Why invest monthly?
Investing a fixed amount every month is one of the simplest ways to build wealth. You don't need a large lump sum, and because you buy at many different prices, you avoid the risk of putting everything in just before a fall. This is often called pound-cost averaging.
Why this calculator shows three lines
Nobody knows what investments will return. Instead of one precise-looking number, this calculator shows a middle estimate and a lower and higher one. The gap between them grows over time, which is a fair picture of real uncertainty. Actual returns won't follow any line smoothly: some years will be negative.
Getting the inputs right
Expected return
Long-run returns from global shares have historically been higher than cash, but with large ups and downs along the way. Many people plan with a cautious middle figure and treat anything above it as a bonus.
Fees
Add up your platform fee and your fund's ongoing charge. Even half a percent a year adds up over decades: try changing it here, or compare two options in our investment fees calculator.
Raising your monthly amount
Increasing what you invest by a few percent each year, for example in line with pay rises, can make a large difference to the end result.
Tax wrappers in the UK
Investing through a stocks and shares ISA or a pension can shelter your growth from UK tax. Allowances and rules change, so check the current limits on GOV.UK.
Frequently asked questions
What return should I expect from monthly investing?
There's no guaranteed return. Many people plan with a cautious figure, such as 4% to 6% a year before fees for a diversified share fund, and check the lower scenario is still acceptable.
Is it better to invest monthly or as a lump sum?
Historically, investing a lump sum straight away has often done better, because markets tend to rise over time. Monthly investing reduces the risk of bad timing and suits money you earn each month.
Does this include inflation?
The main figures are in future pounds. The today's-money figure adjusts the middle estimate for the inflation rate you enter.
What happens if markets fall?
Values can fall, sometimes sharply, and recovery can take years. Investing is usually best for money you won't need for at least five years.