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Inflation calculator - British Pound

£600 in 1956
£12,539.55 in 2020

The inflation rate in the United Kingdom between 1956 and 2020 was 1,989.92%, which translates into a total increase of £11,939.55. This means that 600 pounds in 1956 are equivalent to 12,539.55 pounds in 2020. In other words, the purchasing power of £600 in 1956 equals £12,539.55 in 2020. The average annual inflation rate between these periods was 4.86%.

Inflation timeline in the United Kingdom (1956 - 2020)

The following chart depicts the equivalence of £600 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 1956 to 2020 1,989.92%
Avg. Annual inflation from 1956 to 2020 4.86%
CPI 1956 5.21
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 1956 and 2020, use the corresponding CPI values:

Value2020
=Value1956 ×
CPI2020/CPI1956
=£ 600 ×
108.9/5.21
£12,539.55

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 £600 worth today. There are 64 years between 1956 and 2020 and the average inflation rate was 4.8642%. Therefore, we can resolve the formula like this:

Value2020
=PV × (1 + i)n
=£600 × (1 + 0.048642)64
£12,539.55

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1956 £20.9 pounds in 2020
£5 pounds in 1956 £104.5 pounds in 2020
£10 pounds in 1956 £208.99 pounds in 2020
£50 pounds in 1956 £1,044.96 pounds in 2020
£100 pounds in 1956 £2,089.92 pounds in 2020
£500 pounds in 1956 £10,449.62 pounds in 2020
£1,000 pounds in 1956 £20,899.25 pounds in 2020
£5,000 pounds in 1956 £104,496.24 pounds in 2020
£10,000 pounds in 1956 £208,992.47 pounds in 2020
£50,000 pounds in 1956 £1,044,962.36 pounds in 2020
£100,000 pounds in 1956 £2,089,924.72 pounds in 2020
£500,000 pounds in 1956 £10,449,623.6 pounds in 2020
£1,000,000 pounds in 1956 £20,899,247.2 pounds in 2020
Cumulative inflation 1956-2020 1,989.92%
Avg. annual inflation 1956-2020 4.86%
CPI 1956 5.21
CPI 2020 108.9

Value of Pound over time (by year)

Period Value
1956 600
1957 622.15
1958 640.77
1959 644.49
1960 650.96
1961 673.4
1962 701.66
1963 715.82
1964 739.31
1965 774.61
1966 804.89
1967 824.87
1968 863.62
1969 910.66
1970 968.63
1971 1,060.12
1972 1,135.08
1973 1,239.46
1974 1,438.32
1975 1,786.5
1976 2,082.34
1977 2,412.19
1978 2,611.51
1979 2,962.01
1980 3,494.16
1981 3,909.15
1982 4,245.29
1983 4,440.97
1984 4,661.27
1985 4,944.28
1986 5,113.75
1987 5,325.91
1988 5,550.1
1989 5,872.52
1990 6,344.62
1991 6,816.72
1992 7,127.62
1993 7,311.86
1994 7,473.06
1995 7,668.81
1996 7,887.59
1997 8,060.32
1998 8,210.01
1999 8,359.7
2000 8,451.82
2001 8,589.99
2002 8,716.66
2003 8,831.8
2004 8,958.47
2005 9,142.7
2006 9,373
2007 9,591.78
2008 9,925.7
2009 10,121.45
2010 10,374.78
2011 10,777.79
2012 11,054.15
2013 11,307.47
2014 11,468.68
2015 11,514.74
2016 11,629.88
2017 11,929.27
2018 12,205.62
2019 12,412.89
2020 12,539.55

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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