... Lifetime ISA Calculator UK 2025/26 — 25% Bonus & First Home
Free · 2025/26 · UK

Lifetime ISA (LISA) Calculator 2025/26

25% government bonusMax £1,000/yr bonusFirst home & retirementWithdrawal penalty shown

Calculate how much you’ll accumulate in a Lifetime ISA with the government’s 25% bonus, what it means for buying your first home, and how it compares to saving in a pension or standard ISA.

Savings Growth
First Home Purchase
Early Withdrawal Penalty
LISA Savings Calculator
2025/26
£
Maximum £4,000/year (bonus capped at £1,000/year)
%
Total LISA Value
Total Government Bonus
Saving Years
LISA Growth Breakdown
LISA First Home Purchase
2025/26
£
£
Maximum property price £450,000
£
Total Deposit
Deposit %
LISA Eligible?
Home Purchase Breakdown
Early Withdrawal Penalty Calculator
2025/26
£
The 25% withdrawal charge means you get back less than you put in
Withdrawal Charge (25%)
You Receive
Effective Loss
Why You Lose More Than the Bonus

How the Lifetime ISA works

You can open a LISA between the ages of 18 and 39 and save up to £4,000 per year. The government adds a 25% bonus (up to £1,000/year) until you turn 50. The money can be used tax-free for either a first home purchase (property up to £450,000) or retirement from age 60.

Withdrawing for any other reason triggers a 25% withdrawal charge — and because 25% is applied to the total balance (including the bonus), you actually lose more than the bonus you received. For every £100 put in, you’d get back around £93.75 after a penalty withdrawal.

LISA vs pension — the key comparison

For basic-rate (20%) taxpayers, a pension and a LISA both effectively give 25% relief on contributions. But a pension contribution gets employer contributions on top (often 3–5%), and pension withdrawals are largely tax-free via the 25% tax-free lump sum. For higher-rate taxpayers, a pension is usually superior as contributions get 40% relief. The LISA wins if you have no workplace pension, no employer contributions, and specifically want to buy a first home.

Frequently asked questions

Can I use a LISA alongside Help to Buy?
Help to Buy equity loans are no longer available for new applications (the scheme closed in March 2023). You can still use a LISA alongside a standard repayment mortgage and the government guarantee scheme (Mortgage Guarantee Scheme). You cannot combine a LISA with a Help to Buy ISA for the same property — if you have both, you choose which to use for the purchase (most people choose the LISA as it offers better terms).
What happens to my LISA if my property costs more than £450,000?
If you buy a property over £450,000, you cannot use the LISA for that purchase. You can either leave the money in the LISA for retirement (from age 60), transfer to another ISA type (the withdrawal charge applies), or wait. The £450,000 limit has not been updated since the LISA launched in 2017, which means it now excludes a large number of properties in London and the South East — a widely criticised flaw in the scheme.

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