Student Loan Calculator UK — Free 2026
Estimate your monthly student loan repayments and time to repay. Covers Plan 1, 2, 4, 5 and Postgraduate loans with current thresholds and interest rates.
How It Works
- Enter your salary and loan balance
- Select your plan type
- Review repayment estimate
Understanding UK Student Loan Repayments
UK student loans work differently from commercial loans. Repayments are linked to your income, not the amount you borrowed, and the loan is written off after a set period regardless of the remaining balance. This makes them more like a graduate tax than a traditional debt.
Repayment Thresholds and Rates
| Plan | Threshold | Rate | Write-off | Interest |
|---|---|---|---|---|
| Plan 1 | £24,990 | 9% | 25 years | Lower of RPI or base rate +1% |
| Plan 2 | £28,745 | 9% | 30 years | RPI + up to 3% |
| Plan 4 | £31,395 | 9% | 30 years / age 65 | Lower of RPI or base rate +1% |
| Plan 5 | £25,000 | 9% | 40 years | RPI only |
| Postgrad | £21,000 | 6% | 30 years | RPI + 3% |
How Repayments Are Calculated
You repay a percentage of everything you earn above your plan's threshold. For example, on Plan 2 with a £35,000 salary: (£35,000 − £28,745) × 9% = £563 per year, or about £47 per month. If your income drops below the threshold, repayments stop automatically. Repayments are collected through PAYE by your employer.
For a complete picture of all salary deductions including tax, NI and student loan, use our UK Salary Calculator.
Will I Repay My Loan in Full?
Most Plan 2 borrowers will not repay their loan in full before it is written off after 30 years. The Institute for Fiscal Studies estimates that around 70% of graduates will have some debt written off. Whether you repay in full depends on your starting balance, salary trajectory, and the interest rate applied. Graduates on higher salaries who earn above £50,000 relatively early in their career are most likely to repay in full and may benefit from voluntary overpayments.
For most borrowers, student loan repayments function more like a graduate tax than a traditional debt. If you are unlikely to repay in full, making voluntary overpayments would simply reduce the amount written off rather than saving you money. The key question is whether your projected total repayments over 25–40 years exceed the outstanding balance — if not, overpaying is financially disadvantageous.
Multiple Loans and Simultaneous Repayment
If you have both an undergraduate loan (Plan 1, 2, 4, or 5) and a postgraduate loan, both are repaid simultaneously from your salary. The undergraduate loan is repaid at 9% above its threshold, and the postgraduate loan at 6% above its threshold. This means total deductions can reach 15% of income above the lower threshold, which is a significant payslip deduction alongside income tax and National Insurance.
Frequently Asked Questions
You repay 9% of everything you earn above your plan's threshold. For Plan 2 with a £35,000 salary: (£35,000 - £28,745) × 9% = £563/year or about £47/month. Repayments are deducted automatically through PAYE.
Plan 1 loans are written off 25 years after the April you were first due to repay. Plan 2 loans are written off 30 years after. Plan 4 loans are written off 30 years after, or when you turn 65 (whichever is first). Plan 5 loans are written off 40 years after graduation.
Plan 1 and 4 loans charge the lower of RPI or Bank of England base rate + 1%. Plan 2 loans charge RPI + up to 3% depending on income. Plan 5 loans charge RPI only. Rates are updated each September based on the March RPI figure.
For most borrowers, overpaying is not advisable because the loan is written off after 25-40 years and many people never fully repay. Overpaying only makes financial sense if you expect to repay the full balance before write-off. Use this calculator to estimate whether you would repay in full.
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