Kalkulo

Savings calculator

Project how a deposit plus monthly contributions grow at a chosen annual return, with a year-by-year compound interest chart.

Result
£58,320
Final balance after 15 years
Convention: monthly compounding (annual rate / 12), contributions made at the end of each month.

About this tool

Why use this tool

The savings calculator projects the future value of your money by combining an initial deposit, regular monthly contributions and an annual return. It's ideal for planning medium- to long-term goals: house deposit, university fund, retirement top-up, emergency buffer or steady wealth building via ISAs and pensions.

How it works

Each month, the tool applies one twelfth of the annual return to your capital and adds your monthly contribution. Compound growth means both your contributions and previously earned interest work for you. The chart contrasts total contributions with the projected final balance, showing clearly how much comes from returns.

Real example

With a £5,000 initial deposit, £300 monthly contributions and a 6% average annual return, your account would grow to about £230,000 after 25 years. You would have contributed £95,000; the remaining £135,000 comes from compound growth — the "eighth wonder of the world".

Practical tips

Use tax-efficient wrappers first: the overall £20,000 annual ISA allowance stays unchanged for 2026/27, split as you like between a Cash ISA and a Stocks & Shares ISA (fully tax-free), plus a Lifetime ISA (£4,000/year with a 25% government bonus if you're under 40 and saving for a first home or retirement), and a workplace pension with employer match. From April 2027 the Autumn Budget 2025 is set to cap the amount savers under 65 can hold in a Cash ISA at £12,000, redirecting the rest of the £20,000 allowance toward Stocks & Shares — over-65s keep the full £20,000 cash allowance; this has not yet taken effect, so check gov.uk nearer the date. Global index funds (Vanguard FTSE Global All Cap, HSBC FTSE All-World Index) with an OCF under 0.25% are ideal core holdings. Automate contributions monthly and stay invested through downturns — pound-cost averaging works in your favour.

Disclaimer

The return rate is assumed constant, which is unrealistic: markets fluctuate. Past performance is not a reliable indicator of future results, and the value of investments can fall as well as rise. Inflation reduces real returns. This simulation is educational only and is not regulated financial advice. Consult an FCA-authorised financial adviser for personalised guidance.

Frequently asked questions

What is an ISA and how much can I save in one per year?⌄
An Individual Savings Account (ISA) is a tax-free savings wrapper — any interest, dividends, or capital gains earned inside an ISA are completely free from UK tax. The annual ISA allowance is £20,000 per person per tax year (April to April). Types include Cash ISAs (savings accounts), Stocks and Shares ISAs (investments), Lifetime ISAs (for first home or retirement), and Innovative Finance ISAs (peer-to-peer lending).
What is the Personal Savings Allowance?⌄
The Personal Savings Allowance (PSA) lets you earn interest on savings outside an ISA without paying tax. Basic rate taxpayers (20%) can earn up to £1,000 in savings interest tax-free per year. Higher rate taxpayers (40%) get a £500 allowance. Additional rate taxpayers (45%) receive no allowance, making ISAs increasingly valuable for higher earners.
What is a Lifetime ISA and who should use one?⌄
A Lifetime ISA (LISA) lets you save up to £4,000 per year and receive a 25% government bonus (up to £1,000 per year). It can only be used to buy your first home (on properties up to £450,000) or for retirement from age 60. Withdrawing for any other reason incurs a 25% penalty that effectively claws back the bonus plus a portion of your own contributions. It's excellent for first-time buyers under 40.
How does the UK State Pension affect my retirement savings needs?⌄
The full New State Pension is currently £221.20 per week (£11,502 per year) for those with 35 qualifying National Insurance years. This provides a baseline retirement income but is unlikely to maintain most people's pre-retirement lifestyle on its own. Workplace pensions (auto-enrolled at minimum 8% of qualifying earnings) and personal savings top up the State Pension to achieve your desired retirement income.
What is auto-enrolment and how much should I be contributing to my pension?⌄
Auto-enrolment requires employers to automatically enrol eligible workers into a workplace pension scheme. The minimum total contribution is 8% of qualifying earnings — at least 3% from your employer and 5% from you (including tax relief). Many financial advisers recommend contributing 12-15% of salary for a comfortable retirement. You can opt out but lose valuable employer contributions — generally a poor financial decision.
Is the Cash ISA allowance changing?⌄
Not yet. The overall £20,000 ISA allowance is unchanged for the 2026/27 tax year. The Autumn Budget 2025 announced that, from April 2027, savers under 65 will only be able to hold up to £12,000 of that allowance in a Cash ISA, with the remainder available for a Stocks and Shares ISA — savers 65 and over keep the full £20,000 cash allowance. This change has not taken effect yet, so it does not affect how you use your allowance today; check gov.uk closer to April 2027 for the final rules.

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