What is the LISA vs Stocks & Shares ISA Calculator?
A Lifetime ISA gives you something a normal Stocks & Shares ISA does not: a 25% government bonus on eligible contributions. But that bonus comes with tighter rules around when and why you can take the money out.
This calculator puts that trade-off into numbers. It compares using a LISA, sticking with a Stocks & Shares ISA, or splitting your yearly saving between both.
How the Calculator Works?
Enter how much you plan to save each year and what you are saving for. This might be your first home or money you want to leave invested for later life.
The calculator runs the same saving habit through three routes. It shows the potential pot, government bonus, how the money is split and what you give up in return for each route’s benefits.
If you switch on the early-withdrawal illustration, the comparison also shows what could be left after the LISA withdrawal charge.
Step 1: Tell us what you are saving for
Enter your age, goal, timescale and any existing ISA balances.
Step 2: Add your yearly saving
Enter how much you plan to put into ISA accounts each year and choose your growth assumptions.
Step 3: Compare the three routes
Compare LISA + Stocks & Shares ISA, Stocks & Shares ISA only and Lifetime ISA only.
What the LISA vs Stocks & Shares ISA comparison is telling you
There is a fairly simple trade-off underneath all the numbers. A Lifetime ISA gives you a government bonus, but places more restrictions on accessing the money. A normal Stocks & Shares ISA does not give you the bonus, but your money is generally much easier to access.
Your ranked routes
The calculator compares three ways of using the same yearly saving habit.
LISA + Stocks & Shares ISA Stocks & Shares ISA only Lifetime ISA onlyThe ranking depends on what you ask the calculator to prioritise. A route ranked first for the largest pot may not rank first for flexible access.
Government bonus
This is the extra money added to eligible Lifetime ISA contributions.
The calculator applies the 25% bonus to up to £4,000 of LISA contributions each year.
Flexible access
This is where the normal Stocks & Shares ISA has an important advantage.
Money can generally be withdrawn from a normal ISA when you need it, although individual investments or providers may have their own dealing rules or charges.
A LISA has specific conditions for taking money out without the government withdrawal charge.
Opportunity cost
Opportunity cost is what you give up by choosing one route over another.
Choosing a Stocks & Shares ISA means giving up the LISA bonus. Choosing a LISA means accepting tighter access rules.
On the Lifetime ISA only route, yearly saving above the amount the model can put into the LISA is left out, so you can see the cost of not placing that money elsewhere.
First-home results
If your goal is a first home, pay particular attention to the LISA value available around your planned purchase age.
The calculator also flags the first-home price limit where relevant.
Early withdrawal charge sketch
If you switch this on, the calculator illustrates what could happen if LISA money were taken outside the normal charge-free rules.
The 25% charge applies to the amount withdrawn, including the government bonus.
Stress test
The stress table reruns the routes using lower and higher investment growth assumptions.
This helps you see whether a result depends heavily on one growth assumption or whether the broad trade-off remains similar across different scenarios.
It is an illustration rather than a prediction of future investment returns.
The real decision is bonus vs access
It is tempting to look only at the route with the biggest projected number.
But £1 in a LISA and £1 in a normal Stocks & Shares ISA do not have exactly the same access rules. That matters if there is a realistic chance you will want the money before a qualifying first-home purchase or age 60.
Disclaimer
This calculator provides planning illustrations only and is not financial advice.
Lifetime ISA rules currently allow eligible savers to contribute up to £4,000 a tax year and receive a 25% government bonus. LISA contributions form part of the overall £20,000 ISA allowance for 2026/27. GOV.UK
Charge-free LISA withdrawals are subject to specific rules. These include qualifying first-home purchases and withdrawals from age 60. Other withdrawals will normally face a 25% withdrawal charge. For a qualifying first-home purchase, the property must currently cost £450,000 or less and the account must have been open for at least 12 months from the first payment. GOV.UK
The calculator simplifies government bonus timing and investment growth. It does not check your remaining ISA allowance, provider terms, investment suitability, conveyancing requirements, Help to Buy ISA transfers or tax outside these accounts.
What is the LISA vs Stocks & Shares ISA Calculator?
The LISA vs Stocks & Shares ISA Calculator compares the 25% Lifetime ISA bonus with the greater flexibility of a normal Stocks & Shares ISA. It shows how the same yearly saving could develop across three routes and what you gain or give up with each one.
What is the LISA vs Stocks & Shares ISA Calculator?
The LISA vs Stocks & Shares ISA Calculator compares the 25% Lifetime ISA bonus with the greater flexibility of a normal Stocks & Shares ISA. It shows how the same yearly saving could develop across three routes and what you gain or give up with each one.
