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Inflation calculator - British Pound

£10,000 in 1971
£118,284.26 in 2020

The inflation rate in the United Kingdom between 1971 and 2020 was 1,082.84%, which translates into a total increase of £108,284.26. This means that 10,000 pounds in 1971 are equivalent to 118,284.26 pounds in 2020. In other words, the purchasing power of £10,000 in 1971 equals £118,284.26 in 2020. The average annual inflation rate between these periods was 5.17%.

Inflation timeline in the United Kingdom (1971 - 2020)

The following chart depicts the equivalence of £10,000 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.

The following table contains relevant indicators:

Indicator Value
Cumulative inflation from 1971 to 2020 1,082.84%
Avg. Annual inflation from 1971 to 2020 5.17%
CPI 1971 9.21
CPI 2020 108.9

How to calculate the time value of money with inflation data?

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 1971 and 2020, use the corresponding CPI values:

Value2020
=Value1971 ×
CPI2020/CPI1971
=£ 10,000 ×
108.9/9.21
£118,284.26

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 £10,000 worth today. There are 49 years between 1971 and 2020 and the average inflation rate was 5.1711%. Therefore, we can resolve the formula like this:

Value2020
=PV × (1 + i)n
=£10,000 × (1 + 0.051711)49
£118,284.26

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1971 £11.83 pounds in 2020
£5 pounds in 1971 £59.14 pounds in 2020
£10 pounds in 1971 £118.28 pounds in 2020
£50 pounds in 1971 £591.42 pounds in 2020
£100 pounds in 1971 £1,182.84 pounds in 2020
£500 pounds in 1971 £5,914.21 pounds in 2020
£1,000 pounds in 1971 £11,828.43 pounds in 2020
£5,000 pounds in 1971 £59,142.13 pounds in 2020
£10,000 pounds in 1971 £118,284.26 pounds in 2020
£50,000 pounds in 1971 £591,421.3 pounds in 2020
£100,000 pounds in 1971 £1,182,842.59 pounds in 2020
£500,000 pounds in 1971 £5,914,212.96 pounds in 2020
£1,000,000 pounds in 1971 £11,828,425.91 pounds in 2020
Cumulative inflation 1971-2020 1,082.84%
Avg. annual inflation 1971-2020 5.17%
CPI 1971 9.21
CPI 2020 108.9

Value of Pound over time (by year)

Period Value
1971 10,000
1972 10,707.11
1973 11,691.74
1974 13,567.56
1975 16,851.9
1976 19,642.5
1977 22,753.92
1978 24,634.1
1979 27,940.32
1980 32,960.06
1981 36,874.6
1982 40,045.4
1983 41,891.21
1984 43,969.31
1985 46,638.86
1986 48,237.46
1987 50,238.8
1988 52,353.55
1989 55,394.83
1990 59,848.14
1991 64,301.45
1992 67,234.12
1993 68,972
1994 70,492.64
1995 72,339.13
1996 74,402.86
1997 76,032.12
1998 77,444.15
1999 78,856.17
2000 79,725.11
2001 81,028.52
2002 82,223.31
2003 83,309.48
2004 84,504.27
2005 86,242.15
2006 88,414.5
2007 90,478.23
2008 93,628.13
2009 95,474.62
2010 97,864.2
2011 101,665.81
2012 104,272.63
2013 106,662.21
2014 108,182.85
2015 108,617.32
2016 109,703.49
2017 112,527.54
2018 115,134.36
2019 117,089.47
2020 118,284.26

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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