Lifetime ISA calculator
Work out the 25% government bonus on Lifetime ISA savings, what the pot could grow to, and what the 25% charge would leave if you took the money out for something else.
- Government bonus over 5 years
- £3,000
- 25% of the £12,000 you pay in, £200 a month
- You pay in
- £12,000
- up to £4,000 a tax year
- Pot at 30
- £16,185.06
- with 3% growth a year
- Taken out for anything else
- £12,138.79
- after the 25% charge of £4,046.26
You can open a Lifetime ISA if you’re 18 or over and under 40, and pay in until you’re 50. The government adds 25%, up to £1,000 a year. You can take the money out with no charge to buy a first home costing £450,000 or less, at least 12 months after your first payment, or from age 60. Taking it out for anything else costs 25% of what you take out, which is more than the bonus. Growth here is an assumption; cash rates and investments change. The bonus is shown as arriving with each payment, though it lands a few weeks later.
The government plans to replace the Lifetime ISA with a First Time Buyer ISA with no withdrawal charge and no upper age limit. It consulted on the design in summer 2026 and hasn’t set a start date, bonus or limits yet. Until it launches you can still open a Lifetime ISA, and if you have one you can keep paying in under today’s rules.
What goes in
Enter what you’ll pay in each month or year, for how many years, your age now and a growth rate after charges. A cash Lifetime ISA pays interest; a stocks and shares one can rise or fall. You can pay in up to £4,000 a tax year, about £333 a month.
What the result means
The government adds 25% to what you pay in, up to £1,000 a year. £200 a month for 5 years is £12,000, which earns £3,000 in bonuses. With 3% growth a year, the pot would be about £16,185 by age 30.
The last figure shows the cost of taking it out for anything other than a first home or retirement. The 25% charge is on everything you take out, bonus included, so you lose some of your own money too. GOV.UK’s example is £800 of savings with a £200 bonus: take out the £1,000 and you get £750 back.
The rules
You can open a Lifetime ISA if you’re 18 or over and under 40, and pay in until you’re 50. It counts towards your £20,000 ISA allowance. You can take the money out without a charge to buy your first home, costing £450,000 or less, at least 12 months after your first payment, with a mortgage and a conveyancer. You can also take it out from 60, or if you’re terminally ill.
The government plans to replace it with a First Time Buyer ISA with no withdrawal charge and no upper age limit, paying its bonus when you buy. HM Treasury consulted on the design in summer 2026 but hasn’t set a start date, bonus or limits. You can still open a Lifetime ISA until the new product launches, and existing savers can keep paying in under today’s rules.
Sources
- Lifetime ISA, GOV.UK
- First Time Buyer ISA consultation, HM Treasury, June 2026
- Tax-free savings newsletter 22, HMRC, June 2026