ISA Calculations correct

Dogma_I

Could someone please confirm if the maths is correct.

Interest rate of 5% (and not taking account of inflation, interest rates rises/decreases etc).

Save £300 per month for 10 years = £46,584.68
Save £300 per month for 20 years = £123,310.10
Save £300 per month for 25 years = £178,652.91
Save £300 per month for 30 years = £249,677.59
Save £300 per month for 35 years = £340,827.73
Save £300 per month for 40 years = £457,806.05

Live off interest:
After 20 years = £6,309.06
After 25 years = £9,140.50
After 30 years = £12,774.26
After 40 years = £23,422.51

Thanks.

debbie42

There is a calculator here.

Dogma_I

Thanks for that. It seems the savings calculations match up. However, I am more concerned about the living off interest calculations - are they correct?

debbie42

Assuming 5% interest rate then I think your figures are roughly correct, in regard of gross interest on the lump sums involved. I make it slightly less, but not significantly so.

Dogma_I

Oh yes, that would be because on the Halifax calculator I put in continuing to save £1 per month. Thanks again.

dunstonh

Remember to deduct inflation. If you live off the interest then tax and inflation will erode the spending power. So you either have to use a lower rate or use investments.