Lifetime ISA Calculator 2026
Last updated: 09 September 2026 · 2026/27 UK tax year
Model your 25% government bonus, compound interest, and discover the exact financial cost of the early withdrawal penalty trap.
LISA Details
You can pay into a LISA from age 18 up to your 50th birthday.
Total Projected LISA Pot
£28164.88
How your pot is built:
⚠️ Early Withdrawal Penalty Trap
If you withdraw this money for anything other than buying your first home (up to £450k) or retirement (at age 60), the government applies a 25% penalty on the total pot.
Year by Year Growth
| Yr | Saved | Bonus | Interest | Balance |
|---|---|---|---|---|
| 1 | £4000 | £1000 | £200 | £5200 |
| 2 | £8000 | £2000 | £608 | £10608 |
| 3 | £12000 | £3000 | £1232 | £16232 |
| 4 | £16000 | £4000 | £2082 | £22082 |
| 5 | £20000 | £5000 | £3165 | £28165 |
What Is the Lifetime ISA Bonus in 2026/27?
The Lifetime ISA (LISA) offers one of the most generous savings incentives in the UK. For every £4 you deposit, the government will add £1. This is a guaranteed 25% bonus. Because you can deposit a maximum of £4,000 per tax year into a LISA, the maximum government bonus you can earn is £1,000 every single year. Note that your £4,000 limit counts toward your total £20,000 annual ISA limit — you can plan how to split this using our Standard ISA Calculator.
Using Your LISA to Buy a First Home
The most common reason people open a LISA is to save for a deposit on their first home. You can withdraw the entire pot, completely penalty-free, as long as you meet certain criteria.
Property Price Cap (£450,000)
The property you are buying must cost £450,000 or less. If you try to buy a house for £450,001, you will be hit by the 25% withdrawal penalty. This £450k cap applies everywhere in the UK, including London.
Eligible Properties and Conveyancing
You must be buying a property to live in (not a buy-to-let) with a residential mortgage. The LISA must have been open for at least 12 months before you can use the bonus. Finally, you don't withdraw the money yourself; your conveyancing solicitor must request the funds directly from your LISA provider.
LISA for Retirement — Tax-Free Access at 60
If you don't buy a house, the only other way to access your LISA penalty-free is to wait until your 60th birthday. At 60, you can withdraw the entire pot—contributions, bonuses, and interest—completely tax-free. Because the money is tax-free on withdrawal, many basic rate taxpayers find a LISA more lucrative than a standard pension. You can model your retirement income needs using our Pension Retirement Calculator.
The Early Withdrawal Penalty — Why You Get Back LESS Than You Put In
If you withdraw money from your LISA for anything other than a qualifying first home or retirement at 60, you face a massive 25% penalty. The trap is that the 25% penalty is taken on the total pot, not just your contributions. For example, if you save £4,000, you get a £1,000 bonus, making your pot £5,000. If you withdraw it early, the government takes a 25% penalty on the £5,000 (which is £1,250). You only get back £3,750. You actually lose £250 of your own initial money. Use the red penalty box in our calculator above to see exactly how much you risk losing.
Lifetime ISAs