swanlowpark compare price-inflation, savings-accounts and index-tracker funds using Savings Calculator

Savings Calculator

Compares returns from cash-ISAs and stock-and-shares-ISAs with inflation

    •   Amount          Year
    •     

Please Correct Amount

   

YearAmount Amount(CPI)CPI Amount(int%)int% Amount(FTSE)FTSE
20095,000 5,000.00  5,000.00  5,000.00 
20100 5,185.003.7 5,140.002.80 5,688.0013.76
20110 5,402.774.2 5,281.352.75 5,448.54-4.21
20120 5,548.642.7 5,429.232.80 6,077.8411.55
20130 5,659.622.0 5,525.331.77 7,297.0620.06
20140 5,687.920.5 5,607.101.48 7,328.430.43
20150 5,699.290.2 5,685.601.40 7,385.600.78
20160 5,790.481.6 5,755.531.23 8,559.9015.90
20170 5,964.193.0 5,813.091.00 9,638.4512.60
20180 6,089.442.1 5,881.681.18 8,711.23-9.62

Example
I saved 5000.00 during 2009.
What is the value of those savings at the end of 2018?
Amount=5000, Year=2009.
Answer: At end 2018 allowing for inflation 6,089
If invested in a savings account: maybe 5,882
If invested in Stock Market: maybe 8,711

Start Year: The calculator increases the amount from the end of Start Year onwards. If I had invested 5,000.00 in January 2009, I should use Start year=2008.

FTSE based on FTSE All-share index-tracker funds

Example - two stock market recessions in ten years

2000-2002 Crash after technology bubble, 2007-2008 Global Financial Crisis
YearAmount Amount(CPI)CPI Amount(int%)int% Amount(FTSE)FTSE
19985,000 5,000.00  5,000.00  5,000.00 
19990 5,055.001.1 5,235.504.71 6,172.5023.45
20000 5,095.440.8 5,521.885.47 5,762.03-6.65
20010 5,151.491.1 5,778.104.64 4,952.46-14.05
20020 5,239.071.7 5,990.733.68 3,791.11-23.45
20030 5,307.171.3 6,214.193.73 4,553.5020.11
20040 5,397.391.7 6,497.554.56 5,104.0212.09
20050 5,499.951.9 6,817.234.92 6,190.6721.29
20060 5,664.943.0 7,136.284.68 7,181.1816.00
20070 5,783.912.1 7,532.345.55 7,509.354.57
20080 5,963.213.1 7,915.745.09 5,205.48-30.68
20090 6,136.142.9 8,090.682.21 6,734.3429.37
20100 6,363.183.7 8,317.212.80 7,660.9813.76
20110 6,630.434.2 8,545.942.75 7,338.45-4.21
20120 6,809.452.7 8,785.222.80 8,186.0411.55
20130 6,945.642.0 8,940.721.77 9,828.1620.06
20140 6,980.370.5 9,073.051.48 9,870.430.43
20150 6,994.330.2 9,200.071.40 9,947.420.78
20160 7,106.241.6 9,313.231.23 11,529.0515.90
20170 7,319.433.0 9,406.361.00 12,981.7212.60
20180 7,473.142.1 9,517.361.18 11,732.87-9.62

Example
I saved 5000.00 in 1998.
What is the value of those savings at the end of 2018?
Amount=5000, Year=1998.
Answer: At end 2018 allowing for inflation 7,473
If invested in a savings account: maybe 9,517
If invested in Stock Market: maybe 11,732

FTSE:
Percentage change column is FTSE All-share total return minus charges-adjustment.
Charges-adjustment covers tracking discrepancies and annual management charges. It is the difference between the FTSE All-share total return and the return from the UK-index-tracker-fund-ISA's listed in the table below.
For years 1986-2014 this charges-adjustment is 0.75%, for 2015 it is 0.20%, for 2016 it is 0.85%, for 2017 it is 0.50%, for 2018 it is 0.15%.
In 2018, majority of monitored funds out-performed the FTSE All Share benchmark even after absorbing annual charges, however an estimate of platform charges was also applied.

Fund Name  Annual
Charge
Legal & General UK Index Trust R Acc 0.56%
Vanguard FTSE UK All Share Index Unit Trust Acc 0.08%
BlackRock UK Equity Tracker Fund Class D Acc 0.06%
Fidelity MoneyBuilder UK Index Fund A Acc 0.30%
HSBC FTSE All Share Index Institutional Accumulation 0.17%
M&G Index Tracker A Acc0.46%

ISAs: savings-account and FTSE end-of-year amounts are not reduced by tax.

Download spreadsheet equivalent of this calculator SavingsCalculatorToDec2018.xlsx
Spreadsheet is more flexible than web-page: you can put in different annual amounts.

Tax-free ISA's(Individual Savings Accounts) were introduced in 1999. ISA's were preceded by other tax-free savings - TESSA's (started 1991) and PEP's (started 1986).

Returns from FTSE-All-Share and FTSE-250 index-tracker funds in real terms

Table shows returns from £1,000 invested from start-year in FTSE-All-Share and FTSE-250 index-tracker funds in money amount and real terms.
Real terms are money amount ratioed down by CPI inflation.
Fund returns are change in total-return index less a charges adjustment. For FTSE-All-Share the charges adjustment is described above and for FTSE-250 it is 0.55% per year.