Calculate the future value of your Lifetime ISA (LISA), including the 25% government bonus on contributions.
25% government bonus, £4,000 annual contribution limit (2025/26, example)
A Lifetime ISA (LISA) calculator projects how your LISA balance could grow, including the government bonus of 25% added on top of your own contributions — one of the most valuable savings incentives available in the UK, designed to help people save for either a first home or retirement.
Each month, your contribution earns an immediate 25% government bonus — so a £250 contribution becomes £312.50 once the bonus lands. This combined amount (contribution plus bonus) then grows alongside your existing balance at the entered growth rate, compounding monthly.
Formula: Each month, Growth = Balance × (Annual Rate ÷ 12); Government Bonus = Monthly Contribution × 25%; Balance = Balance + Growth + Monthly Contribution + Government Bonus. This repeats for the number of months entered.
Example: Starting with a £1,000 balance and contributing £250/month (£3,000/year, within the £4,000 annual limit, example — check the current limit) at an expected 5% annual growth rate (example rate) over 10 years, you'd contribute £30,000 in total, receive £7,500 in government bonuses (25% of your contributions), and gain roughly £11,673 in tax-free growth — giving a final tax-free LISA balance of around £50,173. (Note: this example is for illustration purposes only — actual returns depend on the LISA type and investment performance, and the bonus and limits shown are examples.)
The Lifetime ISA is available to UK residents aged 18-39 when opened, and you can contribute until age 50. The government adds a 25% bonus on top of whatever you pay in, up to an annual contribution limit (£4,000 for 2025/26, example — check the current limit), meaning the maximum possible annual bonus is £1,000. Money in a LISA (including the bonus and any growth) can be withdrawn tax-free in two main circumstances: to buy your first home (the property must typically be below a certain value, example — check the current property price cap), or from age 60 onwards for any purpose, including retirement. Withdrawing for any other reason (other than terminal illness) typically incurs a government withdrawal charge — commonly 25% of the amount withdrawn — which can mean getting back less than you originally paid in, since the charge effectively claws back the bonus and a small amount of your own money too. Because of this, a LISA works best when you're confident you'll either buy a first home or wait until 60 — it's less suitable as a general "just in case" emergency fund compared to a regular ISA. Like the general ISA allowance, LISA contributions count toward (and are part of) your overall £20,000 annual ISA allowance, not in addition to it.
UK residents aged 18 to 39 (inclusive) can open a Lifetime ISA. Once opened, you can continue contributing until your 50th birthday, and the account continues to grow and earn bonuses on contributions made before that age limit.
The government adds a 25% bonus on top of your contributions, up to the annual contribution limit (£4,000 for 2025/26, example — check the current limit), meaning a maximum bonus of £1,000 per year if you contribute the full amount. The bonus is added to your account, typically on a regular basis (such as monthly), and then grows along with the rest of your balance.
A government withdrawal charge typically applies (commonly 25% of the withdrawal amount), which effectively recovers the bonus plus a small additional amount from your own contributions — meaning you could get back less than you paid in. This charge doesn't apply if you're withdrawing to buy your first home (subject to conditions), from age 60, or in cases of terminal illness.
No. The amount you pay into a Lifetime ISA counts toward your overall annual ISA allowance (£20,000 for 2025/26, example) — it's not an additional allowance on top. However, within that overall limit, the LISA itself has its own separate annual contribution cap (£4,000, example).
Yes, typically. To use LISA funds (without the withdrawal charge) toward a first home, the property generally must be below a specified value (example — check the current property price cap, as this can vary and may differ for properties in different parts of the UK). Check current rules before relying on your LISA for a specific purchase.
This depends on your time horizon and risk tolerance. A Cash LISA behaves like a savings account — stable, with interest rates that move with the savings market. A Stocks & Shares LISA invests your money, offering potentially higher long-term growth but with the value able to fall as well as rise. For money you expect to need within a few years (e.g., for a house purchase), many people prefer the stability of cash; for longer horizons (e.g., toward age 60), some consider stocks and shares — consider speaking with a financial adviser for personalised guidance.
Disclaimer: The information, rates, bonuses, and limits provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The 25% government bonus, annual contribution limits, age eligibility rules, property price caps, and withdrawal charges are set by the government and reviewed periodically, and may have changed since this page was published. The growth rate used is an example only — investment values can fall as well as rise. Always check current rules on the official government website and consult a qualified financial adviser before making decisions about a Lifetime ISA.