NZ Student Loan Repayment Calculator
Work out compulsory New Zealand student loan repayments (12% of income above $24,128), years to repay an interest-free loan, and the effect of extra voluntary payments.
How it works
NZ-based: repayment = 12% × (income − $24,128), no interest. Overseas: fixed annual amount by balance ($1,000–$5,000) with 3.3% interest
New Zealand student loans are interest-free while you live in the country, so the only question is how fast the compulsory 12% deduction above the threshold clears the balance. Because payments scale with income, a pay rise shortens the loan noticeably. Once you are overseas for more than six months the loan starts accruing interest (3.3% for 2025/26) and the repayment switches to fixed annual amounts based on the balance, which is why balances of expats often grow. Voluntary extra repayments have no penalty and, while in NZ, no interest saving — they simply free up 12% of your pay sooner.
Worked example
$35,000 loan on $62,000 income rising 3% a year: about $4,545 the first year, clearing in 7 years with zero interest.
Frequently asked questions
Is it worth paying extra on an interest-free loan?
Financially, no — money in a savings account earns more than 0%. Many people still pay extra for the certainty and to raise their take-home pay sooner.
What if I have two jobs?
Use tax code SL on your main job only; secondary-job income is repaid at 12% from the first dollar unless you apply for a special deduction rate.
Related calculators
Uses New Zealand 2025/26 tax year rates and thresholds (1 April 2025 – 31 March 2026). Inland Revenue changes thresholds from time to time — check ird.govt.nz for the current figures. Educational estimate, not tax advice.