Lifetime ISA (LISA) Calculator 2024/25
Calculate how much your Lifetime ISA will be worth with the 25% government bonus and investment growth. Covers first home purchase (property ≤ £450,000) and retirement use cases, with a year-by-year savings table and comparison to a standard ISA.
Lifetime ISA Calculator
25% government bonus on up to £4,000/year — first home or retirement at 60+
Must be 18-39 to open a LISA. Contributions allowed until age 49.
Maximum £4,000/year — government adds 25% bonus (max £1,000/year)
Stocks and Shares LISA: 5-7% historical average. Cash LISA: 2-4% typical.
LISA can only be used for properties at or below £450,000
vs Standard ISA (same contribution, no bonus)
Year-by-Year Savings Table
20years — 25% government bonus on each year's contribution
| Year | Age | Your contribution | Bonus | Growth | Total |
|---|---|---|---|---|---|
| 1 | 30 | £4,000 | £1,000 | £0 | £5,000 |
| 2 | 31 | £4,000 | £1,000 | £250 | £10,250 |
| 3 | 32 | £4,000 | £1,000 | £513 | £15,763 |
| 4 | 33 | £4,000 | £1,000 | £788 | £21,551 |
| 5 | 34 | £4,000 | £1,000 | £1,078 | £27,628 |
| 6 | 35 | £4,000 | £1,000 | £1,381 | £34,010 |
| 7 | 36 | £4,000 | £1,000 | £1,700 | £40,710 |
| 8 | 37 | £4,000 | £1,000 | £2,036 | £47,746 |
| 9 | 38 | £4,000 | £1,000 | £2,387 | £55,133 |
| 10 | 39 | £4,000 | £1,000 | £2,757 | £62,889 |
| 10 more years — final pot £165,329.77 | |||||
Own contributions
£80,000
Government bonus
£20,000
Standard ISA (no bonus)
£132,264
LISA final pot
£165,329.77
5 Lifetime ISA Planning Tips
- Open before age 40 — even if you are not sure: You must open a LISA before your 40th birthday. Opening it costs nothing and keeps your options open. You can decide whether to contribute later.
- First home — combine with Help to Buy equity loan: The LISA deposit can be combined with the Help to Buy equity loan (where available) and a mortgage for a larger total purchase fund. Check current government scheme availability.
- The penalty costs you around 6.25% of your own money: A 25% penalty on the full pot (including the bonus) means you get back less than you put in if you withdraw outside qualifying events. Never put money in a LISA that you might need before 60.
- Maximise the £4,000/year for the full £1,000 bonus: The government bonus is effectively a 25% instant return on your contribution. Putting £4,000 in at the start of each tax year can increase your total return through earlier compounding.
- The LISA counts toward your £20,000 ISA limit: If you contribute £4,000 to your LISA, you can still contribute £16,000 to other ISAs (Cash, Stocks and Shares, Innovative Finance) in the same tax year.
How the Lifetime ISA Works
You can open a LISA between ages 18 and 39 and contribute up to £4,000 per year until age 49. The government adds a 25% bonus (up to £1,000/year) directly to your account. The LISA can be used tax-free for a qualifying first home purchase or from age 60 for retirement.
First Home Purchase Rules
- Property must cost £450,000 or less
- You must be a first-time buyer
- The LISA must have been open for at least 12 months
- Funds are claimed by your conveyancer at completion
The Withdrawal Penalty Explained
A 25% penalty on the full withdrawal amount means you lose the bonus and approximately 6.25% of your own money. Example: contribute £4,000, receive £1,000 bonus = £5,000. Withdraw outside qualifying events: pay £1,250 penalty, receive £3,750 — losing £250 of your own contribution.
LISA vs Pension
A pension offers upfront income tax relief (20%–45%) while a LISA offers a flat 25% bonus. For basic rate taxpayers saving for retirement, the benefit is similar. For higher rate taxpayers, a pension generally wins. However, the LISA has no employer contribution requirement, and the money is accessible at 60 (vs 55–57 for pensions). Consider both.