How much will the Lifetime ISA bonus add?
See the 25% government bonus you'd earn, what your LISA could be worth, and what you'd actually get back if you had to take it out early.
Your bonus and projection will appear here
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Projected LISA value
Eligible£0 after 5 years
- Starting balance
- £0
- You pay in
- £0
- Government bonus
- + £0
- Growth
- + £0
- If left until 60
- £0
If you withdrew it all for another reason
£0 in your hand
How this is calculated Hide details
Each year's payment (capped at £4,000) and its 25% bonus are added at the start of the year, then the balance grows at your assumed rate. Payments and the bonus stop from the year you're 50. "If left until 60" assumes you stop paying in after your chosen years and leave it invested. In reality the bonus is credited a little after each payment and returns aren't steady. The withdrawal figure applies the 25% charge to the whole projected pot. Illustration, not advice.
Last updated: 13 October 2026
Lifetime ISA rules at a glance
Pay in
£4,000 /year
Counts towards your £20,000 ISA allowance.
Government bonus
25%
Up to £1,000 a year.
Age
18–39
To open. Pay in and earn the bonus until 50.
First home cap
£450,000
At least 12 months after your first payment.
Buying your first home. You can use your Lifetime ISA, bonus included, if the property costs £450,000 or less, you buy at least 12 months after your first payment in, you buy with a mortgage, and a conveyancer or solicitor acts for you (your provider pays them directly). If you're buying with someone who also has a Lifetime ISA and you're both first-time buyers, you can both use yours.
Saving for later life. From age 60 you can take your money out for any reason, with no charge. Before then, withdrawing for anything other than a first home or terminal illness costs 25%.
One a year. You can only pay into one Lifetime ISA in a tax year, and it can hold cash, stocks and shares, or both.
Why the 25% charge costs more than the bonus
The bonus is 25% of what you pay in. The charge is 25% of what you take out, which includes the bonus. So the charge doesn't just claw back the bonus; it takes a slice of your own money too.
GOV.UK's example: save £800, get a £200 bonus, and you have £1,000. Withdraw it all and the charge is £250, leaving £750: £50 less than you put in. With no growth, that's a 6.25% loss of your own savings.
Need a specific amount? Withdraw more to cover the charge. To get £120 in hand, you'd withdraw £160 and pay £40 in charges.
You pay in £100 + 25% bonus £25 → £125 in the LISA − 25% of £125 £31.25 = you get back £93.75 (−6.25% of your money)
Sources: GOV.UK Lifetime ISA (overview, eligibility and withdrawing money) and How ISAs work. This tool is informational only and is not financial advice.
The Lifetime ISA is due to be replaced
The government plans to replace the Lifetime ISA with a new, simpler First Time Buyer ISA, and consulted on its design from 22 June to 18 August 2026. As proposed, it would be for buying a first home only, with the bonus paid when you withdraw to buy, so no withdrawal charge. The yearly limit, bonus level and property price cap will be set at a future fiscal event, and the government has said the Lifetime ISA's price cap will be aligned with whatever cap the new account gets.
Nothing changes yet. Until the new account is available, you can still open a Lifetime ISA, and existing holders can keep saving into theirs under the current rules. The government has also proposed that Lifetime ISA holders will be able to use their existing Lifetime ISA alongside the new account for the same purchase.
Source: HM Treasury, First Time Buyer ISA: consultation.
Lifetime ISA FAQ
How much is the Lifetime ISA bonus?
The government adds a 25% bonus to what you pay in, up to £1,000 a year. You can pay in up to £4,000 a year, so the maximum bonus is £1,000. If you open one at 18 and pay the maximum every year until 50, that's up to £32,000 in bonuses, before any growth.
Who can open a Lifetime ISA?
You must be 18 or over but under 40, and UK resident (or a member of the armed forces or a Crown servant, or their spouse or civil partner, if you live abroad). You need to make your first payment before you turn 40. Once open, you can keep paying in (and getting the bonus) until you turn 50.
What happens at 50?
When you turn 50 you can no longer pay into your Lifetime ISA or earn the bonus. The account stays open, and your savings keep earning interest or investment returns until you take them out.
When can I take money out without a charge?
Without a charge, you can withdraw to buy your first home (meeting the conditions), once you're 60 or over, or if you're terminally ill with less than 12 months to live. If you die, there's no charge either. Any other withdrawal, or transferring to another type of ISA before 60, is an unauthorised withdrawal with a 25% charge.
Do I lose my own money with the 25% withdrawal charge?
Yes, a little. The charge is 25% of the amount you withdraw, including the bonus. GOV.UK's example: £800 saved plus a £200 bonus makes £1,000; withdraw it all and the charge is £250, leaving £750: £50 less than you paid in. With no growth, that's a 6.25% loss of your own savings.
What is the Lifetime ISA house price limit?
To use your Lifetime ISA for your first home, the property must cost £450,000 or less. You also need to buy at least 12 months after your first payment in, buy with a mortgage, and use a conveyancer or solicitor. Your provider pays the money directly to them.
Does the Lifetime ISA count towards my ISA allowance?
Yes. Your Lifetime ISA payments (up to £4,000) count towards your £20,000 overall ISA allowance for 2026/27. You can only pay into one Lifetime ISA per tax year.
Is the Lifetime ISA being scrapped?
The government has said it will replace the Lifetime ISA with a new, simpler First Time Buyer ISA and consulted on the design between June and August 2026. No launch date has been announced. Until the new product is available, you can still open a Lifetime ISA, and existing holders can keep saving into theirs under the current rules. The government has also proposed that Lifetime ISA holders will be able to use their existing Lifetime ISA alongside the new account for the same purchase.
Watch your LISA grow, privately
Worthy tracks your Lifetime ISA alongside your other ISAs and savings, on your device, with no bank connection.