Student Loan Repayment Calculator UK (2026/27) Postgraduate & Overseas Support
Use this free UK student loan repayment calculator to calculate your exact monthly and annual student loan repayments for Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate loans. Built on the official 2026/27 thresholds from HMRC and the Student Loans Company. Includes salary sacrifice impact, projected write-off date and total lifetime repayment estimate.
UK Student Loan Repayment Calculator
Select your loan plan, enter your gross annual salary and outstanding balance to see your repayments instantly
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How UK Student Loan Repayment Works in 2026/27
UK student loan repayment is income-contingent, and you pay 9% of everything you earn above your plan's threshold, deducted automatically through PAYE like income tax. If you earn below the threshold, you pay nothing regardless of your balance. Any balance remaining at the end of your repayment term is written off automatically.
Student Loan Repayment Thresholds 2026/27
HMRC has updated the repayment thresholds for the current tax year. Here is how much you can earn before deductions start:
| Loan Plan Type | Annual Threshold (2026/27) | Repayment Rate |
|---|---|---|
| Plan 1 (Pre-2012) | £26,900 | 9% |
| Plan 2 (Post-2012) | £29,385 | 9% |
| Plan 5 (Newest) | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
How to use a Student Loan Refund Calculator?
Many graduates overpay their student loans without realizing it. You might be eligible for a refund if your annual income was below the threshold but deductions were still made, or if you started repaying before you were legally required to. To use a student loan refund calculator effectively, you need three things: your total annual gross salary, your specific loan plan (e.g., Plan 2 or Plan 5), and your P60 or final payslip for the tax year.
If the calculator shows that your total deductions exceed 9% of your income above the threshold, you can claim your money back directly from the Student Loans Company (SLC). Common reasons for refunds in 2026/27 include:
- Early Deductions: Repayments started before the April after you graduated.
- Fluctuating Income: You had a high-earning month (bonus/overtime) but your total yearly income was below the threshold.
- Wrong Loan Plan: Your employer deducted payments based on the wrong plan (e.g., Plan 1 instead of Plan 2).
Pro Tip: Always keep your payslips handy. Most "refund calculators" are estimates; the exact refund is verified by HMRC data shared with the SLC.
Student Loan Repayment Thresholds 2026/27 by Plan
Plan 1 for England/Wales before September 2012, or Northern Ireland. Threshold £26,900. Interest ~5.4% per annum. Written off after 25 years or age 65.
Plan 2 for England/Wales September 2012 to July 2023. Threshold £29,385. Interest ~7.1% per annum. Written off after 30 years. Around 75% of Plan 2 graduates never repay in full before write-off.
Plan 4 for Scotland (SAAS). Highest threshold at £32,745. Interest ~5.4% per annum. Written off after 30 years or age 65. Most Scottish graduates at average salaries repay nothing.
Plan 5 Plan 5 for England from August 2023. Lowest threshold at £25,000, meaning repayments start earlier in your career. Interest ~7.1% per annum. Written off after 40 years, a decade longer than Plan 2.
Postgraduate Loan for Masters and Doctoral loans. Threshold £21,000, repayment rate 6% (not 9%). If you hold both an undergraduate plan and a Postgraduate Loan, both are collected through PAYE simultaneously but calculated separately.
Advanced Repayment Scenarios: Overseas & Postgraduate
Unlike basic calculators, our tool supports complex repayment scenarios to ensure you aren't overpaying.
Repaying Student Loan While Living Overseas
If you move abroad, the £25,000 - £29,385 thresholds no longer apply directly. The Student Loans Company (SLC) uses a 'Price Level Index' to adjust your threshold based on the cost of living in your current country. Failure to notify SLC can result in 'Fixed Repayment' penalties.
Postgraduate and Undergraduate Concurrent Repayments
If you have both an undergraduate loan (e.g., Plan 2) and a Postgraduate loan, you will pay 15% in total (9% for Plan 2 + 6% for PG) on any income above £29,385. This is often called the 'hidden graduate tax'.
Plan 5 Student Loan Repayment: Key Differences from Plan 2
Plan 5 graduates start repaying at £25,000 versus £29,385 for Plan 2. On a £27,000 salary, a Plan 5 graduate pays £180 per year; a Plan 2 graduate pays nothing. The 40-year write-off means the IFS estimates around 70% of Plan 5 graduates will repay in full, compared to just 25% on Plan 2. For Plan 5, salary sacrifice and pension contributions matter more, not less, because the repayment window is longer and the threshold is lower.
Research published by the Institute for Fiscal Studies estimates that around 70% of Plan 5 graduates will repay their loan in full within the 40-year window, compared to approximately 25% of Plan 2 graduates. For the majority of current students, Plan 5 is not a debt that will be quietly written off. It is a long-term income-contingent obligation that must be factored into your career and financial planning.
Plan 5 Worked Example: How Much Do I Repay on My Student Loan?
