ISA Calculator


Breakdown of Your ISA Contributions, Interest, and Fees.
Year Total Contribution
Interest Fees Ending Balance

Frequently Asked Questions

1. What is an ISA?

An Individual Savings Account (ISA) is a financial product available in the UK designed for saving and investing without paying income tax or capital gains tax on the returns.

2. How does compounding interest work in an ISA?

Compounding interest means earning interest on both the money you've saved and the interest you've previously earned. Over time, this leads to exponential growth of your investment as each period's interest potentially earns interest in subsequent periods.

3. What types of ISAs are available?

There are several types of ISAs including Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs, each catering to different needs and offering varying tax advantages and risk levels.

4. How much can I contribute to an ISA each year?

For the current tax year, there is a limit to how much you can contribute to your ISAs. This limit changes periodically, so it is recommended to check the latest figures on the official government or regulated financial advisory websites.

5. What are the benefits of using an ISA for savings or investments?

The main benefit is tax efficiency; you do not pay tax on any capital gains or interest earned within an ISA. This can significantly enhance the growth potential of your investments compared to a standard savings or investment account where tax would apply.

6. Are there any fees associated with ISAs?

Some ISAs may have fees depending on the provider and the type of ISA. These can include management fees, transaction fees, and transfer fees. It is important to review these before opening an ISA to understand the full cost.

7. Can I withdraw money from my ISA?

Withdrawal rules vary depending on the type of ISA. Some allow flexible withdrawals and replacements within the same tax year without affecting your annual allowance, while others might have restrictions or penalties for early withdrawals.

8. How is the future balance of an ISA calculated in this calculator?

The calculator estimates the future balance based on your initial investment, any additional contributions, the estimated interest rate, and the compounding frequency, taking into account any applicable fees.

9. What does 'compounding frequency' mean in this calculator?

Compounding frequency refers to how often the earned interest is added to the balance of the account for further interest calculation. Options typically include daily, monthly, quarterly, or annually, with more frequent compounding leading to greater interest accumulation over time.

10. What should I consider before choosing an ISA?

Consider your financial goals, risk tolerance, the time frame for your investment, and any specific features or restrictions of the ISA. Also, evaluate different providers to find the best rates and terms.

11. How does the annual ISA contribution limit affect my calculator inputs?

The ISA calculator works for those who have existing ISAs and those who are opening an ISA for the first time. To this end, it does not enforce a limit on the starting balance or additional contributions. You should understand that ISAs have limits, and you cannot exceed them.

12. Can I have multiple ISAs?

Yes, you can have different types of ISAs at the same time, but you can't exceed the total annual ISA contribution limit across all your ISAs in one tax year.


  1. GOV.UK