Skip to content
AllCalcHub

Lifetime ISA Calculator

Add the 25% government bonus to Lifetime ISA savings for a first home or retirement.

About the Lifetime ISA Calculator

You can open a Lifetime ISA aged 18–39 and pay in up to £4,000 a year until 50. The government adds 25% (up to £1,000 a year). Money can be used tax- and penalty-free for a first home costing up to £450,000, or from age 60. Other withdrawals pay a 25% charge, which is 6.25% of your own money.

The formula

Bonus = 25% of contributions, max £1,000 a year

Worked example

Example: LISA value = £33,828

  1. Inputs: Current age: 28 years; Save each year: £4,400; Years to save: 6 years; Expected return (or savings rate): 4%.
  2. Formula: Bonus = 25% of contributions, max £1,000 a year
  3. Result: LISA value = £33,828
  4. Government bonus: £6,000

Questions people ask

Does it count toward my ISA allowance?

Yes, LISA contributions use up to £4,000 of the £20,000 allowance.

Why does the 25% charge cost more than the bonus?

It's 25% of the whole pot including the bonus: £1,000 + £250 bonus loses £312.50.

Sources