £2,504,780.64 pounds today
£1,000,000 pounds in 1978 £5,009,561.29 pounds today

Value of Pound over time (by year)

Period Value
1978 11
1979 11.92
1980 13.98
1981 16.09
1982 18.03
1983 19
1984 20.01
1985 20.93
1986 22.11
1987 22.94
1988 23.79
1989 25.01
1990 26.48
1991 28.92
1992 30.8
1993 31.76
1994 32.47
1995 33.23
1996 34.25
1997 35.21
1998 35.87
1999 36.53
2000 37.09
2001 37.54
2002 38.05
2003 38.71
2004 39.22
2005 39.88
2006 40.74
2007 41.91
2008 42.87
2009 44.19
2010 45.1
2011 46.52
2012 48.2
2013 49.36
2014 50.33
2015 50.68
2016 50.94
2017 51.85
2018 53.27
2019 54.34
2020 55.05
Today 55.11