Child Trust Fund Calculator

Try out our Child Trust Fund calculator. It aims to show you how adding to a CTF account could really help make a difference to your child and their future.

Perhaps you’d like to be able to help your child with the purchase of their first car or the cost of university? Or maybe you’ve already got a target amount for their CTF account in mind?

Why not use our Child Trust Fund calculator to find out how much you might need to contribute to your child’s CTF each month over 18 years to aim to reach your target.

Simply select one of the life events or enter your own target amount, and then click on ‘Calculate’. Our Child Trust Fund calculator will then reveal how much might need to be added into the CTF each month to achieve your goal, based on the assumptions listed below.

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.gogap.com including flight and travel insurance assuming inflation at 2.5 % a year for 18 years (September 08).
• University - Based on the National Union of Students estimate of the average expenditure for the academic year 2008/2009 of £13,626 including tuition fees of £3,145, 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 08).
• Car - www.whatcar.co.uk e.g. Daihatsu Sirion, Fiat Panda and Citroen C1, today's cost of £9,686 assuming inflation at 2.5% a year for 18 years (September 08).
• First home - A 13% deposit on the average home. House value of £130,895 based on Median first time buyer advance (£113,879) and percentage advanced (87%) as at June 2008 from www.cml.org.uk (September 08). Assuming inflation at 2.5% a year for 18 years.
• Wedding - According to a survey of 1,500 brides-to-be for 'You and Your Wedding' magazine assuming inflation is at 2.5% a year for 18 years (September 08) (Sourced: www.dailymail.co.uk).
• Business - The average start-up money required and invested by UK Entrepreneurs today is £9,500 (Global Entrepreneurship Monitor Oct 08) assuming inflation is at 2.5% a year for 18 years.