How much is £500 a month invested for 20 years?
Investing £500 a month for 20 years at a 7% average annual return grows to about £260,463. You contribute £120,000 — compound growth adds roughly £140,463 on top.
How this is calculated
- ·7% average annual return (long-run global equity proxy)
- ·£500 invested monthly for 240 months
- ·Returns reinvested (compounded monthly)
- ·Before inflation, fees and tax
£500/month for 20 years by return rate
| Annual return | Final value |
|---|---|
| 5% | £205,517 |
| 7% | £260,463 |
| 9% | £333,943 |
Final value by return rate
Frequently Asked Questions
Is 7% a realistic return?
It's a common long-run average for a globally diversified equity portfolio before inflation. Real returns vary year to year and aren't guaranteed.
What about inflation?
Inflation erodes purchasing power. At 2.5% inflation, the real value of the final pot is lower than the headline figure — though still substantial.
Should I use an ISA?
A Stocks & Shares ISA shelters the growth from tax. Over 20 years that tax saving can be worth tens of thousands.
M Singh CeMAP DipFA · 25+ Years UK Financial Services
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M Singh CeMAP DipFA · 25+ Years UK Financial Services
Important Information
This calculator is for informational purposes only and does not constitute financial advice or a personal recommendation.
Results are estimates based on the information you provide and may not reflect your actual financial position.
You should consider seeking independent professional advice tailored to your specific circumstances before making any financial decision.