On a £25,000 salary, a Plan 5 graduate pays nothing because their income sits exactly at the threshold.
On a £30,000 salary, repayable income is £5,000 and the annual repayment is £450, which is £37.50 per month. On a £40,000 salary, repayable income is £15,000 and the annual repayment is £1,350, which is £112.50 per month. On a £55,000 salary, repayable income is £30,000 and the annual repayment is £2,700, which is £225 per month.
These figures change each year as your salary grows. Use the calculator above with your own salary and balance to see the full 40-year projection, including interest accumulation and your estimated write-off position.
How Salary Sacrifice Reduces Your Student Loan Repayment
Student loan repayments are calculated on your taxable income, not your gross salary. Salary sacrifice through a workplace pension, cycle to work scheme, or electric vehicle lease reduces your taxable income directly. Every £1 sacrificed removes £1 from the repayment calculation, saving you 9p in student loan deductions on an undergraduate plan or 6p on a Postgraduate Loan.
If your taxable income after sacrifice falls below your plan's threshold, your repayment drops to zero. A Plan 5 graduate earning £30,000 who sacrifices £6,000 into a pension sees their taxable income fall to £24,000, below the £25,000 threshold, saving £450 in loan repayments, £1,200 in income tax, and £420 in National Insurance from one decision. Use the salary sacrifice toggle in the calculator to model your own figure.
Pro Tip: Lower Your Repayments Legally
Using Salary Sacrifice for pension contributions reduces your "Gross Taxable Income." Since repayments are calculated on this figure, increasing your pension can lower your monthly student loan deductions significantly.
Student Loan Interest Rates 2026/27
Plan 1 and Plan 4: approximately 5.4% per annum (lower of RPI or Bank of England base rate plus 1%). Plan 2, Plan 5, and Postgraduate: approximately 7.1% per annum linked to RPI. Under Plan 2, a taper applies, and those above £52,000 pay RPI plus 3%. For graduates unlikely to repay before write-off, the interest rate has little practical impact. What matters is total repaid before cancellation, which depends on salary, not balance.
If you want to understand the exact cost behind repayments, use our Interest Amount Calculator to convert total interest paid into an annual rate and compare loan offers with confidence.
Student Loan Write-Off Dates UK
Write-off is automatic, HMRC stops collection and the Student Loans Company cancels the remaining balance. The cancelled amount is not taxable income. Write-off periods from the April after you first entered repayment: Plan 1 25 years or age 65. Plan 2 30 years. Plan 4 30 years or age 65. Plan 5 40 years. Postgraduate 30 years. The progress bar in the calculator shows where you sit in your repayment window.
Should You Make Voluntary Overpayments?
For most Plan 2 and Plan 5 graduates, voluntary overpayments are not financially worthwhile. If your balance will be written off regardless, you are paying extra to clear a debt that would have been cancelled for free. Overpayments only make sense if the calculator projects your balance reaching zero before your write-off date, typically high earners with smaller loans or those on Plan 1. If write-off is the likely outcome, that money is better placed in a pension or ISA.
Student Loan Repayment by Salary: What You Actually Pay
Many graduates search for a student loan repayment table to understand what comes out of their pay at different salary levels. The figures below show annual and monthly deductions for Plan 2 and Plan 5 in 2026/27. These are the two most common plans for current and recent graduates in England.
| Gross Salary | Plan 2 Annual | Plan 2 Monthly | Plan 5 Annual | Plan 5 Monthly |
|---|---|---|---|---|
| £25,000 | £0 | £0 | £0 | £0 |
| £28,000 | £0 | £0 | £270 | £22.50 |
| £30,000 | £56 | £4.65 | £450 | £37.50 |
| £35,000 | £506 | £42.15 | £900 | £75 |
| £40,000 | £956 | £79.65 | £1,350 | £112.50 |
| £50,000 | £1,856 | £154.65 | £2,250 | £187.50 |
| £60,000 | £2,756 | £229.65 | £3,150 | £262.50 |
Plan 5 graduates pay more at every salary point because the threshold is £4,385 lower than Plan 2. The difference narrows at higher salaries but is most significant in the £25,000 to £32,000 range, where Plan 2 graduates pay nothing or very little while Plan 5 graduates are already in repayment. Use the calculator above to check your own figures with your exact salary and outstanding balance.
How Student Loan Repayments Are Calculated
Understanding how the calculation works helps you predict what will appear on your payslip each month. The Student Loans Company does not take a fixed monthly payment like a mortgage. Instead, the annual repayment is worked out first, then divided across your pay periods.
The formula is straightforward. Take your gross annual salary, subtract your plan threshold, and multiply the result by your repayment rate. On Plan 2 with a £35,000 salary, the repayable income is £35,000 minus £29,385, which is £5,615. Multiply by 9% and the annual student loan repayment is £505.35, or £42.11 per month. Your employer deducts this through PAYE in the same way as income tax and National Insurance.
