Project your LISA savings including the 25% government bonus for first home purchase or retirement.
Must be 18-39 to open, can contribute until 50
Maximum £4,000 per year
The government adds 25% to your contributions, up to £1,000 bonus per year.
Projected LISA Value
£66,034
After 10 years
Your Contributions
£40,000
Gov. Bonus
£10,000
Growth
£16,034
Total Value
£66,034
Early Withdrawal Penalty
If withdrawn early (not for first home or after 60): 25% charge of £16,508 would apply, leaving you with £49,525.
| Year | Age | Contributed | Bonus | Balance |
|---|---|---|---|---|
| 1 | 26 | £4,000 | £1,000 | £5,250 |
| 2 | 27 | £8,000 | £2,000 | £10,763 |
| 3 | 28 | £12,000 | £3,000 | £16,551 |
| 4 | 29 | £16,000 | £4,000 | £22,628 |
| 5 | 30 | £20,000 | £5,000 | £29,010 |
| 8 | 33 | £32,000 | £8,000 | £50,133 |
| 9 | 34 | £36,000 | £9,000 | £57,889 |
| 10 | 35 | £40,000 | £10,000 | £66,034 |
The Lifetime ISA (LISA) was introduced to help younger people save for their first home or for retirement. The 25% government bonus is one of the most generous savings incentives available, effectively giving you an immediate 25% return on your contributions before any investment growth. This makes it a powerful tool for long-term savings goals.
To use your LISA for a property, it must cost £450,000 or less, you must be a first-time buyer, and the account must be open for 12 months. If you don\'t buy a home, you can withdraw the funds tax-free after age 60, making it a flexible alternative to a pension. For more detailed comparisons, see our Pension Calculator.
The 25% Early Withdrawal Penalty
Be aware: if you withdraw funds for any reason other than a first home purchase or after age 60, a 25% penalty applies to the whole amount. This means you lose the government bonus and a portion of your original capital. For example, withdrawing £1,000 would incur a £250 penalty, leaving you with just £750.
The Lifetime ISA has specific limits and bonuses that are important to understand when planning your savings. These core figures define how the account works. You can model different scenarios using the Compound Interest Calculator to see how these numbers affect long-term growth.
£4,000
Annual Contribution Limit
25%
Government Bonus Rate
£1,000
Max Annual Government Bonus
How to use this Calculator Site tool
Enter your current age, how much you plan to save each year, and your expected investment growth rate. The calculator will project your total savings, including the 25% government bonus, up to age 50 (when contributions must stop) or age 60 (for retirement). You can switch between saving for a 'First Home' or 'Retirement' to see how the timeline affects your final balance.
Building a savings habit is one of the most effective ways to improve your financial wellbeing. You may also find our Compound Interest Savings Calculator useful for related calculations.
For a broader view of your finances, try the Compound Interest Calculator or the Take-Home Pay Calculator. All of our calculators are free to use and updated for the 2026/27 tax year where applicable. For official LISA rules, visit GOV.UK Lifetime ISA guide.
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