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Value of 1987 British Pounds today

£100 in 1987
£264.95 in 2022

The inflation rate in the United Kingdom between 1987 and today has been 164.95%, which translates into a total increase of £164.95. This means that 100 pounds in 1987 are equivalent to 264.95 pounds in 2022. In other words, the purchasing power of £100 in 1987 equals £264.95 today. The average annual inflation rate between these periods has been 2.82%.

Inflation timeline in the United Kingdom (1987 - 2022)

The following chart depicts the equivalence of £100 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 1987-2021 141.28%
Cumulative inflation 1987-today 164.95%
Avg. Annual inflation 1987-2021 2.62%
CPI 1987 46.25
CPI 2021 111.6
CPI 2022-08 (latest official data) 121.8
CPI today 122.55

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 1987 and 2021, use the corresponding CPI values:

Value2021
=Value1987 ×
CPI2021/CPI1987
=£ 100 ×
111.6/46.25
£241.28

To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 122.55:

Valuetoday
=Value1987 ×
CPItoday/CPI1987
=£ 100 ×
122.55/46.25
£264.95

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 £100 worth today. There are 34 years between 1987 and 2021 and the average inflation rate was 2.6244%. Therefore, we can resolve the formula like this:

Value2021
=PV × (1 + i)n
=£100 × (1 + 0.026244)34
£241.28

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1987 £2.41 pounds in 2021
£5 pounds in 1987 £12.06 pounds in 2021
£10 pounds in 1987 £24.13 pounds in 2021
£50 pounds in 1987 £120.64 pounds in 2021
£100 pounds in 1987 £241.28 pounds in 2021
£500 pounds in 1987 £1,206.41 pounds in 2021
£1,000 pounds in 1987 £2,412.81 pounds in 2021
£5,000 pounds in 1987 £12,064.07 pounds in 2021
£10,000 pounds in 1987 £24,128.15 pounds in 2021
£50,000 pounds in 1987 £120,640.75 pounds in 2021
£100,000 pounds in 1987 £241,281.49 pounds in 2021
£500,000 pounds in 1987 £1,206,407.45 pounds in 2021
£1,000,000 pounds in 1987 £2,412,814.9 pounds in 2021
Cumulative inflation From 1987 164.95%
Avg. annual inflation From 1987 2.82%
CPI 1987 46.25
CPI today 122.55

Value of Pound over time (by year)

Period Value
1987 100
1988 104.21
1989 110.26
1990 119.13
1991 127.99
1992 133.83
1993 137.29
1994 140.32
1995 143.99
1996 148.1
1997 151.34
1998 154.15
1999 156.96
2000 158.69
2001 161.29
2002 163.66
2003 165.83
2004 168.21
2005 171.66
2006 175.99
2007 180.1
2008 186.37
2009 190.04
2010 194.8
2011 202.37
2012 207.55
2013 212.31
2014 215.34
2015 216.2
2016 218.36
2017 223.99
2018 229.17
2019 233.07
2020 235.44
2021 241.28
2022-08 263.33
Today 264.95

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 |

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