UK Student Loan Repayment Calculator
Updated for 2025/26 tax year. Plans 1, 2, 4, 5 and Postgraduate covered.
Enter your total annual salary before tax and deductions
Plan 2: started Sep 2012 to Jul 2023 in England/Wales. Plan 5: started Aug 2023 onwards in England.
Threshold £21,000 | Rate 6% | Interest RPI+3%
Your Student Loan Repayment Estimate
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Annual Total
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What Is UK Student Loan Repayment?
UK student loan repayment is income-contingent, meaning you only repay once your gross salary exceeds a set repayment threshold for your loan plan. Unlike a traditional bank loan, the monthly amount you pay scales with your income and stops automatically if you earn below the threshold due to a career break, redundancy, or part-time work.
The Student Loans Company (SLC) manages the loan balance, and HMRC collects repayments directly from your employer through the Pay As You Earn (PAYE) system alongside income tax and National Insurance. If you are self-employed, repayments are collected annually through your Self Assessment tax return.
There are five active repayment plans in 2025/26: Plan 1, Plan 2, Plan 4 (Scotland), Plan 5, and the Postgraduate (Plan 3) loan. The plan you are on depends entirely on when and where in the UK you started your course. You cannot choose your plan. Each plan has its own repayment threshold, interest rate, and write-off timeline.
The key principle that makes UK student loans different from other debt is the write-off provision. After 25 to 40 years depending on plan type, any remaining balance is cancelled automatically, regardless of how much is left. This means the majority of Plan 2 graduates, particularly those on average salaries, will never repay the full amount borrowed.
Who Should Use This Student Loan Repayment Calculator?
This UK student loan repayment calculator is designed for any UK graduate or current student who wants to understand their repayment obligations. It is useful for the following groups:
- Recent graduates starting their first job who want to know how much comes off their payslip each month
- Plan 5 borrowers who started university from August 2023 and have PAYE deductions beginning from April 2026
- Plan 2 graduates checking whether the April 2026 threshold increase to £29,385 changes their repayments
- Scottish graduates on Plan 4 wanting to understand the highest undergraduate repayment threshold in the UK (£32,745)
- Postgraduate loan holders with both an undergraduate and Master's or PhD loan, calculating combined monthly deductions
- Self-employed graduates budgeting for annual Self Assessment repayment obligations
- Mortgage applicants who need to understand how student loan repayments reduce their mortgage affordability
How to Use the UK Student Loan Repayment Calculator
- Enter your annual gross salary. Use the figure before income tax and National Insurance. This is shown on your P60 or employment contract. Do not use your take-home pay figure.
- Select your loan plan. Your plan depends on when and where you studied. Plan 2 covers England and Wales starters from September 2012 to July 2023. Plan 5 covers England starters from August 2023 onwards. Check your Student Finance correspondence or your online SLC account at slc.co.uk if unsure.
- Enter your loan balance (optional). Add your current outstanding undergraduate balance to see interest calculations and a rough repayment timeline. Find your balance on your SLC online account.
- Add a postgraduate loan if applicable. Tick the box if you also hold a Master's or PhD loan. Enter the balance to see combined monthly deductions at 9% plus 6%.
- Click Calculate Repayment. Your monthly repayment, annual total, applicable interest rate, and a full line-by-line breakdown will appear instantly.
UK Student Loan Repayment Thresholds and Rates 2025/26
All repayment thresholds below are effective from 6 April 2025 for the 2025/26 tax year. Interest rates are effective from 1 September 2025 based on March 2025 RPI of 3.2%.
