Skip to main content
Free Calculator

Student Loan Repayment Calculator

Project your monthly deductions, total interest paid, and whether your loan will be written off. Works for Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate loans. Updated for 2026/27 tax year.

Educational only. Real salary growth, career breaks and plan changes will alter outcomes. Repayment thresholds and interest rates are frozen or growing with inflation — check gov.uk/repaying-your-student-loan for the latest. Not financial advice.

Is a UK student loan really a loan?

A UK student loan is not a traditional loan. It is a 9% graduate tax on earnings above the repayment threshold. You only pay when you earn above the threshold. It does not appear on your credit file. It stops when your salary falls below the threshold, even if you still owe money. After 30 or 40 years (depending on the plan), whatever remains is written off — which means for many borrowers, the amount written off is much larger than what they repaid. Understanding this changes the calculation entirely.

Your student loan scenario

Have both an undergraduate plan AND a the monthly deduc? Run two scenarios in this projector (one per plan) and add the monthly deductions. Or use the main tax calculator — it now supports both loans simultaneously and shows the combined monthly deduction in the breakdown.

£0£150k
£15k£200k
0%8%
0%12%
040
£0£1,000
Your lifetime repayment
£0
You'll clear this in X years (or it'll be written off)
Monthly deduction now
£0
Total interest paid
£0
£0Monthly deduction now
0Years to clear (if salary maintained)
£0Total interest paid
£0Total amount repaid
£0Amount written off (if any)
Likely outcomeWaiting for a repayment outlook.
Plan thresholdWaiting for threshold detail.
Overpayment stanceWaiting for the overpayment read.

What this means

The professional question is not whether the balance looks large. It is whether you are on a path to clear the plan before write-off, because that decides whether overpaying is rational or just an avoidable transfer to the Treasury.

Professional read

How to read the student-loan result properly

The right question is not "How bad does the balance look?" It is whether the plan behaves like a real debt you will clear or a payroll-linked graduate tax you are unlikely to finish repaying.

Key assumptionsThe projection assumes the salary path, inflation-linked thresholds, and plan rules entered today continue without a major policy rewrite.
Common mistakeOverpaying because the balance feels emotionally large, even when the projection says the plan is unlikely to be cleared before write-off.
Best next actionIf the plan is not likely to be cleared, redirect attention to pension, ISA, or high-interest debt instead of making symbolic overpayments.
When this breaks downVery uneven career paths, long breaks from earnings, expatriate periods, or future government rule changes can alter the repayment story materially.
Professional note. For many borrowers, the best use of this tool is not finding the exact balance path. It is deciding whether overpayment should even be in the conversation.
Balance and cumulative repayment over time
Outstanding loan balance Cumulative repayments

Year-by-year breakdown

This table shows your projected balance, salary and repayments for each year of the loan.

YearAgeSalaryAnnual repaymentInterest accruedBalance

The five UK student loan plans

Each plan has different thresholds, interest rates and write-off periods. Most borrowers are on Plan 2 or Plan 5. These figures are correct for the 2026/27 tax year.

PlanRepayment thresholdRepayment rateInterest rate (typical)Write-off period
Plan 1£26,9009%BoE base + 1% (~6.25%)25 years
Plan 2£29,3859%RPI to RPI+3% (~7.3%)30 years
Plan 4 (Scottish)£33,7959%BoE base + 1% (~6.25%)30 years
Plan 5 (from Aug 2023)£25,000 (frozen to 2027)9%RPI only (~4.3%)40 years
Postgraduate£21,0006%RPI+3% (~7.3%)30 years

When does repayment start?

Repayment begins on the April after you finish your course (or 4 years after you start the course for Plan 5), regardless of whether you have a job. If you earn below the threshold, you pay nothing, but the months still count towards the 25/30/40-year write-off clock.

How do student loan interest rates work?

Interest rates vary by plan and are set by the government each April. Plan 1 and Plan 4 usually track Bank of England base rate + 1%. Plan 2 and Postgraduate track RPI (Retail Price Index inflation) up to RPI+3%, depending on your salary. Plan 5 uses RPI only, making it significantly cheaper over time if inflation stays low. Interest accrues daily and is charged monthly, compounded into your balance.

