Plan · Calculator 05
What might your investments be worth?
Explore cautious, central and stronger return paths, then test fees, inflation, simplified tax drag, a market fall and the contribution needed for a target.
1 Enter your figures2 Review assumptions3 Explore the result
Your figures
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Central scenario in today’s money
£92,248£137,076 in future pounds after 20 years, after the entered fees.Illustrative real-value range£65,540–£132,743Cautious to stronger scenario
Total paid in£82,892£69,361 in today’s money at each payment date
Net investment growth£54,183After fees and simplified tax drag
Is the target resilient?
The target depends on the stronger-return scenario.The central scenario requires about £275 a month—£25 more than entered.Scenario range
Three paths, not one promised outcome
Hover over or focus a point to see its exact value.
What reduces the gross path?
Fees, tax and purchasing power are separate drags
Inflation then reduces the ending value to £92,248 of estimated purchasing power in today’s money.
If -25% occurs in year 3
£84,329in today’s moneyDifference from smooth central path
£7,919Other years return to the central assumptionCautious £34,460 shortCentral £7,752 shortStronger £32,743 above
Annual values
Values below use today’s purchasing power.
| Year | Cautious | Central | Stronger | Paid in |
|---|---|---|---|---|
| 0 | £10,000 | £10,000 | £10,000 | £10,000 |
| 1 | £12,911 | £13,244 | £13,576 | £12,968 |
| 2 | £15,808 | £16,566 | £17,343 | £15,936 |
| 3 | £18,690 | £19,969 | £21,312 | £18,904 |
| 4 | £21,558 | £23,455 | £25,493 | £21,872 |
| 5 | £24,411 | £27,025 | £29,898 | £24,840 |
| 6 | £27,250 | £30,682 | £34,539 | £27,808 |
| 7 | £30,075 | £34,427 | £39,428 | £30,776 |
| 8 | £32,886 | £38,263 | £44,579 | £33,744 |
| 9 | £35,683 | £42,193 | £50,006 | £36,712 |
| 10 | £38,466 | £46,218 | £55,723 | £39,680 |
| 11 | £41,235 | £50,340 | £61,746 | £42,648 |
| 12 | £43,990 | £54,563 | £68,092 | £45,616 |
| 13 | £46,731 | £58,888 | £74,777 | £48,585 |
| 14 | £49,458 | £63,318 | £81,820 | £51,553 |
| 15 | £52,172 | £67,855 | £89,241 | £54,521 |
| 16 | £54,873 | £72,503 | £97,058 | £57,489 |
| 17 | £57,560 | £77,263 | £105,294 | £60,457 |
| 18 | £60,233 | £82,139 | £113,971 | £63,425 |
| 19 | £62,893 | £87,133 | £123,112 | £66,393 |
| 20 | £65,540 | £92,248 | £132,743 | £69,361 |
Assumptions used
- Returns are constant effective annual nominal total returns before the entered fees and simplified tax drag, except in the optional market-fall year.
- The default 2%, 5% and 8% paths are generic FCA-standardised maximum projection rates for certain tax-exempt and pension products, not forecasts for your investment.
- Contributions enter at month end and increase once a year under the selected pattern.
- The tax-drag input applies only to general or other taxable accounts and reduces the annual return by the entered number of percentage points.
- ISA eligibility and contribution limits are not checked. Pension contributions are amounts reaching the account; tax relief, annual allowances, access and withdrawal tax are not calculated.
- The monthly amount required for a target uses the central scenario and holds every other assumption unchanged.
Investment returns vary and losses do not arrive in a smooth, predictable order. The cautious and stronger lines are scenarios, not confidence bounds, and the actual result may fall outside them. You may receive less than you invest.
Common questions
Investment growth calculator FAQs
How does the investment growth calculator work?
It compounds the initial investment and month-end contributions across cautious, central and stronger annual-return assumptions. It deducts the entered fees, applies any simplified taxable-account drag, and converts each result into today’s money using inflation.
Why are the default return assumptions 2%, 5% and 8%?
They are generic starting points based on the maximum lower, intermediate and higher nominal rates used in certain FCA standardised projections for tax-exempt and pension products. They are not forecasts and may be unsuitable for your actual investments, so replace them where appropriate.
Are the cautious and stronger paths probability bounds?
No. They are deterministic scenarios: each assumes one smooth annual return throughout, apart from the optional market-fall year. The actual result can fall below the cautious path, exceed the stronger path or arrive in a very different sequence.
What is the difference between future pounds and today’s money?
Future pounds are the nominal cash amount produced by the model. Today’s money divides that amount by compounded inflation to estimate its purchasing power in current pounds.
How are investment fees included?
The percentage fee reduces the balance through the year. Fixed monthly fees, contribution charges, an initial charge and an exit charge are applied separately. Fee drag includes the charges and the growth those amounts no longer earn.
What does estimated annual tax drag mean?
For a general or other taxable account, it is your estimate of how many percentage points tax reduces the annual return on average. It is deliberately simplified and does not calculate dividends, realised gains, allowances, losses or disposal timing.
How are ISAs and pensions treated?
The calculator applies no annual tax drag inside an ISA or pension. ISA limits and eligibility are not checked. Pension contributions should be entered as the gross amount reaching the account; tax relief, annual allowances, access rules and tax on withdrawal are outside the result.
What does the market-fall scenario show?
It replaces the central return with the entered negative or lower return for one selected year, then returns to the central assumption. This shows one sequence-risk sensitivity, not a forecast or a full volatility simulation.
How is the monthly contribution needed for a target calculated?
The calculator solves for the starting monthly amount that reaches the target in today’s money under the central return, fee, tax, inflation and contribution-growth assumptions. It is a funding sensitivity, not a recommendation.