Lifetime ISA Calculator

Project the future value of your UK Lifetime ISA (LISA). Enter your current age, target age, annual contribution, current balance, and expected return rate to see your projected future value, total contributions, and investment growth.
Luis GonzalezCreated by Luis GonzalezLast updated:

How to Use This Calculator

  1. 1

    Enter Current Age

    Provide your age in years to establish the starting point for your LISA projection.

  2. 2

    Set Target Age

    Enter the age at which you intend to use the funds from your Lifetime ISA (e.g., age 60 for retirement).

  3. 3

    Specify Annual Contribution

    Input the amount you plan to contribute to your Lifetime ISA each year (max £4,000).

  4. 4

    Provide Current Balance

    Enter the total amount of money currently saved in your Lifetime ISA account.

  5. 5

    Set Expected Annual Return Rate

    Specify the anticipated annual percentage rate of return on your LISA investments.

  6. 6

    Review your results

    Examine the Future Value of your LISA, Total Contributed, and Investment Growth. The insights panel shows your government bonus potential and the compounding power of your contributions.

Example Calculation

A 25-year-old with a £10,000 LISA balance, contributing £4,000 annually at a 5% return, wants to project its value at age 65.

Current Age (yrs)

25

Target Age (yrs)

65

Annual Contribution (£)

4,000

Current Balance (£)

10,000

Expected Annual Return Rate (%)

5

Results

Future Value of Lifetime ISA

£553,598.98

Total Contributed

£170,000.00

Investment Growth

£383,598.98

Tips

Maximize the Government Bonus

Contribute the full £4,000 annually to receive the maximum £1,000 government bonus each year. Over 25 eligible years (ages 25-49), that is £25,000 in free money from the government.

Understand Withdrawal Rules

LISA funds can be withdrawn penalty-free only for a first home purchase (up to £450,000) or from age 60. Withdrawals for other reasons incur a 25% penalty, which means you lose more than just the bonus.

Start Early for Maximum Compounding

At a 5% return, 69% of your final LISA balance (£383,599 of £553,599) comes from investment growth alone. Starting early maximizes this compounding effect.

Compare With Workplace Pensions

While LISA offers a flat 25% bonus, workplace pensions often include employer matching. If your employer matches more than 25%, prioritize pension contributions first, then top up your LISA.

The Lifetime ISA (LISA) Calculator projects the future value of your UK-based Lifetime ISA, accounting for your current balance, annual contributions, and expected investment returns.

For example, a 25-year-old with a £10,000 balance contributing £4,000 annually at a 5% return could see their LISA grow to £553,599 by age 65 — with £383,599 of that total coming from investment growth alone, a 3.26x return on contributions.

Maximizing Your Savings with the Lifetime ISA

Understanding the future value of your Lifetime ISA is crucial for effective long-term financial planning.

This calculation helps you visualize how consistent contributions, combined with the government's 25% bonus and investment growth, can accumulate substantial wealth for key life goals.

Whether you are saving for a first home or building a retirement fund, projecting your LISA growth empowers you to make informed decisions about contribution levels and investment strategies.

Compounding Growth for Your Lifetime ISA

The calculator determines the future value by combining the growth of your current balance with the compounded value of your annual contributions:

Future Value = Current Balance x (1 + Return Rate)^Years + Annual Contribution x ((1 + Return Rate)^Years - 1) / Return Rate

Additional metrics:

Total Contributed = Current Balance + (Annual Contribution x Years)
Investment Growth = Future Value - Total Contributed

Where:

  • Current Balance is your existing savings in the LISA.
  • Annual Contribution is the amount you plan to add each year.
  • Return Rate is your expected investment growth (as a decimal).
  • Years is the duration from your current age to your target age.
💡 For a broader overview of your retirement savings strategy, our Simple Retirement Calculator can help you project your overall retirement nest egg.

Projecting a Lifetime ISA for a UK Saver

Let's consider a 25-year-old with an existing LISA balance of £10,000.

They plan to contribute £4,000 annually and expect a 5% annual return.

Their target age is 65.

Here's the step-by-step calculation:

  1. Calculate Number of Years: 65 - 25 = 40 years.
  2. FV of Current Balance: £10,000 x (1.05)^40 = £10,000 x 7.0400 = £70,399.89.
  3. FV of Annual Contributions: £4,000 x ((1.05)^40 - 1) / 0.05 = £4,000 x 120.800 = £483,199.10.
  4. Total Future Value: £70,399.89 + £483,199.10 = £553,598.98.
  5. Total Contributed: £10,000 + (£4,000 x 40) = £170,000.00.
  6. Investment Growth: £553,598.98 - £170,000.00 = £383,598.98.

The growth multiplier is 3.26x — every £1 contributed grows to £3.26 by age 65.

💡 To compare savings growth with different contribution strategies, try our Investment Growth Calculator.

Understanding the LISA Government Bonus

The LISA's standout feature is its 25% government bonus.

For every £4 contributed, the government adds £1, up to a maximum of £1,000 per year on contributions of £4,000.

This bonus is paid until you reach age 50, provided you opened the LISA before your 40th birthday.

A saver starting at age 25 and contributing the maximum until age 49 would receive 25 years of bonuses, totaling £25,000 in government contributions.

Lifetime ISA Withdrawal Rules and Penalties

LISA funds can be withdrawn penalty-free for two purposes: purchasing a first home (up to £450,000 property value) or at age 60 for retirement.

Withdrawals for any other reason incur a 25% charge on the amount withdrawn.

This charge effectively recovers more than just the bonus — for a £125 balance (£100 contribution + £25 bonus), the 25% penalty takes £31.25, leaving you with only £93.75 of your original £100.

This makes early withdrawal a costly decision that should be avoided whenever possible.

Frequently Asked Questions

What is a Lifetime ISA (LISA)?

A Lifetime ISA (LISA) is a UK government-backed savings product designed to help individuals aged 18-39 save for their first home or retirement. For every £4 contributed, the government adds £1, up to a maximum annual bonus of £1,000 on contributions of £4,000.

Who is eligible to open a Lifetime ISA?

You must be aged between 18 and 39 to open a Lifetime ISA. You can contribute until your 50th birthday, and the government bonus is paid until then. The maximum annual contribution is £4,000.

How much can a LISA grow over time?

With £4,000 annual contributions starting at age 25, a £10,000 initial balance, and a 5% annual return, your LISA could grow to £553,599 by age 65. Of that total, £170,000 is your contributions and £383,599 is investment growth — a 3.26x return on your money.

What happens if I withdraw from my LISA early?

Withdrawing for non-qualifying reasons incurs a 25% withdrawal charge. This recovers the government bonus and actually costs you more than the bonus itself — for every £100 you contributed (which became £125 with the bonus), you receive only £93.75 after the 25% penalty.

Does this calculator include the government bonus?

The calculator projects growth based on your entered contribution amount. The government bonus is shown separately in the insights panel. If you want to include the bonus in your projection, add it to your annual contribution (e.g., enter £5,000 instead of £4,000 to include the £1,000 bonus).