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Inflation calculator - British Pound

£18,376 in 1980
£65,946.23 in 2020

The inflation rate in the United Kingdom between 1980 and 2020 was 258.87%, which translates into a total increase of £47,570.23. This means that 18,376 pounds in 1980 are equivalent to 65,946.23 pounds in 2020. In other words, the purchasing power of £18,376 in 1980 equals £65,946.23 in 2020. The average annual inflation rate between these periods was 3.25%.

Inflation timeline in the United Kingdom (1980 - 2020)

The following chart depicts the equivalence of £18,376 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 1980 to 2020 258.87%
Avg. Annual inflation from 1980 to 2020 3.25%
CPI 1980 30.35
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 1980 and 2020, use the corresponding CPI values:

Value2020
=Value1980 ×
CPI2020/CPI1980
=£ 18,376 ×
108.9/30.35
£65,946.23

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 £18,376 worth today. There are 40 years between 1980 and 2020 and the average inflation rate was 3.2461%. Therefore, we can resolve the formula like this:

Value2020
=PV × (1 + i)n
=£18,376 × (1 + 0.032461)40
£65,946.23

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1980 £3.59 pounds in 2020
£5 pounds in 1980 £17.94 pounds in 2020
£10 pounds in 1980 £35.89 pounds in 2020
£50 pounds in 1980 £179.44 pounds in 2020
£100 pounds in 1980 £358.87 pounds in 2020
£500 pounds in 1980 £1,794.36 pounds in 2020
£1,000 pounds in 1980 £3,588.72 pounds in 2020
£5,000 pounds in 1980 £17,943.58 pounds in 2020
£10,000 pounds in 1980 £35,887.15 pounds in 2020
£50,000 pounds in 1980 £179,435.77 pounds in 2020
£100,000 pounds in 1980 £358,871.54 pounds in 2020
£500,000 pounds in 1980 £1,794,357.71 pounds in 2020
£1,000,000 pounds in 1980 £3,588,715.42 pounds in 2020
Cumulative inflation 1980-2020 258.87%
Avg. annual inflation 1980-2020 3.25%
CPI 1980 30.35
CPI 2020 108.9

Value of Pound over time (by year)

Period Value
1980 18,376
1981 20,558.45
1982 22,326.25
1983 23,355.33
1984 24,513.92
1985 26,002.26
1986 26,893.51
1987 28,009.3
1988 29,188.32
1989 30,883.91
1990 33,366.74
1991 35,849.56
1992 37,484.59
1993 38,453.5
1994 39,301.29
1995 40,330.75
1996 41,481.33
1997 42,389.68
1998 43,176.92
1999 43,964.16
2000 44,448.61
2001 45,175.29
2002 45,841.41
2003 46,446.98
2004 47,113.1
2005 48,082.01
2006 49,293.14
2007 50,443.72
2008 52,199.87
2009 53,229.33
2010 54,561.58
2011 56,681.06
2012 58,134.42
2013 59,466.67
2014 60,314.46
2015 60,556.69
2016 61,162.26
2017 62,736.73
2018 64,190.09
2019 65,280.11
2020 65,946.23

All available years

Today's value of british pounds by year:

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