UK Lifetime ISA (LISA) Calculator
Calculate your LISA deposit pot, government bonus earnings (25% up to £1,000/year), and how much of your first home's purchase price your savings will cover. GBP.
The 25% withdrawal penalty effectively claws back the government bonus plus 6.25% of your own contributions. Only withdraw penalty-free for a first home (max £450K) or retirement at age 60+.
Each year you contribute up to £4,000, the government adds a 25% bonus (up to £1,000). This compounds with investment growth over your savings timeline.
| Year | Cumulative Contributions | Cumulative Bonus | Investment Growth | Total Balance |
|---|---|---|---|---|
| Year 1 | £3,996 | £999 | £355 | £10,350 |
| Year 2 | £7,992 | £1,998 | £901 | £15,891 |
| Year 3 | £11,988 | £2,997 | £1,644 | £21,629 |
| Year 4 | £15,984 | £3,996 | £2,591 | £27,571 |
| Year 5 | £19,980 | £4,995 | £3,749 | £33,724 |
A Stocks and Shares LISA invests in the market and typically outperforms a Cash LISA over longer timeframes. However, for short timelines (under 3 years), a Cash LISA avoids market risk near your purchase date.
How to Use This LISA Calculator
Enter your current LISA balance, monthly contribution (max £333/month to earn the full bonus), years until purchase, expected annual growth rate, and your target property price. The calculator shows your projected deposit pot, total government bonus earned, and the percentage of your property price it covers.
What Is a Lifetime ISA?
A Lifetime ISA (LISA) is a government-backed savings account for UK residents aged 18–39. You can save up to £4,000 per tax year, and the government adds a 25% bonus — up to £1,000 per year. The money can be used penalty-free only to buy your first home (up to £450,000) or from age 60 for retirement. Withdrawing for any other reason incurs a 25% penalty on the entire pot.
LISA Eligibility Rules
You must be aged 18–39 to open a LISA. Contributions can continue until age 50 (up to £4,000/year). The property must be your first home, cost no more than £450,000, and be purchased with a mortgage. The LISA must have been open for at least 12 months before use.
LISA Calculation Formula
Government Bonus: 25% of contributions (max £1,000/year)
Monthly to maximise: £333.33/month (= £4,000/year)
Example: 5 years, £333/mo, 4% growth
Contributions: £20,000
Government Bonus: £5,000
Growth on £25,000: ~£2,700
Total Deposit Pot: ~£27,700
Early Withdrawal Penalty: 25% of total pot
(claws back bonus + 6.25% of your own money)
Example: First-Time Buyer Using a LISA
Sophie, 26, Saving for a £350,000 Flat in Manchester
Sophie opens a Lifetime ISA and contributes £333 per month for 5 years at 4% growth (Cash LISA).
| Monthly Contribution | £333 (max for full bonus) |
| Annual Contribution | £3,996 |
| Annual Government Bonus | £999 |
| Total Saved After 5 Years | ~£27,400 |
| Government Bonus Received | ~£5,000 |
| Deposit as % of £350K | ~7.8% |
| Early Penalty if Withdrawn (est.) | ~£6,850 |
By maximising her LISA, Sophie receives £5,000 in government bonuses over 5 years — equivalent to an extra 14.3% return on her contributions, on top of any investment growth. This is one of the best guaranteed returns available in the UK.