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Lifetime ISA Calculator

See what a Lifetime ISA grows to with the 25% government bonus, for your first home or for retirement from 60, and what the 25% charge would cost if you took the money out for anything else.

£

A month; up to £4,000 a year

£

Up to £450,000

More options· 4% growth
£

With bonuses so far

%

A year, after charges

Your Lifetime ISA when you buy, in 5 years

£16,545

Including £3,000 of government bonus

You pay in
£12,000
Bonus
£3,000
Growth
£1,545

That’s £3,309 more than the same savings in an ordinary ISA. Taken out for anything else, it would be £12,409 after the 25% charge.

What this means

For every £4 you pay in, the government adds £1, up to £1,000 a year. You can pay in until you’re 50, so the most bonus anyone can get is £32,000.

To use it for a home, it must be your first, cost £450,000 or less, and be bought with a mortgage at least 12 months after your first payment. Your conveyancer gets the money from your provider. Taking money out for anything else costs 25% of what you take, so you’d get back less than you paid in.

Next step

Year by year

AgePaid inBonusBalance
26£2,400£600£3,055
27£4,800£1,200£6,231
28£7,200£1,800£9,535
29£9,600£2,400£12,971
30£12,000£3,000£16,545

How it grows

Until you buy
£16,545£8,272£0
2627282930
You pay inBonusGrowth
Assumptions in this estimate
  • The same payment every month, with the bonus added as you pay in (in practice it arrives a few weeks later), and growth of 4% a year after charges. Cash Lifetime ISAs pay interest; stocks and shares ones can fall as well as rise.
  • What you pay in counts towards your £20,000 ISA allowance for the tax year.
  • Couples buying together can each use their own Lifetime ISA, and each get the bonus.
  • Savings in a Lifetime ISA count as capital for Universal Credit and other means-tested benefits.
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How the calculator works

  1. Payments: the same amount each month, up to £4,000 a tax year. Payments stop at 50.
  2. Bonus: 25% of each payment, added as you pay in.
  3. Growth: your payments and the bonus grow at the rate you choose, after charges, until you buy or reach 60.
  4. Checks: whether you can still open one, whether the home is under the £450,000 limit (taking the money out for a dearer home costs 20%), and what you’d get back after the 25% charge if you took the money out for anything else.

Lifetime ISA rules for 2026/27

Rule Limit
Age to open 18 to 39
Pay in Up to £4,000 a tax year, until 50
Government bonus 25%, up to £1,000 a year
First home £450,000 or less, with a mortgage, 12 months after opening
Free withdrawals From 60, or if you’re terminally ill
Other withdrawals 25% charge (20% for a first home over £450,000)
ISA allowance Counts towards your £20,000 a year

Example

At 25, paying in £200 a month for 5 years at 4% growth: you pay in £12,000, the bonus adds £3,000 and growth about £1,545, so you’d have £16,545 towards your deposit. The same savings in an ordinary ISA would be about £13,236.

Home or retirement?

For a first home, the bonus is hard to beat: 25% is more than any savings rate. For retirement, a workplace pension usually wins, because your employer pays in too and you get tax relief at your highest rate. A Lifetime ISA can sit alongside a pension once you’ve had your employer’s full match.

Learn more

See our first-time buyer guide, where to invest for the order to use each account, and the stamp duty calculator for the tax when you buy.

Last updated

Frequently asked questions

How does the Lifetime ISA bonus work?

The government adds 25% to what you pay in: £1 for every £4. You can pay in up to £4,000 a tax year, so the bonus is up to £1,000 a year. It is paid into your account monthly, a few weeks after you pay in.

Who can open a Lifetime ISA?

Anyone living in the UK aged 18 to 39. You can keep paying in, and getting the bonus, until the day before your 50th birthday. The most bonus anyone can get is £32,000.

What can I use a Lifetime ISA for?

Your first home, if it costs £450,000 or less, you buy it with a mortgage and your first payment was at least 12 months earlier. Or anything at all from age 60. You can also take the money out without a charge if you are terminally ill.

What is the Lifetime ISA withdrawal charge?

25% of what you take out, for any other reason. Because the bonus was only 25% of what you paid in, the charge takes back more than the bonus: of every £1,000 you paid in, you get back £937.50, plus growth less 25%. From 29 October 2026, taking it out to buy a first home over £450,000 costs 20% instead.

Can my partner and I both use a Lifetime ISA for the same home?

Yes. If you are both first-time buyers, you can each use your own Lifetime ISA, so a couple can get up to £2,000 of bonus a year between them.

Is the Lifetime ISA being replaced?

For new savers, yes. Budget 2026 announced a First Time Buyer ISA from April 2029, with a 25% government bonus on the final balance, up to a maximum of £20,000, paid when you withdraw it for a first home worth up to £450,000. Until then you can still open a Lifetime ISA, and existing accounts keep the current rules.