Lifetime ISA Calculator
Updated on 22 Oct 2026 for the 2026-27 tax year · Checked by Aotob
Paying £3,996 a year into a Lifetime ISA, you get £4,995 of free bonus.
After 5 years at 4% you have £27,055 towards a first home up to £450,000, or for retirement from 60.
After 5 years
£27,055
Use it for a first home up to £450,000 or after 60. Taking it out for anything else costs 25%, which is more than the bonus.
Show the working
Yearly payment 3,996 × 25% bonus = 999 a year, for 5 years
Bonus = 4,995; balance grows at 4% a year
Your Lifetime ISA
Year by year
| Year | Age | Bonus so far | Balance |
|---|---|---|---|
| 1 | 26 | 999 | 4,995 |
| 2 | 27 | 1,998 | 10,190 |
| 3 | 28 | 2,997 | 15,592 |
| 4 | 29 | 3,996 | 21,211 |
| 5 | 30 | 4,995 | 27,055 |
Questions people ask
Who can open a Lifetime ISA?
UK residents aged 18 to 39. Once open you can pay in until the day before you turn 50, and the government adds 25%: up to £1,000 a year on £4,000.
What can I use it for?
Buying your first home costing £450,000 or less, at least 12 months after your first payment, or taking it out from age 60. For anything else there is a 25% withdrawal charge, which takes back the bonus and some of your own money.
Does it count towards my £20,000 ISA allowance?
Yes. Up to £4,000 a year goes in the Lifetime ISA, leaving £16,000 for other ISAs.
Updated 22 Oct 2026Tax year 2026-27Source: GOV.UK: Lifetime ISAChecked by AotobBonus paid on payments up to £4,000 a year until age 50. Growth assumed steady.Report an issue