Lifetime ISA Bonus Calculator
LISA gives a 25% government bonus on up to £4,000/year — £1,000/year free money.
Updated May 2026, using HMRC 2026/27 rates and current ONS / gov.uk figures.
Lifetime ISA (LISA): age 18-39 to open. Contributions earn a 25% government bonus, up to £1,000/year. Use for first home (under £450k) or after age 60. Other withdrawals attract a 25% penalty.
Worked examples
£4,000 contributed = £1,000 bonus, £5,000 in account.
£4,000/yr from 25 to 50 = £25k bonus + ~£170k investment growth at 5% (illustrative).
Sources:
HMRC Lifetime ISA
· retrieved 2026-05-12.
Frequently asked questions
Can I use LISA for any house?
First home only, purchase price under £450,000, you must be a first-time buyer.
What's the 25% withdrawal penalty?
Withdrawing for a non-qualifying reason loses 25% of the withdrawal — not just the bonus. £1,000 contributed, £250 bonus, £1,250 account, withdraw all = £937.50 (you lose £62.50 of your own money).
Is LISA better than a personal pension for retirement?
Depends on tax band. Higher-rate payers usually prefer pension (40% relief). Basic-rate payers may prefer LISA (25% bonus + tax-free withdrawal at 60).