Compound Interest Calculator — United Kingdom

Project your wealth after 18%/24% CGT with £3,000 annual exemption. Free compound interest calculator for UK investors.

Tax Considerations for UK Investors

Capital Gains Tax

18% for basic rate taxpayers, 24% for higher/additional rate (increased from 10%/20% in October 2024). This calculator uses the 24% higher rate.

Annual Exemption

£3,000 tax-free allowance per year. Gains below this threshold are not taxed.

ISA Advantage

Investments held in an ISA are completely tax-free, including all capital gains and dividends.

Disclaimer: This is a simplified calculation. Actual taxes depend on your personal situation, annual exemptions, and when gains are realized. Consult a tax advisor for accurate advice.

Frequently Asked Questions

What return rate should I use?

Historical global stock market returns average 7-10% per year. Use 7% for a conservative estimate that accounts for inflation.

Does this calculator account for inflation?

No, results are shown in nominal terms. Subtract 2-3% from your return rate for a rough inflation-adjusted estimate.

How accurate is this calculation?

This is a simplified estimate. Actual taxes depend on your personal situation, holding period, and local regulations. Consult a tax advisor for precise numbers.

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