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Value of 1981 British Pounds today

£20 in 1981
£77.68 in 2024

The inflation rate in the United Kingdom between 1981 and today has been 288.41%, which translates into a total increase of £57.68. This means that 20 pounds in 1981 are equivalent to 77.68 pounds in 2024. In other words, the purchasing power of £20 in 1981 equals £77.68 today. The average annual inflation rate between these periods has been 3.21%.

Inflation timeline in the United Kingdom (1981 - 2024)

The following chart depicts the equivalence of £20 due to compound 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 extrapolated from the latest 12-month rolling average official data.

The following table contains relevant indicators:

Indicator Value
Cumulative inflation 1981-2023 278.8%
Cumulative inflation 1981-today 288.41%
Avg. Annual inflation 1981-2023 3.22%
CPI 1981 33.95
CPI 2023 128.6
CPI 2024-03 (latest official data) 131.6
CPI today 131.86

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 Consumer Price Index (CPI) formula or the compound interest formula.

Using the CPI formula

When we have both the start and end years, we can use the following formula:

Valuet =Value0 ×
CPIt/CPI0

To obtain the values equivalent in buying power between 1981 and 2023, use the corresponding CPI values:

Value2023
=Value1981 ×
CPI2023/CPI1981
=£ 20 ×
128.6/33.95
£75.76

To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 131.86:

Valuetoday
=Value1981 ×
CPItoday/CPI1981
=£ 20 ×
131.86/33.95
£77.68

Alternative: Using the compound interest formula

Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: 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 £20 worth today. There are 42 years between 1981 and 2023 and the average inflation rate was 3.2219%. Therefore, we can resolve the formula like this:

Value2023
=PV × (1 + i)n
=£20 × (1 + 0.032219)42
£75.76

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1981 £3.79 pounds in 2023
£5 pounds in 1981 £18.94 pounds in 2023
£10 pounds in 1981 £37.88 pounds in 2023
£50 pounds in 1981 £189.4 pounds in 2023
£100 pounds in 1981 £378.8 pounds in 2023
£500 pounds in 1981 £1,894.01 pounds in 2023
£1,000 pounds in 1981 £3,788.02 pounds in 2023
£5,000 pounds in 1981 £18,940.12 pounds in 2023
£10,000 pounds in 1981 £37,880.24 pounds in 2023
£50,000 pounds in 1981 £189,401.19 pounds in 2023
£100,000 pounds in 1981 £378,802.38 pounds in 2023
£500,000 pounds in 1981 £1,894,011.92 pounds in 2023
£1,000,000 pounds in 1981 £3,788,023.84 pounds in 2023
Cumulative inflation From 1981 288.41%
Avg. annual inflation From 1981 3.21%
CPI 1981 33.95
CPI today 131.86

Value of Pound over time (by year)

Period Value
1981 20
1982 21.72
1983 22.72
1984 23.85
1985 25.3
1986 26.16
1987 27.25
1988 28.4
1989 30.04
1990 32.46
1991 34.88
1992 36.47
1993 37.41
1994 38.23
1995 39.24
1996 40.35
1997 41.24
1998 42
1999 42.77
2000 43.24
2001 43.95
2002 44.6
2003 45.19
2004 45.83
2005 46.78
2006 47.95
2007 49.07
2008 50.78
2009 51.78
2010 53.08
2011 55.14
2012 56.56
2013 57.85
2014 58.68
2015 58.91
2016 59.5
2017 61.03
2018 62.45
2019 63.51
2020 64.15
2021 65.75
2022 70.99
2023 75.76
2024-03 77.53
Today 77.68

All available years

Today's value of british pounds by year:

1956 | 1957 | 1958 | 1959 | 1960 | 1961 | 1962 | 1963 | 1964 | 1965 | 1966 | 1967 | 1968 | 1969 | 1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |

Other currencies: