Lifetime ISA (LISA) Calculator 2025/26
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.
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.
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.