ISA Calculator
This calculator helps you estimate the potential savings with an Individual Savings Account (ISA) in the UK. It's designed for individuals planning their personal finance strategy to maximize savings.
Results
Data Source and Methodology
All calculations are based on the formulas and data provided by Aviva. All calculations are strictly based on the formulas and data provided by this source.
The Formula Explained
\( A = P \left(1 + \frac{r}{n}\right)^{nt} + \frac{C((1 + \frac{r}{n})^{nt} - 1)}{r/n} \)
Glossary of Variables
- P: Initial Investment
- C: Annual Contribution
- r: Annual Interest Rate
- n: Number of compounding periods per year
- t: Number of years
- A: Final Account Balance
How It Works: A Step-by-Step Example
Imagine an initial investment of £1,000 with annual contributions of £5,000 over 10 years at an annual interest rate of 5%. The calculator uses these inputs to project your savings growth over the period.
Frequently Asked Questions (FAQ)
What is an ISA?
An ISA is a tax-efficient savings account available in the UK.
How does the interest compound?
Interest typically compounds annually, but it can vary depending on the provider.
Is there a limit to how much I can contribute?
Yes, ISAs have a maximum contribution limit set by the UK government each tax year.