🎓 UK Student Loan Repayment Calculator

Student loans in the UK are provided by the government through the Student Loans Company and are repaid through the tax system as a percentage of your earnings above a repayment threshold. Unlike commercial loans, UK student loans are income-contingent \u2013 the amount you repay each month depends entirely on how much you earn, not how much you borrowed. If your income falls below the threshold, you repay nothing. Any outstanding balance is written off after a set period (typically 25 to 40 years depending on the plan), making the system more like a graduate tax than a conventional loan.

There are several repayment plans, each with different thresholds and rules. Plan 1 applies to borrowers who started their course before September 2012 (mainly English and Welsh students), with repayments at 9% of income above "525,000. Plan 2 applies to English and Welsh borrowers who started between September 2012 and July 2023, with repayments at 9% above "528,470. Plan 4 is for Scottish borrowers (students ordinarily resident in Scotland), with repayments at 9% above "526,065. Plan 5 applies to English borrowers who started on or after 1 August 2023, with repayments at 9% above "525,000 and a 40-year write-off period (the longest of any plan). Postgraduate loans are for students on master's or doctoral courses, with repayments at 6% above "521,000.

Many borrowers have more than one plan type simultaneously \u2013 for example, a graduate with a Plan 1 undergraduate loan who later takes a Postgraduate master's loan will repay 9% on the Plan 1 threshold plus 6% on the Postgraduate threshold, meaning a total of 15% of income is deducted above the relevant thresholds. This is one of the most overlooked aspects of UK student finance, and it can significantly affect take-home pay.

This calculator supports all five plan types and allows you to select a second plan if you have multiple loans. It shows your annual deduction, monthly deduction, and the deduction as a percentage of your total income, so you can see the real impact on your pay packet. All calculations run locally in your browser. The thresholds shown reflect the 2026/27 tax year.

Student loan repayments are calculated as a percentage of your gross income above the threshold for each plan. The deduction is taken automatically through PAYE (Pay As You Earn) if you are employed, or through self-assessment if you are self-employed. Only income above the threshold is taxed \u2013 income below the threshold is not affected.

For example, if you earn "535,000 on Plan 5, you repay 9% of ("535,000 \u2013 "525,000) = 9% of "510,000 = "5900 per year, or "575 per month. If you also have a Postgraduate loan, you repay an additional 6% of ("535,000 \u2013 "521,000) = 6% of "514,000 = "5840 per year, bringing total annual deductions to "51,740 or about "5145 per month.

1. Enter your annual gross salary before tax.
2. Select your primary student loan plan type.
3. If you have a second plan (e.g. Postgraduate loan), select it.
4. Click Calculate to see your monthly and annual deductions.
5. Review the deduction as a percentage of your total income.

How are student loan repayments collected?

If you are employed, repayments are deducted automatically from your salary through PAYE, appearing on your payslip alongside Income Tax and National Insurance. If you are self-employed, you make repayments through your annual Self Assessment tax return. If you have multiple jobs, deductions are based on your combined income across all employment.

What happens if my income is below the threshold?

If your income falls below the repayment threshold for your plan, you repay nothing that month or year. There is no minimum payment and no penalty. Repayments only begin when your income exceeds the threshold, and they stop again if your income drops below it.

Can I have more than one student loan plan?

Yes. Many graduates have both an undergraduate loan (Plan 1, 2, 4 or 5) and a Postgraduate master's or doctoral loan. In this case, both deductions are taken simultaneously. For example, a Plan 5 borrower earning \"\u003540,000 with a Postgraduate loan would repay 9% above \"\u003525,000 plus 6% above \"\u003521,000.

Will my student loan ever be written off?

Yes. All UK student loans are written off after a set period. Plan 1 loans are written off at age 65. Plan 2 and Plan 4 loans are written off 30 years after the April you were first due to repay. Plan 5 loans are written off 40 years after you were first due to repay. Postgraduate loans are written off 30 years after the April you were first due to repay.

Should I pay off my student loan early?

For most borrowers, voluntary overpayments do not make financial sense. Because most people will not fully repay the loan before it is written off, any extra payments may simply replace money that would have been written off anyway. However, high earners who expect to fully repay within the write-off period may benefit from overpaying to reduce total interest charges.

Do student loan repayments affect my credit score?

No. Student loans do not appear on your credit file and do not affect your credit score. They are not treated as a commercial debt. Mortgage lenders may ask about student loan deductions when assessing affordability, as they reduce your take-home pay, but the loan balance itself is not a factor.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

Student loan deductions are based on your gross income before tax, but they are not themselves tax-deductible \u2013 they are taken after Income Tax and National Insurance have been calculated, so they sit on top of those deductions. The 9% rate applies to every pound above the threshold, which means that as your salary increases, your repayment increases linearly. There is no upper cap. For Plan 2 borrowers with high starting balances, many will never fully repay the loan and will have the balance written off after 30 years \u2013 this means the loan effectively functions as a 9% additional tax on earnings above the threshold for three decades. Plan 5 borrowers face the longest repayment window at 40 years, but the lowest threshold means more graduates will repay for longer. If you have both an undergraduate and a Postgraduate loan, be aware that the combined deduction can reach 15% above the Postgraduate threshold \u2013 this is a significant amount that should be factored into salary expectations and budgeting. In Scotland, Student Awards Agency for Scotland (SAAS) bursaries and grants do not affect repayment. If you move abroad, you are still required to repay based on the local equivalent income threshold for that country, which varies widely. Voluntary overpayments are possible but rarely make financial sense unless you are confident you will fully repay the loan within the write-off period.