Lifetime ISA calculator
Lifetime ISA calculator: the bonus, and the charge.
The government adds 25% to what you pay into a Lifetime ISA, up to £1,000 a year, until you turn 50. See what that could add up to, and what it costs to take money out for anything other than a first home or reaching 60.
What does a Lifetime ISA add?
The government adds 25% to what you pay in, up to £1,000 a year, from your first payment until you turn 50. See what that could add up to, and what it costs to withdraw for anything other than a first home or reaching 60.
Your numbers
Withdrawing for another reason
Illustrative value at 50
£0
Assumes the amount withdrawn is your payments plus the bonus, with no growth. Penalty-free withdrawals: towards your first home (costing £450,000 or less, with your first payment made at least 12 months before), from age 60, or if you're terminally ill.
How to read this
Rules at the time of writing: you must be 18 to 39 to open one and make your first payment before 40; you can pay in until 50; the bonus is 25% up to £1,000 a year; withdrawing for any other reason costs 25% of the amount taken, which takes back the bonus and about 6.25% of your own money on top. Because the charge comes off what you take out, getting a set amount in hand means withdrawing more: divide what you need by 0.75, so £3,000 in hand means taking out £4,000. For a first home above the £450,000 price cap the charge is 20% from 29 October 2026, and a new First-Time Buyer ISA is due to replace the Lifetime ISA for new savers from April 2029, so check gov.uk for the current rules. More in the Lifetime ISA explained.
How it works
How the Lifetime ISA works
A Lifetime ISA is for buying your first home or for later life. You can open one between 18 and 39 and pay in up to £4,000 a year until you turn 50. It counts towards your £20,000 ISA allowance.
The bonus
The government adds 25% to what you pay in, so £4,000 becomes £5,000. That’s up to £1,000 a year.
You can hold cash, investments or both.
Taking money out
There’s no charge to buy your first home, from age 60, or if you’re terminally ill.
For anything else there’s a 25% withdrawal charge on the amount you take out.
Why the charge costs more
The charge is 25% of what you withdraw, bonus included. On money with no growth it takes back the whole bonus and 5% on top, from your own money: £1,000 withdrawn returns £750, of which you paid in £800.
More in the Lifetime ISA withdrawal penalty.
Questions
Common questions
Quick answers about the figures. For your own circumstances, gov.uk and your provider have the details.
What if my first home costs more than £450,000?
At the time of writing, the charge for a first home above the £450,000 price cap is 20%, down from 25% from 29 October 2026. Other early withdrawals still carry 25%.
Is the Lifetime ISA closing?
At the time of writing, the government has announced that a new First-Time Buyer ISA will replace it for new savers from April 2029. Existing holders can keep paying in under the current rules. Check gov.uk for the latest.
Lifetime ISA or pension for retirement?
It depends on your tax rate and whether your employer adds to a pension. ISA vs pension sets out the differences.
Rates used
All rates are at the time of writing and were checked at source on 3 November 2026. They’re updated each year on 6 April, and after any Budget that changes them.
| What | 2026/27 | Source |
|---|---|---|
| Who can open one | Aged 18 to 39; pay in until 50 | gov.uk: Lifetime ISA |
| Limit and bonus | Up to £4,000 a year; 25% bonus, up to £1,000 a year | gov.uk: Lifetime ISA |
| Withdrawal charge | 25% for other early withdrawals; 20% for a first home above £450,000 (from 29 October 2026) | gov.uk: Withdrawing from your Lifetime ISA |
Other calculators
New to ISAs?
Read the sixteen articles in order.
Getting Started takes you from the basics to opening your ISA, then the principles that keep you invested and how wealth builds over time.
Go to Getting StartedAll results are illustrations, not forecasts, and not financial advice. They assume steady rates that real markets never deliver. The value of investments can go down as well as up, and you can get back less than you put in. Allowances, tax rates and ISA rules can change, so always check gov.uk for the current figures.
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