Value of 1987 British Pounds today

£100 in 1987

£224.85 in 2018

The inflation rate in United Kingdom between 1987 and today has been 124.85%, which translates into a total increase of £124.85. This means that 100 pounds in 1987 are equivalent to 224.85 pounds in 2018. In other words, the purchasing power of £100 in 1987 equals £224.85 today. The average annual inflation rate has been 2.56%.

Inflation timeline in United Kingdom (1987-2018)

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 (1987-2018) 121.27%
Total Inflation* 124.85%
Annual inflation avg. (1987-2018) 2.6%
Annual inflation avg.* 2.56%
CPI 1987 47.45
CPI 2018 105
CPI today* 106.7
£1 in 1987 £2.21 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 31 years between 1987 and 2018 and the average inflation rate has been 2.5644%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.03)31 = £221.27

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 1987 was 47.45 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/47.45
= £221.27

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1987 £2.25 pounds today
£5 pounds in 1987 £11.24 pounds today
£10 pounds in 1987 £22.48 pounds today
£50 pounds in 1987 £112.42 pounds today
£100 pounds in 1987 £224.85 pounds today
£500 pounds in 1987 £1,124.25 pounds today
£1,000 pounds in 1987 £2,248.49 pounds today
£5,000 pounds in 1987 £11,242.46 pounds today
£10,000 pounds in 1987 £22,484.92 pounds today
£50,000 pounds in 1987 £112,424.62 pounds today
£100,000 pounds in 1987 £224,849.23 pounds today
£500,000 pounds in 1987 £1,124,246.17 pounds today
£1,000,000 pounds in 1987 £2,248,492.33 pounds today

Value of Pound in time (by year)

Period Value
1987 100
1988 103.71
1989 108.43
1990 114.43
1991 123
1992 132
1993 135.43
1994 138.64
1995 141.43
1996 145.72
1997 148.93
1998 151.5
1999 153.86
2000 155.57
2001 156.86
2002 158.57
2003 161.14
2004 163.29
2005 165.86
2006 169.22
2007 174.06
2008 178.07
2009 183.55
2010 187.34
2011 193.24
2012 200.19
2013 205.04
2014 209.04
2015 210.52
2016 211.57
2017 215.37
2018 221.27
Today 224.85