Value of 1981 British Pounds today

£100 in 1981

£320.58 in 2018

The inflation rate in United Kingdom between 1981 and today has been 220.58%, which translates into a total increase of £220.58. This means that 100 pounds in 1981 are equivalent to 320.58 pounds in 2018. In other words, the purchasing power of £100 in 1981 equals £320.58 today. The average annual inflation rate has been 3.11%.

Inflation timeline in United Kingdom (1981-2018)

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 (1981-2018) 215.47%
Total Inflation* 220.58%
Annual inflation avg. (1981-2018) 3.15%
Annual inflation avg.* 3.11%
CPI 1981 33.28
CPI 2018 105
CPI today* 106.7
£1 in 1981 £3.15 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 37 years between 1981 and 2018 and the average inflation rate has been 3.1132%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.03)37 = £315.47

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 1981 was 33.28 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/33.28
= £315.47

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1981 £3.21 pounds today
£5 pounds in 1981 £16.03 pounds today
£10 pounds in 1981 £32.06 pounds today
£50 pounds in 1981 £160.29 pounds today
£100 pounds in 1981 £320.58 pounds today
£500 pounds in 1981 £1,602.91 pounds today
£1,000 pounds in 1981 £3,205.81 pounds today
£5,000 pounds in 1981 £16,029.05 pounds today
£10,000 pounds in 1981 £32,058.1 pounds today
£50,000 pounds in 1981 £160,290.51 pounds today
£100,000 pounds in 1981 £320,581.02 pounds today
£500,000 pounds in 1981 £1,602,905.11 pounds today
£1,000,000 pounds in 1981 £3,205,810.23 pounds today

Value of Pound in time (by year)

Period Value
1981 100
1982 112.05
1983 118.11
1984 124.38
1985 130.08
1986 137.42
1987 142.58
1988 147.87
1989 154.59
1990 163.15
1991 175.37
1992 188.2
1993 193.09
1994 197.67
1995 201.64
1996 207.75
1997 212.34
1998 216
1999 219.36
2000 221.81
2001 223.64
2002 226.09
2003 229.75
2004 232.81
2005 236.47
2006 241.26
2007 248.17
2008 253.88
2009 261.69
2010 267.1
2011 275.51
2012 285.43
2013 292.34
2014 298.05
2015 300.15
2016 301.65
2017 307.06
2018 315.47
Today 320.58