UK Student Loan Repayment Calculator
Calculate your student loan repayments for Plan 1, 2, 4, 5 and Postgraduate loans (2025/26).
Repayment Breakdown
| Item | Value |
|---|
Write-Off Timeline
| Plan Type | Write-Off Age/Period |
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Enter your income and loan plan to calculate your student loan repayments.
Student Loan Repayment Calculator UK 2025/26
Use our free Student Loan Calculator to calculate exactly how much you’ll repay each month towards your UK student loan. Covers Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate loans with 2025/26 thresholds and interest rates.
Which Student Loan Plan Am I On?
Your repayment plan depends on when and where you studied:
| Plan | Who It Applies To | 2025/26 Threshold |
|---|---|---|
| Plan 1 | UK students who started before September 2012 (England/Wales), or all Scottish students on older loans | £22,015/year (£1,834/month) |
| Plan 2 | English/Welsh undergraduates who started between September 2012 and August 2023 | £27,295/year (£2,274/month) |
| Plan 4 | Scottish students who started between September 2012 and August 2023 | £27,660/year (£2,305/month) |
| Plan 5 | English/Welsh undergraduates starting from September 2023 onwards | £25,000/year (£2,083/month) |
| Postgraduate | Master’s and PhD loans (all regions, separate from undergraduate loans) | £21,000/year (£1,750/month) |
How Student Loan Repayments Work
Student loan repayments in the UK work like tax — your employer deducts them automatically through PAYE along with Income Tax and National Insurance. Here’s how it works:
- Calculate taxable income: Your gross annual salary minus your repayment plan threshold
- Apply 9% rate: You repay 9% of everything earned above the threshold
- Employer deducts: Your payroll subtracts this from your monthly payslip
- Remaining balance accrues interest: Interest is added to your loan based on your income level and the RPI inflation rate
Example: If you’re on Plan 2 and earn £45,000 per year:
- Taxable income: £45,000 – £27,295 = £17,705
- Annual repayment: £17,705 × 9% = £1,593.45
- Monthly repayment: £1,593.45 ÷ 12 = £132.79
Student Loan Interest Rates (2025/26)
Interest is added to your student loan balance daily. The rate you pay depends on your income:
| Plan | Interest Rate Formula | Max Rate |
|---|---|---|
| Plan 1 | RPI or RPI + 3% (whichever is lower) | RPI + 3% |
| Plan 2 | RPI when studying, then RPI + up to 3% based on income | RPI + 3% |
| Plan 4 | RPI + up to 3% based on income | RPI + 3% |
| Plan 5 | Capped at RPI (no additional interest) | RPI only |
| Postgraduate | RPI + up to 3% based on income | RPI + 3% |
As of early 2025, RPI is approximately 3.4%, meaning many borrowers see interest rates between 3.4% and 6.7% depending on their income.
When Do My Student Loan Repayments End?
Student loans are written off after a set period. Any remaining balance is cancelled:
| Plan | Write-Off Period |
|---|---|
| Plan 1 | 25 years after the April you were first due to repay, or age 65 (whichever comes first) |
| Plan 2 | 30 years after the April you were first due to repay |
| Plan 4 | 30 years after the April you were first due to repay |
| Plan 5 | 40 years after the April you were first due to repay |
| Postgraduate | 30 years after the April you were first due to repay |
Important: Plan 5 extends repayment to 40 years, significantly increasing the total amount most borrowers will repay over their lifetime compared to Plan 2.
What Happens If I Change Jobs?
Student loan repayments follow your income, not your employer:
- If you move to a new job, your new employer continues deducting through PAYE
- If you become self-employed, declare repayments through Self Assessment
- If you’re unemployed or earning below the threshold, repayments pause automatically
- If you earn below the threshold in one job but exceed it through combined income, you may still owe repayments
Does Tax Relief Affect Student Loan Repayments?
Certain professions qualify for tax relief that reduces your effective student loan interest:
- Teachers in England (from 2023 reforms)
- NHS staff on certain contracts
- Doctors during foundation training
Tax relief typically reduces your effective interest rate by 2%, though this doesn’t affect your repayment amount — only how quickly the balance grows.
Frequently Asked Questions
How much will I pay in student loan repayments on £45,000 salary?
On Plan 2 (threshold £27,295), you’d repay 9% of (£45,000 – £27,295) = £1,593.45 per year or £132.79 per month. This continues until your loan is cleared or written off after 30 years.
Can I voluntarily pay more towards my student loan?
Yes, but there’s usually no benefit. Extra payments don’t reduce your monthly obligations or stop interest accrual. However, paying off your loan early prevents decades of interest accumulation. Use our calculator to see if early repayment makes sense for your situation.
Do student loan repayments count as debt for mortgage applications?
Some lenders consider student loan monthly payments when calculating your debt-to-income ratio, potentially reducing how much you can borrow. However, since repayments are income-contingent and not traditional debt, many lenders treat them more favourably than credit card or personal loan debt.
What happens to my student loan if I die?
Student loans are written off when you die. The Student Loans Company will cancel any remaining balance upon receiving notification of death from your estate. Unlike other debts, this doesn’t come from your estate’s assets.
Will Plan 5 change to match the proposed £35,000 threshold?
The Conservative Party proposed raising the Plan 5 threshold to £35,000 in their 2024 manifesto. As of now, the threshold remains at £25,000 for 2025/26. Monitor official Student Loans Company announcements for confirmed changes.
Do I pay student loan repayments on benefits?
Benefits are generally not considered taxable income for student loan purposes. You won’t repay your student loan on Jobseeker’s Allowance, Employment and Support Allowance, Universal Credit, or Pension Credit. However, if you work part-time alongside benefits and exceed the threshold, repayments apply.
Related Calculators
- → Income Tax & NI Calculator — Calculate your total annual deductions including tax and National Insurance
- → Salary Calculator — See your complete take-home pay breakdown
- → Mortgage Affordability Calculator — Factor in student loan repayments when buying property