Passive Income Calculator
See how much passive income your UK portfolio can generate in pounds — and how long it takes.
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Starting with £10,000 and contributing £400/month at 7% for 20 years grows to £634,000 — generating £2,113/month in passive income at the 4% rule.
Passive income planning in the UK
UK investors have access to tax-advantaged accounts that can significantly improve passive income outcomes over time. The most impactful are:
Stocks & Shares ISA
£20,000/year
All gains and income within an ISA are completely free of UK tax — no capital gains tax, no dividend tax, and no income tax on withdrawals. The most powerful tax wrapper for long-term passive income building.
Pension (SIPP / Workplace)
Up to 100% of earnings
Contributions receive tax relief at your marginal rate — a 40% taxpayer effectively gets £100 of pension for £60 out of pocket. Accessible from age 57. Best for retirement-focused passive income.
General Investment Account
No limit
No contribution limit, but gains and income are taxable. The annual CGT allowance (£3,000 in 2026/27) allows some tax-free realisation each year. Use after maxing ISA and pension allowances.
This calculator does not model the tax uplift from ISA or pension accounts. In practice, a £20,000/year ISA investor will accumulate significantly more than the pre-tax figures shown, because all returns compound without tax drag.
Disclaimer
This calculator provides estimates only and does not constitute financial, investment, or tax advice. Past investment returns are not a guarantee of future performance. Tax rules, allowances, and rates may change. Always consult a qualified financial adviser before making investment decisions.