Student Loan Repayment Calculator UK
This student loan repayment calculator shows you exactly how much is deducted from your salary each month for the 2025/26 tax year. Whether you are on Plan 1, Plan 2, Plan 4, Plan 5 or a Postgraduate loan, enter your annual salary and the tool will calculate your monthly, annual and weekly repayments using the current repayment thresholds. Student loan deductions are taken automatically through PAYE at 9% of income above your plan's threshold, or 6% for Postgraduate loans. Many graduates do not realise how much is being taken until they check, and understanding your repayment amount helps you budget accurately and decide whether voluntary overpayments make financial sense for your situation.
Understanding Your Student Loan Repayment
Student loan repayments in the UK work like a graduate tax rather than a traditional debt. You only repay when your income exceeds your plan's threshold, and any remaining balance is written off after 25 to 40 years depending on your plan type. For 2025/26, Plan 1 starts at £22,015, Plan 2 at £27,295, Plan 4 at £27,660 and Plan 5 at £25,000. If you earn below the threshold, you pay nothing and it does not affect your credit score. Interest continues to accrue regardless of whether you are repaying, which is why many graduates see their balance grow in the early years of their career despite making regular payments.
Student Loan Repayment Thresholds for 2025/26
Each plan has its own repayment threshold, which is reviewed annually. Plan 2 thresholds were previously frozen, meaning more graduates are now repaying as wages rise. If you are unsure which plan you are on, check your Student Loans Company account or look at your payslip, which shows the plan type. You can also verify thresholds and interest rates on the GOV.UK student loan repayment page. If you have loans on multiple plans, repayments are calculated separately on each and both are deducted from your pay.
Should You Make Voluntary Overpayments?
For most graduates, voluntary overpayments are not financially worthwhile. If your salary means you will not clear the full balance before the write-off date, every extra payment is money you would never have had to repay. Early repayment only makes sense for high earners who will definitely repay in full. To see how student loan deductions interact with the rest of your pay, use our take home pay calculator, which factors in your loan plan alongside income tax and National Insurance. If you are self-employed, repayments are collected through your self-assessment tax return instead of PAYE.
Plan 1: 25 years. Plan 2: 30 years (or 40 for newer loans). Plan 4: 30 years. Plan 5: 40 years. Postgraduate: 30 years. Any remaining balance is cancelled.
For most graduates, voluntary overpayments are not recommended. If your salary means you will not repay in full before write-off, extra payments are effectively wasted. Early repayment mainly benefits high earners who will clear the full balance.
No. UK student loans do not appear on your credit report and have no impact on your credit score. However lenders consider your net income during affordability assessments.
Plan 1 and 4: lower of RPI or base rate plus 1%. Plan 2: sliding scale from RPI only (below threshold) to RPI plus 3% (above £49,130). Plan 5 and Postgraduate: RPI plus 3%.
You must notify the Student Loans Company and provide income evidence. Repayment thresholds are adjusted based on cost of living in your destination country.
This calculator provides estimates for guidance only. Results use 2025/26 HMRC rates. This is not financial, legal or professional advice. For regulated financial advice, speak to a qualified financial adviser.