Compound Interest Calculator UK (ISA, Pension & Investments)

Compound Interest Calculator

See how a lump sum and regular monthly saving grows over time with reinvested returns — in an ISA, pension or investment account. Free PDF projection.

£
£
% / yr
years
% / yr

Model rising contributions as your income grows.

Get your full projection — free PDF

  • Year-by-year growth schedule
  • Contributions vs. compound growth split
  • The cost of waiting — start now vs. in 5 years
  • ISA & pension tax-wrapper notes

This calculator is a guide only and not financial advice. It assumes a constant annual return for illustration; real investment returns vary and can be negative. The value of investments can fall as well as rise. Past performance does not predict future results.

How the compound interest calculator works

Compound interest is the engine behind almost every long-term investment. Instead of earning a return only on the money you put in, you also earn returns on the returns already added — so your pot grows faster and faster the longer you stay invested. This free calculator shows exactly how a starting lump sum plus regular monthly contributions could grow over time, and how much of your final pot is your own money versus compound growth.

Enter your starting amount, how much you can add each month, the annual return you expect and how many years you will stay invested. You can also model an annual increase in your contributions as your income rises. The results update instantly, and the free PDF shows a year-by-year breakdown plus the striking difference that starting just five years earlier can make.

Compounding is most powerful inside a tax wrapper. Returns in a Stocks & Shares ISA or a pension grow free of UK income and capital gains tax, and a Lifetime ISA even adds a 25% government bonus on top. For shorter goals, compare the latest regular saver rates.

Frequently asked questions

What is compound interest?
Compound interest is interest earned on both your original money and the interest already added. Over years it snowballs, so the earlier you start the bigger the effect. A pot earning 7% a year roughly doubles every ten years even with no further contributions.
How is compound interest calculated?
The calculator compounds your balance each month: it adds your contribution, then applies one-twelfth of the annual rate, and repeats. Your final value is the future value of your lump sum plus the future value of every monthly contribution you make.
What annual return should I assume?
There is no guaranteed figure. Cash savings might return 3–5%, while a globally diversified stock-market portfolio has historically averaged around 5–7% a year after inflation over the long run — though returns vary year to year and can be negative. Try a few rates to see a realistic range.
Is investment growth taxed in the UK?
Growth inside a Stocks & Shares ISA or pension is free of UK income and capital gains tax. Outside a tax wrapper you may pay tax above your annual dividend and capital gains allowances, so most people use their ISA allowance first.
Does starting earlier really make that much difference?
Yes — dramatically. Because growth compounds on growth, money invested in your twenties has decades longer to multiply than money invested in your forties. The calculator’s “cost of waiting” figure shows how much a five-year delay could cost you by retirement.
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