Lifetime ISA calculator
The government adds 25% to what you pay in, up to £1,000 a year. See what that grows to, and what the withdrawal charge takes if you use it for anything else.
How this is calculated
Each year your payment is added with a 25% bonus, and the balance grows at the rate you enter. Payments stop at 50, when the account can no longer be paid into.
Used for a first home costing £450,000 or less, or taken out at 60 or over, there is no charge.
Taken out for anything else, a 25% charge applies to the amount withdrawn. That removes the bonus and around 6.25% of your own money as well.
Rates used · 2026/27
| Yearly limit | £4,000, within the £20,000 ISA allowance |
| Bonus | 25%, up to £1,000 a year |
| First home price limit | £450,000 |
| Withdrawal charge | 25% for other withdrawals |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
Paying in £4,000 a year for five years adds a £5,000 bonus to your £20,000. Growing at 4%, that is £28,165 towards a first home. Taken out early for anything else, the 25% charge would take £7,041, leaving £21,124.
Common questions
Who can open a Lifetime ISA?
Anyone aged 18 or over but under 40. You can keep paying in until you turn 50.
Why does the 25% charge cost more than the bonus?
Because it is 25% of the whole withdrawal, including the bonus. Pay in £100, get £125, and the charge takes £31.25, leaving £93.75.
What counts as a first home?
A home costing £450,000 or less, bought with a mortgage, where you have never owned a home anywhere. The account must have been open for at least 12 months.
Can I have a Lifetime ISA and a Help to Buy ISA?
You can hold both, but only one bonus can be used towards buying your first home.