Lifetime ISA Calculator UK (2025/26)

How is the LISA bonus calculated?

The Lifetime ISA bonus is 25% of every contribution you make, paid by the UK government. The maximum bonus is £1,000 per tax year, because the maximum personal contribution is £4,000. The bonus is paid into your LISA each month, usually 4–9 weeks after the contribution lands.

Example: if you pay in £200 every month for a tax year, you contribute £2,400. The government adds £600 (25% of £2,400), making your total £3,000 before any interest. Over 5 years at £200/month with 4% interest, this calculator shows you would end up with around £16,800.

For the full rules and worked examples, see the Lifetime ISA guide and LISA government bonus guide.

What this calculator does and doesn’t include

• Includes: 25% government bonus on each contribution, simple monthly compounding interest, the £4,000 annual contribution cap, and the £1,000 annual bonus cap.
• Does not include: investment volatility (stocks & shares LISAs can fall in value), platform or fund fees, or future changes to LISA rules announced after May 2026.
• Tax year boundaries: the calculator treats ‘year’ as a 12-month rolling period, not the UK tax year. The bonus and contribution caps reset annually.
• Withdrawal penalty not modelled: if you withdraw before age 60 for anything other than a first home, a 25% government withdrawal charge applies — see LISA withdrawal rules.

Lifetime ISA rules at a glance (2025/26)

• Annual contribution limit: £4,000 per tax year
• Government bonus: 25% on top, up to £1,000 per tax year
• Age to open: 18–39
• Last age you can pay in: 50
• First-home property cap: £450,000
• Penalty-free uses: first home (after 12 months), age 60, terminal illness
• Early withdrawal charge: 25% of total balance (so you can lose more than the bonus)

Sourced from gov.uk/lifetime-isa.

Frequently asked questions

How much can I pay into a Lifetime ISA each year?

You can pay up to £4,000 per tax year into a Lifetime ISA. The government adds a 25% bonus on top, up to a maximum of £1,000 per year. The £4,000 LISA limit counts toward your overall £20,000 ISA allowance.

What is the maximum Lifetime ISA bonus?

The maximum bonus is £1,000 per tax year (25% of the £4,000 limit). If you open a LISA at 18 and pay the maximum every year until age 50, total bonuses would be £33,000 (£1,000 × 33 years), before any interest or investment growth.

Does the LISA bonus count toward my £20,000 ISA allowance?

No. Only your own £4,000 contribution counts toward the £20,000 ISA allowance. The 25% bonus is paid on top.

Can I pay more than £4,000 into a Lifetime ISA?

No. £4,000 is a hard annual cap. Any contributions over this are returned by the LISA provider and no bonus is paid on the excess.

When does the LISA bonus get paid?

HMRC pays the bonus monthly to your LISA provider, typically 4–9 weeks after each contribution.