Value of 1980 British Pounds today

£100 in 1980

£368.71 in 2018

The inflation rate in United Kingdom between 1980 and today has been 268.71%, which translates into a total increase of £268.71. This means that 100 pounds in 1980 are equivalent to 368.71 pounds in 2018. In other words, the purchasing power of £100 in 1980 equals £368.71 today. The average annual inflation rate has been 3.4%.

Inflation timeline in United Kingdom (1980-2018)

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 (1980-2018) 263.17%
Total Inflation* 268.71%
Annual inflation avg. (1980-2018) 3.45%
Annual inflation avg.* 3.4%
CPI 1980 28.91
CPI 2018 105
CPI today* 106.6
£1 in 1980 £3.63 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 38 years between 1980 and 2018 and the average inflation rate has been 3.4023%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.03)38 = £363.17

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 1980 was 28.91 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/28.91
= £363.17

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1980 £3.69 pounds today
£5 pounds in 1980 £18.44 pounds today
£10 pounds in 1980 £36.87 pounds today
£50 pounds in 1980 £184.36 pounds today
£100 pounds in 1980 £368.71 pounds today
£500 pounds in 1980 £1,843.55 pounds today
£1,000 pounds in 1980 £3,687.1 pounds today
£5,000 pounds in 1980 £18,435.51 pounds today
£10,000 pounds in 1980 £36,871.02 pounds today
£50,000 pounds in 1980 £184,355.11 pounds today
£100,000 pounds in 1980 £368,710.22 pounds today
£500,000 pounds in 1980 £1,843,551.09 pounds today
£1,000,000 pounds in 1980 £3,687,102.17 pounds today

Value of Pound in time (by year)

Period Value
1980 100
1981 115.12
1982 128.99
1983 135.96
1984 143.19
1985 149.75
1986 158.2
1987 164.14
1988 170.23
1989 177.97
1990 187.82
1991 201.89
1992 216.66
1993 222.29
1994 227.56
1995 232.14
1996 239.17
1997 244.45
1998 248.67
1999 252.53
2000 255.35
2001 257.46
2002 260.27
2003 264.49
2004 268.01
2005 272.23
2006 277.74
2007 285.7
2008 292.27
2009 301.26
2010 307.49
2011 317.17
2012 328.59
2013 336.54
2014 343.11
2015 345.53
2016 347.26
2017 353.49
2018 363.17
Today 368.71