Student Loan Repayment Calculator
Calculate your UK student loan repayments for Plan 1, 2, 4, 5, and Postgraduate loans. See monthly deductions, total repayment, interest charges, and write-off projections.
Student Loan Repayment Calculator
£27,295
Threshold
9%
Repayment rate
7.3%
Interest rate
30 yrs
Write-off
£58
Per month
£693
Per year
£20,804
Total repaid
30 yrs
Until write-off
Loan written off after 30 years
At this salary, you'd repay £20,804 before the remaining £303,419 is written off. You'd pay £279,222 in interest. Voluntary overpayments would likely not save you money — the loan gets cancelled regardless.
Repayment Projections
| Year | Balance | Total Paid | Total Interest |
|---|---|---|---|
| Year 1 | £47,592 | £693 | £3,285 |
| Year 5 | £59,993 | £3,467 | £18,460 |
| Year 10 | £81,317 | £6,934 | £43,252 |
| Year 15 | £111,648 | £10,402 | £77,050 |
| Year 20 | £154,788 | £13,869 | £123,657 |
| Year 25 | £216,147 | £17,336 | £188,483 |
| Year 30 | £303,419 | £20,804 | £279,222 |
This assumes a constant salary and interest rate. In reality, thresholds rise with inflation, your salary may increase, and interest rates fluctuate. Plan 2 interest is RPI + 0-3% depending on income. Projections are illustrative, not exact.
All Plan Types at a Glance
| Plan | Threshold | Rate | Interest | Write-off |
|---|---|---|---|---|
| Plan 1 (pre-2012) | £24,990 | 9% | 6.3% | 25 yrs |
| Plan 2 (2012–2023) | £27,295 | 9% | 7.3% | 30 yrs |
| Plan 4 (Scotland) | £31,395 | 9% | 6.3% | 30 yrs |
| Plan 5 (2023+) | £25,000 | 9% | 4.3% | 40 yrs |
| Postgraduate Loan | £21,000 | 6% | 9.3% | 30 yrs |
Thresholds and interest rates for 2026/27. Interest rates shown are current maximums and may change.
How UK Student Loans Actually Work
UK student loans are unlike any other type of debt. You don't make fixed monthly payments — instead, 9% of everything you earn above a threshold is automatically deducted from your salary through PAYE (like tax and National Insurance). If you earn below the threshold, you pay nothing. If you lose your job, you pay nothing. If your salary drops, your payments drop. And after 25-40 years (depending on your plan), whatever's left is written off.
This means a student loan works more like a graduate tax than a traditional loan. The amount you borrowed matters less than your salary over the next few decades. Someone who borrows £60,000 but earns £28,000 might repay less in total than someone who borrows £30,000 but earns £55,000 — because the higher earner pays 9% on a much larger amount above the threshold.
The critical question isn't "how much do I owe?" but "will I repay the full balance before write-off?" If the answer is no — and for 83% of Plan 2 graduates, it is — then voluntary overpayments are wasted money. You'd be paying extra towards a debt that gets cancelled anyway.
What You'll Actually Pay Each Month
Monthly repayments depend entirely on your salary, not your balance. Here's what each plan costs at different salaries.
| Annual Salary | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgrad |
|---|---|---|---|---|---|
| £25,000 | £0 | £0 | £0 | £0 | £20 |
| £30,000 | £38 | £20 | £0 | £38 | £45 |
| £35,000 | £75 | £58 | £27 | £75 | £70 |
| £40,000 | £113 | £95 | £65 | £113 | £95 |
| £50,000 | £188 | £170 | £140 | £188 | £145 |
| £60,000 | £263 | £245 | £215 | £263 | £195 |
| £80,000 | £413 | £395 | £365 | £413 | £295 |
Monthly repayments rounded to nearest £. Plans 1/2/4/5 charge 9% above their threshold. Postgraduate charges 6% above £21,000. If you have both an undergraduate and postgraduate loan, both are deducted simultaneously. 2026/27 thresholds.
