How to use the Lifetime ISA calculator
- 1 Enter your age; you must open a LISA between 18 and 39.
- 2 Enter your yearly payment, up to £4,000.
- 3 Enter any current balance and the growth rate.
- 4 Enter the age you will use it.
Worked example
A 25-year-old paying £4,000 a year for 7 years at 5%, buying at 32. You pay in £28,000 and receive £7,000 of bonus. The LISA could be worth about £42,746 for your deposit. Withdrawing for another reason would leave about £32,059.
LISA rules and what replaces it
- Opening: you must be 18 to 39 to open one, and can pay in until 50.
- First home: the home must cost £450,000 or less, be bought with a mortgage through a conveyancer, and the account must be at least 12 months old.
- Charges: other withdrawals before 60 lose 25%; on a home above £450,000 the charge has been 20% since 29 October 2026.
- What next: a First Time Buyer ISA replaces the LISA for new savers from April 2029.
Compare with a regular ISA, and check what you could borrow with the Mortgage Affordability Calculator. Saving for retirement instead? Compare with a pension using the Pension Tax Relief Calculator.
Features
25% bonus
Up to £1,000 a year from the government.
Limits built in
£4,000 a year, payments until 50.
Withdrawal charge
Shows the value after the 25% charge.
When to use it
First home
Save a deposit faster. See your borrowing with the Mortgage Affordability Calculator.
Retirement
Build a tax-free pot from 60. Compare with the ISA Calculator.
Self-employed
Use as an alternative pension. Check first-time buyer relief with the Stamp Duty Calculator.
Couples
Each partner can have a LISA. Compare with the Pension Tax Relief Calculator.
Related Savings and Investing tasks
Frequently asked questions
What is a Lifetime ISA?
An ISA for people aged 18 to 39 to save for a first home or retirement, with a 25% government bonus.
How much can I pay in?
Up to £4,000 a year, which counts toward your £20,000 ISA allowance.
What can I use it for?
A first home costing £450,000 or less, or withdrawals from age 60, or if terminally ill.
What is the withdrawal charge?
25% of the amount withdrawn for other reasons, which means losing the bonus and a bit more. If you buy a home that costs more than the £450,000 limit, the charge has been 20% instead of 25% since 29 October 2026.
Cash or stocks and shares?
Both are available. Stocks and shares suit longer timeframes.
Can I use it with a mortgage?
Yes, through a conveyancer, at least 3 months after your first payment.
Is the £450,000 limit changing?
No rise was announced. Instead, the Budget on 28 October 2026 confirmed a new First Time Buyer ISA that replaces the Lifetime ISA for new savers from April 2029, with up to £4,000 a year and a 25% bonus.
Does it affect benefits?
It can count as savings for means-tested benefits.
Can I have a LISA and a Help to Buy ISA?
You can hold both, but you can only use the bonus from one to buy your first home.
What happens after 50?
You can no longer pay in or get the bonus, but the account stays open and keeps growing.
Can I transfer a LISA?
Yes, to another provider without losing the bonus.
How soon is the bonus paid?
The government pays the bonus monthly, usually within a few weeks of your payment.
Is the LISA protected?
Cash LISAs are covered by the FSCS up to £120,000 per bank.
Is a LISA better than a pension?
For basic rate taxpayers, the 25% bonus matches pension tax relief, and withdrawals after 60 are tax-free. But you lose employer contributions, which a workplace pension gives.
Can I use it with a partner?
Yes. Two first-time buyers can each use their LISA for the same home, doubling the bonus available.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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