UK Student Loan Repayment Calculator 2026/27
Works for Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate loans. Calculate your monthly repayment, see exactly when you'll clear the balance (or when it's written off), and model the effect of salary rises and overpayments.
📚 Your Loan Details
📊 Your Repayment Summary
📅 Year-by-Year Projection
Shows balance, interest charged, repayments, and write-off if applicable. Green rows = loan cleared. Red rows = written off.
| Year | Salary | Interest | Repaid | Balance End | Status |
|---|
UK Student Loan Plans Explained
The UK has five active student loan repayment plans, each with different thresholds, interest rates, and write-off periods. Knowing which plan you are on is essential because it determines how much you repay each month and whether overpaying makes financial sense.
| Plan | Who | 2026/27 Threshold | Rate | Write-Off |
|---|---|---|---|---|
| Plan 1 | England/Wales/N.I. pre-2012 | £22,015 | 9% | 25 years (65 if earlier) |
| Plan 2 | England/Wales 2012–2022 | £27,295 | 9% | 30 years |
| Plan 4 | Scotland | £27,660 | 9% | 30 years |
| Plan 5 | England from Sept 2023 | £25,000 | 9% | 40 years |
| PG | Masters/Doctoral | £21,000 | 6% | 30 years |
Key point: You only repay while your income is above the threshold. If your salary drops below the threshold, repayments stop automatically. This makes student loans more like a "graduate tax" than conventional debt.
Should You Overpay Your Student Loan?
This is the most common question graduates ask. The answer depends entirely on your plan, balance, expected career earnings, and interest rate.
When Overpaying Makes Sense
- Plan 2 with high interest and high salary: If you earn £60,000+ with a £40,000 balance at 7% interest, you will likely clear the loan before the 30-year write-off. Overpaying saves thousands in interest.
- Small balance remaining: If you have £3,000 left and a pay rise coming, clearing it removes the administrative burden and frees up monthly cash flow.
- Psychological benefit: Some people simply hate having debt. If the mental relief is worth more than the mathematical optimum, overpay.
When Overpaying Is Wasted Money
- Low earners on Plan 2: If you earn £30,000 with a £50,000 balance, you will never repay in full. The balance is written off after 30 years. Overpayments are effectively a donation to the Treasury.
- Plan 1 borrowers: The interest rate is low (~4.3%) and the write-off is 25 years. If you have a mortgage or credit card debt at a higher rate, pay those first.
- You have no emergency fund: Never overpay a student loan if you lack 3–6 months of expenses in cash. Student loans do not affect your credit score; missed rent or mortgage payments do.
✅ The Martin Lewis Rule
MoneySavingExpert founder Martin Lewis advises: only overpay if you would clear the full balance including projected interest before the write-off date. Otherwise, treat it as a tax and put spare money into a pension or ISA instead.
How Interest Accrues on Student Loans
Interest is calculated daily and added monthly. The rate depends on your plan and, for Plan 2, your income:
- Plan 1: Lower of RPI or Bank of England base rate + 1%. Currently ~4.3%.
- Plan 2: RPI + 0% to 3% depending on income. At £27,295 or below: RPI only. Above £49,130: RPI + 3%. Sliding scale between. Currently capped at ~7.3%.
- Plan 4: RPI only. Currently ~4.3%.
- Plan 5: RPI only. Currently ~4.3%.
- Postgraduate: RPI + 3%. Currently ~7.3%.
Because interest compounds monthly, a £45,000 Plan 2 balance at 7% grows by roughly £263/month in interest alone. If your repayments are lower than the monthly interest, your balance increases even though you are paying — this is called negative amortisation.
Frequently Asked Questions
Do student loans affect my credit score?
No. Student loans do not appear on your credit file and do not affect your ability to get a mortgage, credit card, or car finance. However, mortgage lenders may ask about your monthly student loan repayment when calculating affordability, as it reduces your disposable income.
What happens if I move abroad?
You must still repay. The Student Loans Company requires overseas borrowers to complete an Overseas Income Assessment Form annually. Thresholds vary by country (e.g., Australia threshold is roughly £28,000 equivalent). If you fail to report your income, SLC can impose fixed monthly amounts and pursue debt through international collection agencies.
Can I claim tax relief on student loan interest?
No. Unlike US student loans, UK student loan interest is not tax-deductible. Your repayments are taken from post-tax income. The only tax interaction is that student loan repayments are calculated on your gross income before pension contributions, so salary sacrifice into a pension can reduce your student loan bill indirectly.
What is salary sacrifice and how does it affect repayments?
Salary sacrifice is when you agree to reduce your gross salary in exchange for a non-cash benefit, typically pension contributions. Because student loan repayments are based on gross income, reducing your salary by £5,000 via pension sacrifice reduces your annual student loan repayment by £450 (9% of £5,000 on Plan 2). You also save Income Tax and NICs. This is one of the most powerful — and legal — ways to reduce student loan costs while building wealth.
Can I have more than one student loan plan?
Yes. Many graduates have both an undergraduate Plan 2 loan and a separate Postgraduate Loan. You repay both simultaneously: 9% of income above the Plan 2 threshold (£27,295) AND 6% of income above the Postgrad threshold (£21,000). If you earn £35,000, you pay 9% of £7,705 (£693.45) plus 6% of £14,000 (£840) = £1,533.45/year total. The two loans are administered separately but both are deducted via PAYE or Self Assessment.