| Plan | Who It Covers | Threshold 2025/26 | Rate | Interest Rate | Write-Off |
|---|---|---|---|---|---|
| Plan 1 | England/Wales before Sep 2012, Northern Ireland | £26,065/yr | 9% | 3.2% (RPI) | 25 years or age 65 |
| Plan 2 | England/Wales, Sep 2012 to Jul 2023 | £28,470/yr | 9% | 3.2% to 6.2% (RPI to RPI+3%) | 30 years |
| Plan 4 | Scotland (all income-contingent) | £32,745/yr | 9% | 3.2% (RPI) | 30 years or age 65 |
| Plan 5 | England, started Aug 2023 onwards | £25,000/yr | 9% | 3.2% (RPI only) | 40 years |
| Postgraduate (Plan 3) | Master's and PhD loans, England/Wales from 2016 | £21,000/yr | 6% | 6.2% (RPI+3%) | 30 years |
Student Loan Repayment Worked Examples
Plan 2 - Average Graduate Salary
Salary: £35,000/year
Threshold: £28,470
Income above threshold: £6,530
Annual repayment: £6,530 x 9% = £587.70
Monthly repayment: £48.97
Plan 2 - Higher Earner
Salary: £55,000/year
Threshold: £28,470
Income above threshold: £26,530
Annual repayment: £26,530 x 9% = £2,387.70
Monthly repayment: £198.97
Plan 5 - New Graduate 2026
Salary: £28,000/year
Threshold: £25,000
Income above threshold: £3,000
Annual repayment: £3,000 x 9% = £270.00
Monthly repayment: £22.50
Plan 2 + Postgraduate Loan
Salary: £40,000/year
Plan 2 repayment: (£40,000 - £28,470) x 9% = £1,037.70/yr
Postgrad repayment: (£40,000 - £21,000) x 6% = £1,140/yr
Combined annual: £2,177.70
Combined monthly: £181.47
Plan 4 - Scottish Graduate
Salary: £35,000/year
Threshold: £32,745
Income above threshold: £2,255
Annual repayment: £2,255 x 9% = £202.95
Monthly repayment: £16.91
Plan 1 - Older Graduate
Salary: £30,000/year
Threshold: £26,065
Income above threshold: £3,935
Annual repayment: £3,935 x 9% = £354.15
Monthly repayment: £29.51
Quick Reference: Monthly Repayments by Salary
Estimates based on 2025/26 thresholds. Monthly figures rounded to nearest pound.
| Annual Salary | Plan 1 (£26,065) | Plan 2 (£28,470) | Plan 4 (£32,745) | Plan 5 (£25,000) | Postgrad Only (£21,000) |
|---|---|---|---|---|---|
| £20,000 | £0 | £0 | £0 | £0 | £0 |
| £22,000 | £0 | £0 | £0 | £0 | £5 |
| £25,000 | £0 | £0 | £0 | £0 | £20 |
| £27,000 | £7 | £0 | £0 | £15 | £30 |
| £30,000 | £30 | £11 | £0 | £38 | £45 |
| £33,000 | £52 | £34 | £2 | £60 | £60 |
| £35,000 | £67 | £49 | £17 | £75 | £70 |
| £38,000 | £90 | £72 | £39 | £98 | £85 |
| £40,000 | £104 | £86 | £54 | £113 | £95 |
| £45,000 | £143 | £124 | £92 | £150 | £120 |
| £50,000 | £180 | £162 | £129 | £188 | £145 |
| £55,000 | £218 | £199 | £167 | £225 | £170 |
| £60,000 | £255 | £237 | £204 | £263 | £195 |
| £70,000 | £330 | £312 | £279 | £338 | £245 |
| £80,000 | £405 | £386 | £354 | £413 | £295 |
| £100,000 | £555 | £536 | £504 | £563 | £395 |
Source: GOV.UK repayment rules. All figures are estimates. Actual deductions depend on your specific pay period thresholds applied by your employer through PAYE.
Student Loan Edge Cases and Exemptions
Multiple jobs: If you have two or more jobs, each employer applies the repayment threshold separately to the wages they pay. You will only make repayments from jobs where that single job's pay exceeds the threshold. Your incomes are not combined for PAYE purposes.
Career breaks and maternity leave: Repayments stop automatically when your income falls below the threshold. No action is needed. They restart when your pay rises above the threshold again.
Overpayments: If too much is deducted in a tax year and your annual income falls below the yearly threshold, you can claim a refund from HMRC at the end of the tax year. Contact the Student Loans Company with your P60 as evidence.
Salary sacrifice schemes: Pension contributions, cycle to work, and childcare vouchers made through salary sacrifice reduce your gross income. Because student loan repayments are calculated on gross income after salary sacrifice deductions, these schemes also reduce your student loan repayment amount.
Working overseas: You must inform the Student Loans Company when moving abroad. Repayments continue using a country-specific income threshold, often lower than UK thresholds. Income is converted using exchange rates. Persistent non-payment can create complications when you return to the UK.
When Do Student Loan Repayments Start and Stop?
For PAYE employees, repayments start in the first pay period after the April following graduation or leaving your course. If you graduated in June 2024, your first repayment would be taken from your payslip in April 2025, provided your salary is above the threshold.
For Plan 5 borrowers, PAYE deductions cannot start before April 2026 even if you started repaying early. This is a legislative requirement under current regulations.
Repayments stop automatically in any of these situations: your income falls below the threshold, you reach the end of the write-off period, your loan balance reaches zero, or you die (loan is cancelled in full). There is no penalty for paying off the loan early by making voluntary overpayments.
Frequently Asked Questions
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Calculation methodology sourced from official government publications. See our Editorial Policy for how we build and maintain our calculators.