Lifetime ISA Calculator

Calculate LISA growth with the 25% government bonus. For first homes (up to £450K) or retirement (60+).

Last updated: April 2026 · Source: GOV.UK

£

Max £333/month

£

Projected LISA Balance at 50

£246,755.03

25 years of contributions

Your Deposits

£99,900.00

Government Bonus (25%)

£24,975.00

Investment Growth

£121,880.03

LISA: 25% government bonus on up to £4,000/year. Must be 18-39 to open. Use for first home (up to £450,000) or retirement (age 60+). Early withdrawal for other reasons incurs a 25% penalty.

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

The Lifetime ISA allows contributions of up to £4,000 per tax year, on which the government pays a 25% bonus of up to £1,000 per year. The bonus is paid monthly within 4-6 weeks of each contribution. You must be aged 18-39 to open a LISA, and can contribute until age 50. The LISA can be used to buy a first home worth up to £450,000 or withdrawn penalty-free after age 60.

For property purchase, the calculator compounds contributions plus bonus over the saving period. Contributing £4,000/year for 5 years gives £20,000 in contributions plus £5,000 in government bonuses, totalling £25,000 before growth. With investment returns on a Stocks and Shares LISA, the total could reach £28,000-£30,000. The full amount including all bonuses and growth can be used toward the deposit on a first home.

Early withdrawal for purposes other than first home purchase or retirement incurs a 25% government withdrawal charge on the total amount, not just the bonus. This effectively creates a 6.25% loss on your own contributions: depositing £1,000 receives a £250 bonus (total £1,250), but the 25% withdrawal charge takes £312.50, leaving you with only £937.50 — less than you put in. The calculator shows the penalty impact clearly to help with decision-making.

Lifetime ISA for first home deposit over 4 years

  1. Annual contribution: £4,000 (maximum)
  2. Government bonus each year: £4,000 x 25% = £1,000
  3. After 4 years: £16,000 contributions + £4,000 bonus = £20,000
  4. With 5% growth on a Stocks and Shares LISA: approximately £21,600
  5. If withdrawn early (not for home/retirement): 25% charge on £21,600 = £5,400 penalty, receiving only £16,200

Source: GOV.UK

Frequently Asked Questions

What does the Lifetime ISA Calculator do?
Calculate LISA growth with the 25% government bonus. For first homes (up to £450K) or retirement (60+). All calculations are performed in your browser using official UK rates and thresholds.
Is this calculator suitable for financial decisions?
This calculator provides estimates for guidance only. Investment returns are not guaranteed and your capital is at risk. Consider seeking independent financial advice before making investment decisions.
Are ISA contributions tax-free?
Yes. The annual ISA allowance for 2025/26 is £20,000. Any interest, dividends or capital gains within an ISA are completely tax-free.