UK Premium Bonds Calculator 2026
Free UK Premium Bonds calculator from National Savings & Investments. Calculate expected prize earnings, monthly draw odds, and investment returns on Premium Bond holdings.
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Calculator inputs
Premium Bonds Investment
Investment Period
Premium Bonds Assumptions
Savings Account Comparison
Your results
- Premium Bonds pay prizes by monthly draw, not interest. There is no guaranteed return and a holder can win nothing for a year or more.
- The prize fund rate is a MEAN across all bonds. It is pulled upward by the two £1 million jackpots and the other large prizes, so most holders win less than it implies.
- Prizes are free of UK income tax and capital gains tax.
- The prize fund rate and the odds are variable and change by NS&I announcement, often several times a year.
- Prizes are tax-free, so a taxable savings account would need to pay about 4.75% gross to match the 3.80% prize fund rate at your 20% tax rate. Your Personal Savings Allowance may cover some or all of that interest, in which case the comparison narrows.
Sources & methodology
- Formula:
- Mean expected prize money
- Reference:
- NS&I (National Savings and Investments)
- Rates for:
- 2026/27
- Figures verified:
- — checked against the primary source above
- Scheduled re-verification:
- December 2026
Calculation type: Planning estimate. Uses 2026/27 rates and thresholds. Figures are taken from NS&I (National Savings and Investments) — see sources below.
Reviewed by Team GlobalCalqulate — Verifies each figure against the issuing authority's published source · Checked
Your entries stay on this device. This calculator runs entirely in your browser — the figures you type are not sent to us or to anyone else. The page itself uses cookies for analytics and advertising, described in the privacy policy.
Formula & methodology
Formula used
Mean expected prize money
Mean = holding × 3.80%The NS&I prize fund rate applied to a holding gives the average across all bonds — not what a typical holder actually receives.
Chance of any single bond winning
P(win per bond per draw) = 1 in 22,000Each £1 bond is entered into every monthly draw with the same odds, independently of every other bond.
Chance of winning nothing in a year
P(nothing) = (1 − 1/22000) ^ (bonds × 12)Each bond in each of the twelve monthly draws is an independent chance to lose, so the probability of a completely blank year compounds.
Variable definitions
| Symbol | Meaning | Unit |
|---|---|---|
| Holding | Amount held in Premium Bonds. £1 buys one bond number. The minimum holding is £25 and the maximum is £50,000. | £ |
| r | Prize fund rate. The share of the total holding paid out in prizes each year, currently 3.80%. NS&I changes it by announcement, not annually. | % per year |
| Odds | Odds per bond per draw. The published chance that any one bond wins any prize in a given monthly draw, currently 1 in 22,000. | ratio |
Step-by-step calculation
- 1. Convert the holding into bond numbersEvery whole £1 held is one entry, so a £10,000 holding has 10,000 chances in each draw.
- 2. Apply the prize fund rate for the meanThis gives the average return across all bondholders, which is the figure NS&I advertises.
- 3. Model the typical outcome separatelyBecause two £1m jackpots and other large prizes pull the average upwards, the median holder wins less than the mean. Both are shown so the difference is visible.
- 4. Compute the probability of winning nothingCompound the per-bond, per-draw odds across twelve draws to show how likely a blank year is at your holding level.
Limitations
- Premium Bonds pay no interest. Any return is a prize, and prizes are a lottery — a holder can quite normally win nothing for a year, and past outcomes do not predict future ones.
- The mean return shown is an average across all bonds, not a forecast for your holding. The prize distribution is heavily skewed by the two £1m jackpots, so the typical holder receives less than the mean.
- The prize fund rate and the odds are variable and change by NS&I announcement, not on a fixed annual cycle. Figures here are those published at the last dataset check.
- Prizes are free of UK Income Tax and Capital Gains Tax, but the holding itself earns nothing, so inflation erodes its real value in any year without prizes.
- The calculator does not model the ordering or timing of prizes, and cannot tell you what you personally will win.
This page is educational. It projects a future value from assumptions you choose, and a projection is not a forecast: real returns vary year to year, and the rules, limits and rates used here can change before the period modelled ends. Treat the output as one scenario among many, not a prediction of what you will have.
Sources & references
- Premium Bonds — NS&I (National Savings and Investments)
Frequently Asked Questions
Clear answers to common questions to help you use this calculator confidently.
What are UK Premium Bonds?
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What are UK Premium Bonds?
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Premium Bonds are savings certificates from National Savings & Investments (NS&I) where your money is entered into monthly draws for prizes instead of earning interest.
What are the odds of winning a Premium Bond prize?
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What are the odds of winning a Premium Bond prize?
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Each £1 bond has a 1 in 22,000 chance of winning any prize each draw. Odds are higher for smaller prizes (£25-£50) and lower for jackpots (£1 million+).
How are Premium Bonds drawn and how often?
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How are Premium Bonds drawn and how often?
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NS&I holds one electronic draw per month (12 draws a year). All held bonds enter automatically; no selection required. Prize draws are independent and random.
Is the expected return from Premium Bonds good compared to savings accounts?
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Is the expected return from Premium Bonds good compared to savings accounts?
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The prize fund rate (3.8% as of 2026) is a mean across all bonds — it is pulled upward by the two £1 million jackpots, so most holders receive less than that in a given year, and some receive nothing. A savings account pays every saver the same known rate; Premium Bonds spread the same-size pool unevenly by chance. Choose based on risk preference, not a guaranteed return.
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