If you receive a bonus or overtime in one month, the deduction for that pay period is calculated on your monthly earnings multiplied by 12, then divided by 12. A large one-off payment can push your monthly deduction higher temporarily, even if your annual income remains below the threshold overall. In this case you are entitled to a refund for any overpayment at the end of the tax year. The calculator on this page models your annual repayment based on a consistent salary. For variable income, enter your expected average annual earnings to get the most accurate projection.
Interest is added to your balance separately. For Plan 2 and Plan 5, the current rate is approximately 7.1% per annum, applied daily on the outstanding balance. Your monthly repayment reduces the balance, but if the repayment is smaller than the interest added, the balance grows. This is common on lower salaries in the early years of a career and is one reason the write-off date matters more than the balance for most graduates.
Should You Pay Off Your Student Loan Early? And Which Plan First?
Whether to make voluntary overpayments depends entirely on your projection, not on general advice. The first step is checking whether the calculator shows your balance reaching zero before your write-off date. If it does, early repayment can save you a significant amount in interest. If the balance is still outstanding at write-off, any extra payments you made were a gift to the Student Loans Company for a debt that would have been cancelled anyway.
For graduates holding more than one loan, the question of which student loan to pay off first requires separate projections for each plan. A Plan 1 loan with a 25-year write-off window and a lower interest rate is more likely to be repaid in full before cancellation than a Plan 2 or Plan 5 loan. If you are close to the Plan 1 write-off date and still carry a balance, targeted overpayments may be worth considering. Your Postgraduate Loan accrues interest at the same rate as Plan 2 and Plan 5 but has a £21,000 threshold, meaning repayments begin at a lower salary. Running each plan separately through the calculator gives you a clear answer based on your own numbers.
As a general rule, graduates on Plan 2 or Plan 5 with average salaries and full loan balances should not make voluntary overpayments. The IFS data shows the majority will not repay in full before write-off. Pension contributions and ISA savings typically deliver better long-term value than paying down a balance that is likely to be cancelled.
UK Student Loan Repayment Calculator 2026/27 Related FAQs
1. How much do I repay on a Plan 5 student loan in 2026/27?
On Plan 5, you repay 9% of all income above £25,000 per year. On a £30,000 salary, your repayable income is £5,000 and your annual repayment is £450, which is £37.50 per month. On a £40,000 salary, your repayable income is £15,000 and your annual repayment is £1,350 or £112.50 per month. If you earn £25,000 or below, you pay nothing. Plan 5 loans are written off after 40 years from the April you were first due to repay, making this the longest repayment window of any UK student loan plan.
2. What are the student loan repayment thresholds for 2026/27?
The confirmed 2026/27 repayment thresholds are as follows: Plan 1 at £26,900 per year, Plan 2 at £29,385 per year, Plan 4 at £32,745 per year, Plan 5 at £25,000 per year, and Postgraduate Loan at £21,000 per year. You repay nothing on income below your threshold. The thresholds are reviewed by the government annually and can increase, be frozen, or change depending on policy decisions. Always verify the current thresholds at gov.uk before making major financial decisions.
3. Does salary sacrifice reduce my student loan repayments?
Yes, and often significantly. Student loan repayments are calculated on your taxable income rather than your gross salary. Salary sacrifice arrangements such as workplace pension contributions, cycle to work schemes and electric vehicle leasing all reduce your taxable income. If your taxable income after sacrifice falls below your plan threshold, your student loan repayment drops to zero for that period. Use the salary sacrifice toggle in the calculator above to see your exact saving based on your salary and proposed sacrifice amount. This is an entirely legal and widely used strategy.
4. When will my student loan be written off?
Write-off periods start from the April after you were first due to repay, typically the April following graduation or leaving your course. Plan 1 loans are written off 25 years after this date or when you reach age 65, whichever comes first. Plan 2 loans are written off after 30 years. Plan 4 loans are written off after 30 years or at age 65. Plan 5 loans are written off after 40 years. Postgraduate Loans are written off after 30 years. Write-off is automatic and the cancelled balance is not taxable income in the UK.
5. Should I make voluntary overpayments on my student loan?
For most Plan 2 and Plan 5 graduates who are not projected to repay their full balance before write-off, voluntary overpayments are not financially beneficial. Any overpayments reduce a balance that would have been cancelled for free at the end of the repayment period. The exception applies to graduates on higher salaries with smaller balances who are on track to repay in full before write-off. Use the calculator above to check your own projection. If your balance reaches zero before the write-off year, overpayments make sense. If write-off is likely regardless, your money is better placed in a pension or ISA.
Conclusion
This free UK student loan repayment calculator uses the 2026/27 official thresholds from the Student Loans Company and HMRC. Use this student loan calculator 2026/27, covering Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate loans, to verify current rates and thresholds before making major financial decisions. Always cross-check figures with the official gov.uk student loan repayment guidance.