Value of 1985 British Pounds today

£100 in 1985

£246.22 in 2018

The inflation rate in United Kingdom between 1985 and today has been 146.22%, which translates into a total increase of £146.22. This means that 100 pounds in 1985 are equivalent to 246.22 pounds in 2018. In other words, the purchasing power of £100 in 1985 equals £246.22 today. The average annual inflation rate has been 2.69%.

Inflation timeline in United Kingdom (1985-2018)

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 (1985-2018) 142.52%
Total Inflation* 146.22%
Annual inflation avg. (1985-2018) 2.72%
Annual inflation avg.* 2.69%
CPI 1985 43.3
CPI 2018 105
CPI today* 106.6
£1 in 1985 £2.43 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 33 years between 1985 and 2018 and the average inflation rate has been 2.6856%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.03)33 = £242.52

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 1985 was 43.3 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/43.3
= £242.52

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1985 £2.46 pounds today
£5 pounds in 1985 £12.31 pounds today
£10 pounds in 1985 £24.62 pounds today
£50 pounds in 1985 £123.11 pounds today
£100 pounds in 1985 £246.22 pounds today
£500 pounds in 1985 £1,231.09 pounds today
£1,000 pounds in 1985 £2,462.18 pounds today
£5,000 pounds in 1985 £12,310.91 pounds today
£10,000 pounds in 1985 £24,621.82 pounds today
£50,000 pounds in 1985 £123,109.1 pounds today
£100,000 pounds in 1985 £246,218.2 pounds today
£500,000 pounds in 1985 £1,231,091.01 pounds today
£1,000,000 pounds in 1985 £2,462,182.01 pounds today

Value of Pound in time (by year)

Period Value
1985 100
1986 105.64
1987 109.61
1988 113.68
1989 118.85
1990 125.42
1991 134.82
1992 144.68
1993 148.44
1994 151.96
1995 155.02
1996 159.71
1997 163.24
1998 166.05
1999 168.64
2000 170.52
2001 171.93
2002 173.81
2003 176.62
2004 178.97
2005 181.79
2006 185.47
2007 190.78
2008 195.17
2009 201.18
2010 205.33
2011 211.8
2012 219.42
2013 224.74
2014 229.13
2015 230.74
2016 231.9
2017 236.05
2018 242.52
Today 246.22