Student Loan Repayment Calculator

See what comes off each payslip for your student loan, how long you will repay for and whether you will clear it before it is written off. Plans 1, 2, 4 and 5 take 9% of pay above the threshold (Plan 2: £29,385 a year in 2026/27); Postgraduate Loans take 6% above £21,000.

Updated 2026-10-03 · 2026/27 HMRC rates

Student loan repayment per month£42£505 a year · take-home after tax, NI and loan £2,351.22 per month · 2026/27

Plan 2 threshold per month	£2,448 (£29,385 a year, 9%)
Undergraduate deduction (Plan 2, lowest threshold)	£42
Interest rate now	4.8%
Total repaid (no overpayment)	£70,509
Written off after 30 years	£106,689

Projection holds repayment thresholds at today’s level and uses today’s interest rate, so it is cautious. Payroll works per pay period: a one-off bonus month can trigger a deduction even if your annual salary is under the threshold.

Balance

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Key facts

The personal allowance stays at £12,570 in 2026/27 and is reduced by £1 for every £2 of adjusted net income over £100,000, so it is gone entirely at £125,140 (HMRC income tax rates and allowances).
In England, Wales and Northern Ireland, 2026/27 income tax is 20% on the first £37,700 of taxable income, 40% up to £125,140 and 45% above that (HMRC rates and thresholds for employers 2026 to 2027).
Scotland has six bands in 2026/27: 19% starter on the first £3,967 of taxable income, 20% basic to £16,956, 21% intermediate to £31,092, 42% higher to £62,430, 45% advanced to £125,140 and 48% top above that (HMRC rates and thresholds for employers 2026 to 2027).
Budget 2025 extended the freeze on income tax thresholds and the equivalent employee and self-employed National Insurance thresholds for a further three years, from April 2028 to April 2031 (HM Treasury Budget 2025).
Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 a year and 2% above that in 2026/27 (HMRC rates and thresholds for employers 2026 to 2027).
Employers pay 15% National Insurance on earnings above the £5,000 secondary threshold, and eligible employers can claim an Employment Allowance of £10,500 (HMRC rates and thresholds for employers 2026 to 2027).
Self-employed people pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270 and 2% above that; voluntary Class 2 costs £3.65 a week if profits are below £7,105 (GOV.UK self-employed National Insurance rates).
Dividend tax rose by 2 percentage points from April 2026: the basic rate is now 10.75% and the higher rate 35.75%, while the additional rate stays at 39.35% and the dividend allowance stays at £500 (GOV.UK tax on dividends).

Student loan repayment thresholds for 2026/27

Repayments come out of your pay through PAYE once you earn above your plan's threshold. Payroll uses the weekly or monthly figure, rounded down to the pound. The interest rates are the ones GOV.UK shows as "currently charged" in October 2026.

Plan	Yearly	Monthly	Weekly	Rate	Interest	Written off
Plan 1	£26,900	£2,241	£517	9%	4.1%	25 years
Plan 2	£29,385	£2,448	£565	9%	4.1%–6%	30 years
Plan 4	£33,795	£2,816	£649	9%	4.1%	30 years
Plan 5	£25,000	£2,083	£480	9%	4.1%	40 years
Postgraduate	£21,000	£1,750	£403	6%	6.0%	30 years

Which plan am I on?

Your plan is shown in your online student loan account and is the one your employer should use. Write-off periods count from the April you were first due to repay; older Plan 1 and Plan 4 loans have different rules.

Plan 1: English and Welsh students who started before September 2012, and students from Northern Ireland.
Plan 2: English and Welsh students who started between September 2012 and July 2023.
Plan 4: Scottish students.
Plan 5: English students who started on or after 1 August 2023. Repayments began in April 2026.
Postgraduate Loan: Master’s and doctoral loans from England and Wales, repaid alongside any undergraduate plan.

How much will I repay at my salary?

Repayments depend only on income, not on how much you borrowed. Yearly repayments in 2026/27:

Salary	Plan 1	Plan 2	Plan 4	Plan 5	Postgraduate
£25,000	£0	£0	£0	£0	£240
£30,000	£279	£55	£0	£450	£540
£35,000	£729	£505	£108	£900	£840
£45,000	£1,629	£1,405	£1,008	£1,800	£1,440
£60,000	£2,979	£2,755	£2,358	£3,150	£2,340

Two loans at once

If you have more than one undergraduate plan, you don't pay 9% twice. You repay 9% of income over the lowest of your thresholds, and the Student Loans Company shares it between the loans. With Plan 1 and Plan 2 on £40,000, the deduction is £1,179 a year, the same as Plan 1 alone.

A Postgraduate Loan is different: it adds 6% of income over £21,000 on top. A graduate on £40,000 with Plan 2 and a Postgraduate Loan repays £955 plus £1,140, £2,095 in total.

Will you ever pay it off? Interest and write-off

Plan 2 interest depends on income: 4.1% up to £29,385, rising on a sliding scale to 6% from £52,885. At £45,000 you are charged 6.0%. Plans 1, 4 and 5 are charged 4.1% and Postgraduate Loans 6%.

This projection is for a £50,000 Plan 2 balance, with salary growing 3% a year and thresholds held at today's level, which slightly overstates repayments.

Starting salary	Total repaid	Outcome
£30,000	£49,099	£163,525 written off after 30 years
£45,000	£113,327	£48,606 written off after 30 years
£60,000	£97,998	Cleared in 21 years

Should you make voluntary overpayments?

Only if you are likely to clear the loan anyway. On the £45,000 example, paying an extra £100 a month means clearing it in 25 years and repaying £108,672 in total, against £113,327 without overpaying. On £60,000, an extra £200 a month changes the total from £97,998 to £72,881.

If your balance would be written off, overpaying just adds to what you hand over. Paying into a pension or saving the money usually gives a better return. Use the overpayment field in the calculator to test your own numbers.

Student loans and tax

Student loan repayments are not a tax and do not reduce your income tax. They are worked out on gross pay, after salary sacrifice but before pension contributions made under relief at source. Because deductions are per pay period, a bonus or overtime month can trigger a repayment even if your annual pay is under the threshold. If you earn under the threshold for the whole tax year, you can ask for that money back.

The Plan 2 threshold is frozen at £29,385 for three years from April 2027 (Budget 2025), so repayments will rise as pay rises.

Frequently asked questions

Is student loan repayment taken before or after tax?

It is worked out on your gross pay (before tax), but deducted alongside tax and NI. It is not tax-deductible, so it does not reduce your income tax.

How much is Plan 2 student loan repayment a month?

9% of pay above £2,448 a month. On £35,000 a year that is about £42 a month.

Is student loan repayment taken before or after tax?

It is worked out on pay before tax but is not tax-deductible. Tax, NI and the loan are all taken from the same gross pay.

What happens to my student loan if I earn under the threshold?

You repay nothing, and interest still builds up. The balance is written off at the end of the term.

Can I get a refund of student loan repayments?

Yes, if your yearly income was under the threshold, or if you repaid more than your balance. Apply through your online account with the Student Loans Company.

How do repayments work if I am self-employed?

You repay through Self Assessment, at the same rate on income above the yearly threshold.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.