Value of 1987 British Pounds today

£100 in 1987

£237.03 in 2019

The inflation rate in United Kingdom between 1987 and today has been 137.03%, which translates into a total increase of £137.03. This means that 100 pounds in 1987 are equivalent to 237.03 pounds in 2019. In other words, the purchasing power of £100 in 1987 equals £237.03 today. The average annual inflation rate has been 2.65%.

Inflation timeline in United Kingdom (1987-2019)

The following chart depicts the equivalence of £100 throughout the years due to 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 obtained by estimating figures from recent trends.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1987-2019) 136.84%
Total Inflation* 137.03%
Annual inflation avg. (1987-2019) 2.73%
Annual inflation avg.* 2.65%
CPI 1987 45.22
CPI 2019 107.1
CPI today* 107.18
£1 in 1987 £2.37 in 2019

* 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 1987 and 2019 and the average inflation rate has been 2.6496%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.03)32 = £236.84

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 45.22 and the CPI today is 107.18. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
107.1/45.22
= £236.84

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1987 £2.37 pounds today
£5 pounds in 1987 £11.85 pounds today
£10 pounds in 1987 £23.7 pounds today
£50 pounds in 1987 £118.51 pounds today
£100 pounds in 1987 £237.03 pounds today
£500 pounds in 1987 £1,185.13 pounds today
£1,000 pounds in 1987 £2,370.26 pounds today
£5,000 pounds in 1987 £11,851.28 pounds today
£10,000 pounds in 1987 £23,702.56 pounds today
£50,000 pounds in 1987 £118,512.82 pounds today
£100,000 pounds in 1987 £237,025.63 pounds today
£500,000 pounds in 1987 £1,185,128.17 pounds today
£1,000,000 pounds in 1987 £2,370,256.34 pounds today

Value of Pound in time (by year)

Period Value
1987 100
1988 103.71
1989 109.02
1990 115.44
1991 126.05
1992 134.23
1993 138.43
1994 141.53
1995 144.85
1996 149.27
1997 153.47
1998 156.35
1999 159.22
2000 161.65
2001 163.64
2002 165.86
2003 168.73
2004 170.94
2005 173.82
2006 177.58
2007 182.66
2008 186.86
2009 192.61
2010 196.59
2011 202.79
2012 210.08
2013 215.17
2014 219.37
2015 220.92
2016 222.03
2017 226.01
2018 232.2
2019 236.84
Today 237.03