Lifetime ISA Calculator
Your Lifetime ISA pot with the 25% government bonus — contributions, bonus, growth, deposit as a share of your target home (alone or with a partner), the £450,000 cap check, the withdrawal penalty and the maximum lifetime bonus.
| Eligibility | — |
|---|---|
| Your contributions | — |
| Government bonus | — |
| Growth | — |
| Pot after the period | — |
| With a partner’s LISA | — |
| Deposit as % of the target price | — |
| House price cap check | — |
| Penalty if withdrawn for another reason | — |
| Maximum lifetime bonus (to age 50) | — |
In short
A Lifetime ISA, opened between 18 and 39, takes up to £4,000 a year (within the £20,000 ISA allowance) and the government adds a 25% bonus — up to £1,000 a year, or £33,000 over a lifetime. The money can be used penalty-free for a first home costing up to £450,000 after 12 months, or from age 60; any other withdrawal costs 25% of the amount taken, which claws back the bonus plus 6.25% of your own money.
Who this is for: UK first-time buyers aged 18–39 and basic-rate savers planning for retirement.
Lifetime ISA rules
- Who: open between 18 and 39, pay in until 50. Up to £4,000 a year (part of the £20,000 ISA allowance) earns a 25% government bonus — £1,000 a year, up to £33,000 if you start at 18.
- Penalty-free use: a first home costing £450,000 or less (after 12 months), from age 60, or terminal illness. Anything else costs a 25% withdrawal charge — you lose the bonus and 6.25% of your own money.
- Couples: two first-time buyers can each use a LISA on the same home — £2,000 of bonus a year between them.
- Cash vs stocks and shares: cash for a purchase within about five years; stocks and shares for retirement.
- Watch-outs: the £450,000 cap has not risen since 2017 and excludes much of London; if you may buy above it, a normal ISA avoids the penalty risk. The government has consulted on reforming the LISA — check for changes before relying on the cap.
See also: UK Stamp Duty (SDLT) Calculator.
Assumptions
- Contributions capped at £4,000 a year until age 50; 25% bonus on each year's contributions; growth applied annually.
- Deposit % = pot ÷ target price; partner assumed to save identically.
- Penalty = 25% of the pot; maximum bonus = £1,000 × years from now to 50.
Worked example
Contributions £20,000 over five years earn £5,000 of bonus; with 4% growth the pot reaches about £28,165 — 9.4% of a £300,000 home alone and 18.8% with a partner's matching LISA (£56,300 combined). The property is under the £450,000 cap. Withdrawing for any other reason would cost about £7,040, returning £21,120 — still slightly more than the £20,000 paid in only because of the growth. Paying in the maximum until 50 would earn another £23,000 of bonuses.
Frequently asked questions
How much is the Lifetime ISA bonus?
25% of what you pay in, up to £1,000 a year on £4,000 — paid monthly by HMRC into the account.
Can I use a Lifetime ISA for a house over £450,000?
No — withdrawing for a property above the cap triggers the 25% penalty. The limit applies to the purchase price, not your share.
What is the Lifetime ISA withdrawal penalty?
25% of the amount withdrawn for non-qualifying reasons, which claws back the bonus and 6.25% of your own contributions.
LISA or pension for retirement?
Take any employer pension match first. For basic-rate taxpayers a LISA (25% bonus, tax-free out) roughly matches a pension (20% relief, 25% tax-free then income tax); higher-rate taxpayers do better in a pension.
Can I have a LISA and a Help to Buy ISA?
You can hold both but only use the bonus from one for a home purchase; most people transfer the Help to Buy ISA into the LISA.
What if I never buy a home?
The money stays invested and can be taken penalty-free from 60 — a LISA works as a retirement top-up for basic-rate taxpayers.
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