Lifetime ISA Calculator
Get a 25% government bonus on savings for your first home or retirement
Last updated: August 2026
Your Details
When you'll withdraw (min 60 or first home)
Contributions
What is in the account today, if you already have one. Leave at 0 if you are starting from scratch. This money earns growth but no new bonus, because its bonus was paid when it went in, and it does not use up this year's £4,000allowance.
Contributions made since 6 April. These do use the allowance, so only £4,000 is left for the rest of this year.
Annual: £2,400
Typical: 4-7% for investments
Purpose
Total LISA Value at 60
£245,203
Including £15,000 government bonus
Years paying in
25
+ 10 years of growth
Contributions stop at 50, the LISA age limit, but the pot stays invested and keeps growing until you withdraw at 60.
Free Government Money!
The government adds 25% bonus on everything you save (max £1,000/year). Save £4,000, get £1,000 free = £5,000 total per year!
Bonus stops at age 50
Annual Allowance Usage
LISA limit: £4,000/year (counts toward the £20,000 ISA allowance). An existing balance is not counted here, only what you pay in this year.
Unauthorised Withdrawal Charge
Withdrawing for any reason other than a first home or retirement (age 60+) triggers a 25% government charge on the amount you withdraw. It is not a charge on your whole balance, and you can leave the rest of the pot untouched.
25% charge on £10,000
-£2,500
You'd receive
£7,500
Left in the LISA
£235,203
If you closed the account entirely, the charge on the full £245,203 would be £61,301, leaving £183,902.
Projected Growth
Understanding Lifetime ISAs
✅ The Good
- • Free 25% government bonus
- • Up to £1,000 bonus per year
- • Tax-free growth (like all ISAs)
- • Perfect for first-time buyers
- • Great retirement booster
❌ The Bad
- • 25% charge on any unauthorised withdrawal
- • Must be 18-39 to open
- • Only £4,000/year limit
- • Property max £450k
- • Must be first-time buyer
📋 Key Rules
- • Open between ages 18-39 (but can contribute until 50)
- • Get 25% bonus up to age 50
- • Max contribution: £4,000/year
- • Penalty-free withdrawal: First home OR age 60+
- • Counts toward £20,000 ISA allowance
Eligibility
- ✓ First-time buyer (never owned property anywhere)
- ✓ Property price up to £450,000
- ✓ Property in the UK
- ✓ You intend to live there
- ✓ Account open for 12+ months
💡 How It Works
Step 1: Your conveyancer requests the LISA funds
Step 2: Provider pays directly to conveyancer (within 30 days)
Step 3: Includes your savings + bonus + growth
You cannot withdraw the LISA money yourself - it goes straight to your conveyancer.
LISA allowance: £4,000 per tax year (6 April - 5 April) | 25% government bonus | Rates for 2026/27
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Reviewed by
Alexandre Bernier, LLM (UK), CFP®, CIM®, PFP®. Financial planner with 18 years in banking and wealth management, holding a UK master of laws and the Canadian CFP®, CIM® and PFP® designations. Writes and reviews every calculator and article on FinanceToolz.
Last updated: August 2026. How figures are sourced, reviewed and corrected is set out in our editorial policy. This is general information, not regulated financial advice.
Sources
Every rate and threshold used by this calculator is taken from the official pages below. If a figure here disagrees with one of these, the official page is right, please tell us.