The single most important insight

For most borrowers, voluntary overpayment is money given to the Treasury. If your salary trajectory means the loan will be written off with money still outstanding, paying extra early is worse than putting that money into an ISA or pension, where you keep the tax relief and investment growth. Only overpay if you are certain you will clear the loan before write-off, or you earn very high income now and want to avoid the psychological burden.

Should you overpay your student loan?

Overpayment decisions depend entirely on your personal circumstances:

Salary sacrifice into pension reduces your student loan bill

Pension contributions via salary sacrifice reduce your gross pay for the student loan repayment calculation. If you earn £40,000 and contribute £5,000 into a workplace pension via salary sacrifice, your loan repayment is calculated on £35,000 gross. This is a triple win: you get tax relief on the way in (£1,250 at 25% basic rate), the loan bill drops by £450/year (9% of £5,000), and the pension grows tax-free. This is one of the best tax moves available to UK workers.

Tip: Check if your employer matches

Many employers match workplace pension contributions up to 3-6%. This is free money and reduces your student loan bill at the same time. If your employer offers matching, salary sacrifice into the pension is a no-brainer.

Moving abroad and student loans

Student loan repayment does not stop when you leave the UK. You remain liable for the loan indefinitely, and it is assessed on your worldwide income. If you work overseas and are paid to a UK bank account, you are assessed on that UK income. If you work abroad and are paid abroad, HMRC assesses your liability based on your UK status and overseas income. Failure to repay can lead to enforcement action and sanctions. Speak to the Student Loans Company before moving permanently.

Important: Overseas assessment is complex

Working abroad does not write off your student loan or stop interest accrual. You must stay registered with the Student Loans Company and declare your overseas income. Non-payment leads to debt collection, CCJs and passport controls. Take legal advice if you plan to work overseas long-term.

PAYE vs self-employed repayment

PAYE employees: Repayment is deducted automatically from your payslip each month (via PAYE coding). You see it come out and do not need to do anything extra.

Self-employed: Repayment is assessed via your Self-Assessment tax return each year. You must declare your profits, and the loan repayment is calculated by HMRC. Payment is due by the tax deadline (31 January). If you owe over £3,000 at the end of the tax year, you may also need to make payments on account (advance payments towards next year's bill).

Income tax calculator — net pay and tax code · Salary sacrifice calculator — pension contributions and tax relief · Pension calculator — retirement projection · Compound interest calculator — ISA and investment growth.

Official references & background reading
gov.uk — Repaying your student loan Student Loans Company — Official loan servicer Martin Lewis — Student loan mythbusters House of Commons Library — Student finance briefing
Calculator Methodology

How to read this student-loan projection properly

This page is built to answer the one question that matters most: are you likely to clear the plan before write-off? Once that is clear, the overpayment decision becomes much simpler and more professional.

Last reviewed

  • 22 April 2026
  • 2026/27 thresholds and plan framing

Who this is for

  • Borrowers deciding whether to ignore the balance, model overpayments, or reduce repayments through pension salary sacrifice

Main assumptions

  • Single-plan modelling, steady salary growth, and no long career breaks or plan migration
  • Overseas, self-employed and mixed-plan cases can differ from the simple projection shown here
What To Open Next

Choose the smarter next move once you know the write-off path

If the loan is likely to be written off, the better move is often to redirect surplus cash to pensions, ISA funding, or higher-priority debt rather than chasing the student-loan balance itself.

Salary sacrifice calculatorSee how pension salary sacrifice can lower current repayments and boost long-term pension funding. Tax calculatorCheck the wider payroll picture when salary, tax, NI and student loan all interact. Pension calculatorModel the long-run destination if you redirect spare cash away from voluntary loan overpayments.
My scenarios
Editorial accountability
Open Trust Centre →

Every page is reviewed against the editorial standards, written from primary sources, sourced openly, and corrected publicly. No affiliate revenue. No sponsored content. No paid placements.

Editorial standards Editorial process Corrections policy How we make money Editorial team Methodology