£
£
Final balance after 10 years: £31,807. Gross interest earned £6,807.
Saving £1,000 now plus £200 a month at 4.5% for 10 years would grow to about £31,807 — that's £6,807 of interest on the £25,000 you put in.
After 2.5% inflation, that's worth about £24,847 in today's money — what it would actually buy at today's prices.
Gross interest£6,807
Estimated tax due£107
Interest after tax£6,700