Should You Make Voluntary Overpayments?
Plan 2, earning £30,000
NoYou'd repay about £20/month — nowhere near enough to clear the balance before write-off. Your loan gets cancelled after 30 years. Any voluntary payments are money you'll never get back.
Plan 2, earning £60,000+
MaybeHigh earners on Plan 2 may repay in full. If you're on track to clear the balance, overpaying saves interest. Run the numbers — if your projected total repayment exceeds the balance, overpaying helps.
Plan 1, small balance remaining
YesIf you have under £5,000 left and you're earning well, paying it off eliminates the monthly deduction. Useful if you want to maximise mortgage affordability.
Plan 5, any salary
Probably notWith a 40-year write-off and RPI-only interest, most Plan 5 borrowers won't repay in full. The government designed it this way. Save your money elsewhere.
Any plan, about to buy a house
Think carefullyPaying off a student loan improves your disposable income (which helps mortgage affordability), but the money might work harder as a bigger deposit. A bigger deposit lowers your LTV and mortgage rate.
Postgraduate loan, earning £50,000+
Check the mathsPostgraduate loans charge RPI + 3% interest — the highest rate. If you're a high earner who'll repay in full, the interest is expensive. But if you won't repay in full before write-off, it doesn't matter.
Common Mistakes
Panicking about a £50,000+ loan balance
The balance is almost irrelevant for most graduates. What matters is your salary trajectory. 83% of Plan 2 borrowers won't repay in full — the rest is written off. Think of it as a 9% tax on earnings above the threshold for 30 years, not as a traditional debt.
Making voluntary overpayments on Plan 2 at a low salary
If you earn £30,000, you repay ~£243/year. At that rate, you'd never clear a £50,000 balance in 30 years even with zero interest. Every voluntary payment is money gone forever — it doesn't reduce your monthly deduction, only the balance that'd be written off anyway.
Not knowing which plan you're on
Check your payslip — it shows the plan type and deduction amount. Or log into your Student Loans Company account. Being on the wrong plan means your employer deducts the wrong amount. This happens more often than you'd think, especially after plan changes.
Ignoring the pension interaction
Pension contributions via salary sacrifice reduce your gross salary — which reduces student loan deductions. If you contribute an extra £100/month to your pension via salary sacrifice, your student loan payment drops by £9/month (Plan 2). Plus you get tax and NI relief. Triple benefit.
Student Loans and Mortgage Applications
Student loans don't appear on your credit file, but they directly affect mortgage affordability. Lenders look at your net disposable income — and student loan deductions reduce it. Here's the mortgage impact at different salaries (assuming Plan 2):
| Salary | Monthly Deduction | Annual Cost | Approx Mortgage Reduction |
|---|---|---|---|
| £30,000 | £20 | £243 | ~£5,000 |
| £35,000 | £58 | £693 | ~£15,000 |
| £40,000 | £95 | £1,143 | ~£25,000 |
| £50,000 | £170 | £2,043 | ~£45,000 |
| £60,000 | £245 | £2,943 | ~£65,000 |
Mortgage reduction estimates are approximate — lenders use different affordability models. The reduction assumes a 4.5x income multiplier adjusted for the monthly commitment. Paying off a small remaining balance before applying can boost your maximum borrowing.
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Sources
- Gov.uk — Repaying your student loan 2026/27
- Student Loans Company — Interest rates and thresholds
- Gov.uk — Plan 5 student loans from September 2023
- Institute for Fiscal Studies — Student finance in England 2026
- HMRC — Student loan deduction tables 2026/27
- Gov.uk — Student loan repayment for employers
- MoneyHelper — Should you repay your student loan early?
How to use this tool
Select your student loan plan type (Plan 1, 2, 4, 5, or Postgraduate)
Enter your annual salary and current loan balance
See monthly repayments, total cost, and write-off projections
Common uses
- Checking monthly student loan deductions from your salary
- Comparing total repayment across different plan types
- Deciding whether to make voluntary overpayments
- Understanding how salary changes affect repayment timeline
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