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