Value of 1986 British Pounds today

£100 in 1986

£233.28 in 2018

The inflation rate in United Kingdom between 1986 and today has been 133.28%, which translates into a total increase of £133.28. This means that 100 pounds in 1986 are equivalent to 233.28 pounds in 2018. In other words, the purchasing power of £100 in 1986 equals £233.28 today. The average annual inflation rate has been 2.6%.

Inflation timeline in United Kingdom (1986-2018)

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 (1986-2018) 129.56%
Total Inflation* 133.28%
Annual inflation avg. (1986-2018) 2.63%
Annual inflation avg.* 2.6%
CPI 1986 45.74
CPI 2018 105
CPI today* 106.7
£1 in 1986 £2.3 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 32 years between 1986 and 2018 and the average inflation rate has been 2.6001%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.03)32 = £229.56

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 1986 was 45.74 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/45.74
= £229.56

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1986 £2.33 pounds today
£5 pounds in 1986 £11.66 pounds today
£10 pounds in 1986 £23.33 pounds today
£50 pounds in 1986 £116.64 pounds today
£100 pounds in 1986 £233.28 pounds today
£500 pounds in 1986 £1,166.41 pounds today
£1,000 pounds in 1986 £2,332.81 pounds today
£5,000 pounds in 1986 £11,664.05 pounds today
£10,000 pounds in 1986 £23,328.11 pounds today
£50,000 pounds in 1986 £116,640.53 pounds today
£100,000 pounds in 1986 £233,281.05 pounds today
£500,000 pounds in 1986 £1,166,405.27 pounds today
£1,000,000 pounds in 1986 £2,332,810.54 pounds today

Value of Pound in time (by year)

Period Value
1986 100
1987 103.75
1988 107.6
1989 112.5
1990 118.72
1991 127.61
1992 136.95
1993 140.51
1994 143.84
1995 146.73
1996 151.18
1997 154.51
1998 157.18
1999 159.63
2000 161.41
2001 162.74
2002 164.52
2003 167.19
2004 169.41
2005 172.08
2006 175.56
2007 180.59
2008 184.74
2009 190.43
2010 194.36
2011 200.49
2012 207.7
2013 212.73
2014 216.88
2015 218.41
2016 219.51
2017 223.44
2018 229.56
Today 233.28