ISA calculator — What returns might you get for your ISA?

Read on to find out how much interest you could receive on your stock and shares investments.

Updated: December 30, 2023
Matt Crabtree

Written By

Matt Crabtree

 

Are you considering investing in a stocks and shares ISA? Or perhaps you've already found excellent investment values in an ISA and you're wondering what returns you could see in the coming tax year?

Our ISA calculator can help you find out how much interest you could receive on your stock and shares investments.

Through innovative finance ISAs and cash ISAs, your total income could be worth so much more when invested, giving you a certainty that your future finances are secure. In this guide, you'll find out how to calculate the returns on your stocks and shares ISA, as well as any tax benefits and tax rules that may come into play.

And for any doubts and queries you may have, a list of frequently asked questions can be found at the bottom of this article.

How the Stocks and Shares ISA Calculator Works

For insight into how much your ISA investments could return, all you need to do is to input a few simple details into our calculator. First things first, though, you'll need to clarify how much you intend to invest (within your ISA allowance) and how much money your ISA already contains as a lump sum.

You won't need to divulge what bank you're with.

Next, a few less obvious details are required that may depend both on personal circumstances and fluctuating tax rules. You'll need to input any regular monthly payments you intend to make, the expected growth rate of your investments, and the length of time you want to invest for.

For the ISA calculator to work, it's important to be as accurate as possible. That said, the actual returns on your stocks and shares ISA for 2024 may differ to what our calculator indicates, as financial factors can change. For instance, tax treatment depends on personal circumstances, and what is legal for one tax year may become restricted in the future.

Please remember that our ISA calculator is not a definitive indication of your returns. Many factors can change over the course of a tax year, such as growth rate and investment values, and any estimates you receive from a personal financial advisor will likely differ.

What Returns Could You Get For Your ISA Investments?

How your ISA investments perform will depend mostly on the growth rate of the time. This can fluctuate and vary with inflation, and if you're worried or uncertain about anything it's best to contact a financial advisor before opening an ISA.

Since you don't pay income tax on an ISA, your returns will be much more than if you use other methods of saving. Regardless of whether you're with a long-established bank or a more modern digital bank like Monzo, ISAs constitute the best type of savings account for return on investment.

Provided you maintain your monthly contributions and regular savings, your financial goals will be achieved quicker with ISAs than any other type of account.

Putting just £500 a month for 5 years into your ISA with a growth rate of 5% will earn you more than £3,100 in tax-free investment. Of course, this is merely an approximation — the actual amount will differ slightly and could even be a lot more!

New to Stocks and Shares ISAs?

Opening a stocks and shares ISA isn't as difficult as you might think. Even if you have little or no knowledge on trading stocks and buying shares, there are plenty of friendly banks that are more than welcoming when it comes to starting an ISA.

If you're someone who doesn't know their bonds from their ISAs, it's always worth contacting a financial advisor before opening any sort of account. You can even just chat to a member of staff at a bank to find out more, but you'll have to choose a bank first.

At Compare Banks, we've got plenty of reviews and information on a vast number of banks, so you can make your mind up when it comes to choosing a stocks and shares ISA. Our comparisons are a reliable indicator of performance, so make sure to have a browse before selecting the one you'll be investing your valuable time and money in.

Still unsure of how a stocks and shares ISA works? Or perhaps you're wondering about something that we've not yet covered and would like some more information. For any unanswered questions, quibbles, or queries, check out our FAQs below.

Related Guides:

Frequently Asked Questions (FAQs)

What is an ISA?

Can I Have Multiple Stocks and Shares ISAs?

What is the Minimum Amount I Can Open a Stocks and Shares ISA with?

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