Business Outstanders

Lifetime ISA Calculator

Calculate your LISA growth, government bonus, and see how much you could have for your first home or retirement.

UK Government rules • 25% bonus • Updated March 2026
LISA Rules 2025/2026: Open to ages 18-39. You can contribute up to £4,000 per year until age 50. Government adds 25% bonus (up to £1,000/year). Use for first home (under £450,000) or retirement (withdraw tax-free at 60+).

Your LISA Details

years
18 30 45 60
You must be 18-39 to open a LISA. Contributions stop at 50.
£
£0 £15k £30k £50k
£
£0 £1k £2.5k £4k
Max annual contribution is £4,000 (£333/month)
% AER
0% 3% 6% 10%
Cash LISA rates: 2-5% | Stocks & Shares LISA: 4-8% historically
£
£0 £200k £400k £600k
Property must be under £450,000 for LISA first-time buyer use

Your LISA Projection

Total including Government Bonus £45,250
Your Contributions £36,000
Government Bonus £9,000
Interest Earned £250
Years to Goal 5

How Your LISA Grows

Your Money
Gov Bonus
Your contributions: 80% Government bonus: 20%
Year Your Contributions Gov Bonus Interest Total

Key LISA Rules

Open between 18-39
Contribute up to £4,000/year
25% bonus (max £1,000/year)
Use for first home under £450k
Withdraw tax-free at 60+
25% withdrawal penalty before 60 (except first home)

LISA vs Other Accounts

Cash LISA

Safe, guaranteed returns, lower interest (2-5%)

Best for: Short-term (under 5 years)

Stocks & Shares LISA

Higher potential returns, but value can go down

Best for: Long-term (5+ years)

Help to Buy ISA

Closed to new accounts, lower bonus, smaller limit

Existing holders only

How the Lifetime ISA Works

1

Open a LISA

Aged 18-39. Choose Cash or Stocks & Shares LISA with a provider.

2

Contribute up to £4,000/year

Pay in up to £4,000 each tax year until you're 50. Monthly or lump sum.

3

Get 25% Government Bonus

Government adds 25% on top of your contributions (max £1,000/year).

4

Use for First Home

Buy your first home (under £450,000) - bonus included.

5

Or Save for Retirement

Withdraw tax-free from age 60 - bonus included.

⚠️

Penalty for Other Withdrawals

25% withdrawal charge (covers bonus + some of your money).

Frequently Asked Questions

Can I open a LISA if I'm over 40?

No, you must open a LISA between ages 18-39. However, if you already have one, you can continue paying in until age 50.

What's the maximum I can save in a LISA?

You can contribute £4,000 per year. If you start at 18 and contribute max until 50, that's £128,000. With 25% bonus, total contributions + bonus = £160,000 plus interest.

Can I use LISA with other help to buy schemes?

Yes, you can use LISA alongside Shared Ownership schemes. You cannot use it with the old Help to Buy ISA (if you have both, you can only use one for purchase).

What happens if I withdraw for non-qualifying reasons?

You pay a 25% withdrawal charge. This means if you withdraw £10,000, you only get £7,500 (the charge recovers the bonus plus some of your money).

Can I have both a Cash LISA and Stocks & Shares LISA?

Yes, but total contributions across both cannot exceed £4,000 per year. The £20,000 total ISA allowance also applies.

Is the LISA bonus paid automatically?

Yes, providers claim the bonus from HMRC and it's usually added 4-8 weeks after your contribution.

Important: This Lifetime ISA calculator provides estimates based on current UK government rules (2025/2026 tax year). Interest rates are variable for cash ISAs and investments can go down as well as up for Stocks & Shares LISAs. Always check with your provider and consider seeking financial advice. Business Outstanders is not a financial advisor.