Child Trust Fund calculator

Take a look at our Child Trust Fund calculator.  Our Child Trust Fund calculator aims to help you find out how much you might choose to pay into your child's Child Trust Fund account each month over an 18 year period.

This could be to aim for a target amount that you've got in mind, or perhaps you'd like to save towards a particular life event for your child - such as helping them with the deposit for their first home, or the cost of university. 

The possible costs of the life events in 18 years time are based on the sources below, and assume growth at an inflation rate of 2.5% a year, but make no allowance for past inflation since the source date shown.  Although inflation is currently higher than this, we believe this figure is a reasonable expectation over the full 18 years period.

Please remember that because Baby Bond® Child Trust Fund investment is linked to shares, the value of the account could fall as well as rise, and your child may get back less than has been invested.

The suggested monthly payment amount

• assumes that such sums paid into the account will grow at 7% a year, and that total charges will be 1.5% of the account's value each year
• assumes it's possible to make monthly payments for a full 18 years. If there's less than 18 years to go until your child's 18th birthday, you could need to pay in more than shown here
• takes into account Government contributions of £250 each at outset and age 7
• is an example only, and payment at this rate does not guarantee the target amount will be achieved. Your child could get back more or less than your chosen target amount. Don't forget that inflation would reduce what your child could buy with the amount they receive at 18
• £100 a month is the most you can pay into your child’s CTF account. So, if you’re aiming to cover the full cost of university, you’ll almost certainly need to save some extra money as well.

The minimum and maximum target amounts that you can enter

Using the assumed growth rate of 7% a year and charges at 1.5% a year

• the minimum target amount is based on a monthly payment of £10 for a full 18 years
• the maximum target amount is based on a monthly payment of £100 for a full 18 years

Source information

• Gap year travel – A round-the-world ticket lasting 364 days from www.realgap.co.uk including flights, travel insurance of £235 and daily living costs (Sep '09) assuming inflation at 2.5 % a year for 18 years.
• University – Based on the National Union of Students estimate of the average expenditure for the academic year 2009/2010 of £14,088 including tuition fees of £3,225, adjusted  for inflation at an assumed rate of 2.5% a year for 18 years, but not allowing for any possible increase in tuition fees prior to the course starting. The amount applies to students resident in England and Wales who are studying outside London.  Welsh students may be eligible for a grant (October '09).
• Car – www.whatcar.co.uk e.g Daihatsu Sirion, Fiat Panda and Citroen C2, today's cost of £8,320 assuming inflation at 2.5% a year for 18 years (Sep '09).
• First home – A 25% deposit on a First Time Buyers home. House price index from www.nationwide.co.uk indicates that the average house price for First Time Buyers across the UK is £133,611 assuming inflation at 2.5% a year for 18 years (Sept '09).
• Wedding – According to the You & Your Wedding Survey November/December 2008 assuming inflation is at 2.5% a year for 18 years (Sept '09).
• Business - The median start-up money required by UK Entrepreneurs today is £10,000 (Global Entrepreneurship Monitor Oct '09) assuming inflation is at 2.5% a year for 18 years.