Lifetime ISA (LISA) Calculator
Calculate how quickly you can save for your first home or retirement using a Lifetime ISA. Track your contributions, compound interest, and the 25% government bonus paid up to age 50.
Last updated: May 2026
Must open before 40.
Max £333/mo (£4k/yr) to get max bonus
Cash LISA: ~4%. S&S LISA: ~7%.
Total LISA Value at Age 30
Your Contributions
£19,980
Govt 25% Bonus
+£4,995
You can use this full amount penalty-free towards a first home worth up to £450,000 in the UK.
Reviewed by Vikram Malhotra
•Mortgage Specialist & Ex-BankerWith over 15 years in retail banking, Vikram provides deep insights into bank-specific interest rate tiering and processing fee structures for home and personal loans. All mathematical models and regulatory data points have been verified for the current 2026 fiscal period.
What is a Lifetime ISA (LISA)?
A Lifetime ISA (LISA) is a UK savings account designed to help people buy their first home or save for retirement. You must be aged between 18 and 39 to open one.
The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year. You can contribute a maximum of £4,000 each tax year until you turn 50. You can hold cash or stocks and shares in your LISA.
How to use this calculator
- 1Select Your Goal — Choose whether you are saving for your first home or for retirement at age 60.
- 2Set Your Timeline — Input your current age and the age you plan to buy a home (or 60 for retirement).
- 3Plan Contributions — Enter your monthly deposit. Maximize the bonus by depositing £333/month (£4,000/year).
- 4See The Free Money — The calculator instantly adds the 25% government bonus and compounds the interest over your chosen timeframe.
Formula & example
Annual Government Bonus = Total Yearly Contribution × 25% (Max £1,000)
Example: Save £4,000 a year for 5 years.
- Your Contributions: £20,000
- Government Bonus (25%): £5,000
- Total Saved (before interest): £25,000
Benefits
Unbeatable 25% Return
Guaranteed 25% top-up on your cash from the government before any investment growth.
Tax-Free Growth
All interest and investment capital gains within the LISA are completely tax-free.
Dual Purpose
Can be used as a stepping stone onto the property ladder, or left to compound into a tax-free retirement pot alongside your pension.
Use cases
First-Time Buyers
The most popular use. Accelerates your deposit savings for properties up to £450,000.
Self-Employed Retirement
A great alternative or addition to a pension for self-employed individuals who lack employer matches.
Maxing Out Allowances
Using £4k of your £20k annual ISA allowance strategically for the guaranteed bonus.
Frequently asked questions
What happens if I withdraw the money early?+
If you withdraw money for any reason other than buying your first eligible home, terminal illness, or reaching age 60, you will face a 25% government withdrawal charge. This penalty recoups the government bonus and also takes a slice (~6.25%) of your own contributions.
Can I use it to buy a house with a partner?+
Yes! If you are both first-time buyers, you can each use your own LISA and combine the bonuses to buy a property together (the property must still be under the £450k limit).
Is it better than a Help to Buy ISA?+
Help to Buy ISAs are no longer open to new applicants. The LISA has a higher annual limit (£4,000 vs £2,400) and the bonus is paid monthly rather than at completion, allowing the bonus itself to earn interest.