What is a Lifetime ISA?
A Lifetime ISA is a type of ISA designed for buying a first home or saving for later life. You can currently contribute up to £4,000 each tax year and receive a 25% government bonus, worth up to £1,000 a year. GOV.UK
What is the main difference between a LISA and a Stocks & Shares ISA?
The big difference for this calculator is bonus versus access. A LISA can receive the government bonus but has tighter withdrawal rules. Money in a normal ISA can generally be withdrawn whenever you want, subject to any provider or investment-specific restrictions. GOV.UK
How much can I put into a Lifetime ISA?
The current limit is £4,000 per tax year. That £4,000 also counts towards your overall ISA allowance, rather than sitting on top of it. GOV.UK
What is the ISA allowance for 2026/27?
The overall ISA subscription limit for the 2026/27 tax year is £20,000. GOV.UK
How much is the LISA government bonus?
The government adds 25% to eligible LISA contributions. Contributing the full £4,000 annual amount would therefore produce a maximum £1,000 government bonus for that year. GOV.UK
Can I open a Lifetime ISA after 40?
You normally need to make your first payment into a LISA before you turn 40. If you already have one, you can continue paying into it until you reach 50. GOV.UK
What happens to my LISA when I turn 50?
You can no longer contribute or receive further 25% bonuses once you reach 50. The account can remain open and the existing money can continue earning interest or investment returns. GOV.UK
Can I have a Lifetime ISA and a Stocks & Shares ISA?
Yes. The important point is that contributions across your ISAs remain subject to the overall annual ISA allowance, and the LISA itself has its separate £4,000 contribution limit. GOV.UK
Can a Lifetime ISA hold investments?
Yes. A Lifetime ISA can hold cash or stocks and shares, or a combination of both. GOV.UK
When can I take money out of a LISA without the normal withdrawal charge?
The main circumstances are buying a qualifying first home, reaching age 60, or being terminally ill with less than 12 months to live. GOV.UK
What is the LISA withdrawal charge?
A withdrawal outside the qualifying rules will normally face a charge of 25% of the amount withdrawn. GOV.UK
Does a 25% charge just take back the 25% bonus?
Not quite. If you contribute £800, a 25% bonus makes it £1,000. A 25% withdrawal charge on £1,000 is £250, leaving £750 before considering any investment growth or losses. GOV.UK
What is the LISA first-home price limit?
The property must currently cost £450,000 or less for a qualifying LISA first-home withdrawal. GOV.UK
Does the LISA need to have been open for a certain amount of time before buying?
Yes. For a qualifying first-home purchase, it must be at least 12 months since you made your first payment into the LISA. GOV.UK
Why is the route with the largest pot not automatically the best one?
Because the pots can have different access rules. Someone building a first-home deposit may value the LISA bonus highly. Someone building a pot they might need at 45 may put much more value on flexible access. That is why the calculator lets you change what the ranking prioritises.
What does Lifetime ISA only mean if I save more than £4,000 a year?
The calculator puts up to the annual LISA contribution limit into the LISA. Any part of the yearly saving above that is deliberately left out of this route so you can see the opportunity cost. In real life, you could potentially save or invest that money elsewhere.
Does the calculator choose investments for me?
No. The growth rates are planning assumptions rather than fund recommendations or predictions.
Should I use a Cash LISA or Stocks & Shares LISA for a house deposit?
That depends on your timescale, willingness to take investment risk and circumstances. The calculator lets you model cash or investments, but it does not recommend which is suitable for you.
Is a LISA better than a Stocks & Shares ISA?
Neither is automatically better. A LISA offers a government bonus but has tighter access conditions. A Stocks & Shares ISA does not have the LISA bonus but normally provides much greater freedom over when you can access the money. The calculator is designed to show that trade-off using your own timescale and saving habit.
Trust and education
Certified Money First Aider®
These calculators are built by a Certified Money First Aider to help you think more clearly about money and time. Money First Aid® is about practical, non-judgemental support for financial wellbeing. The calculators can certainly help you make informed decisions, but they are not regulated financial advice.
Behind Retirement Calculators
Built from the questions I was asking myself
I'm Ryan, the person behind Retirement Calculators. I started the site after selling an online business and trying to understand what our pensions, ISAs, investments and property actually meant for the way we wanted to live.
The calculators are built around those real decisions: whether you could work less, retire earlier, spend more now or use your money differently. They will not give you a perfect answer, but they can make the trade-offs much easier to see.
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