How Much Will My Isa Earn Calculator

Introduction & Importance

An Individual Savings Account (ISA) is a tax-efficient savings wrapper that allows you to save and invest without paying income tax on the interest or gains. Understanding how much your ISA could earn is crucial for planning your financial future.

How to Use This Calculator

1. Enter your initial investment amount.
2. Enter your planned annual contribution.
3. Select your expected interest rate.
4. Enter the number of years you plan to invest.
5. Click ‘Calculate’.

Formula & Methodology

The calculation uses the future value formula: FV = P * (1 + r)^n, where:

• FV is the future value of the investment/loan, including interest.
• P is the principal investment amount (the initial deposit or loan amount).
• r is the annual interest rate (decimal).
• n is the number of times that interest is compounded per year.

Real-World Examples

Data & Statistics

Average Annual Returns of Different Investments (2010-2020)

Investment Type	Average Annual Return (%)
Stocks	10.3
Bonds	4.2
Cash	1.2

Expert Tips

• Start investing early to take advantage of compound interest.
• Consider investing in a mix of assets to spread risk.
• Review and adjust your investment strategy regularly.

Interactive FAQ

What types of ISAs are there?

There are four main types of ISAs: Cash ISA, Stocks and Shares ISA, Lifetime ISA, and Innovative Finance ISA.

For more information, see the ISA rules from the UK government.