Stocks and Shares ISA Calculator
Estimate the potential growth of your ISA investments and plan for your financial future.
Stocks and Shares ISAs
A Stocks and Shares ISA (Individual Savings Account) is a tax-efficient investment account available to UK residents. These accounts allow you to invest in a range of assets including stocks, bonds, funds, and ETFs while protecting your returns from income tax and capital gains tax.
Each tax year (April 6 to April 5), you have an ISA allowance – currently £20,000 – which you can invest across different types of ISAs. The potential returns from a Stocks and Shares ISA typically outperform Cash ISAs over the long term, though they come with greater risk as the value of investments can fluctuate.
Platform fees, fund charges, and market performance will all impact your actual returns. Most financial advisors recommend Stocks and Shares ISAs for medium to long-term investment horizons (5+ years) to ride out market volatility.
How to Use the Stocks and Shares ISA Calculator
Step 1: Enter Your Initial Investment
Input the lump sum amount you wish to invest initially. This can be any amount from £0 up to your annual ISA allowance (currently £20,000). If you’re transferring an existing ISA, enter its current value.
Step 2: Set Your Monthly Contributions
Specify how much you plan to contribute each month. Regular investments can significantly boost your returns through pound-cost averaging. Remember that your total annual contributions (initial + monthly) should not exceed the ISA allowance.
Step 3: Select Your Investment Period
Choose how long you plan to invest for. Stocks and shares investments typically perform better over longer periods (5+ years), allowing time to recover from market downturns and benefit from compound growth.
Step 4: Choose Your Risk Level
Select your expected annual return based on your risk tolerance. Lower risk portfolios (3%) typically contain more bonds, while higher risk options (7%) contain more equities. You can also enter a custom return rate if you have a specific target in mind.
Step 5: Review Your Projection Results
After clicking “Calculate,” examine your projected investment growth. The results show your total contributions, projected future value, and real value after inflation. The chart visualizes how your investment might grow over time compared to your contributions.