UK Student Loan Repayment Calculator
Monthly repayments for Plan 1, 2, 4, 5 and Postgraduate loans at 2026/27 thresholds, interest at each plan’s current rate, a year-by-year projection to payoff or write-off, a second Postgraduate loan, overpayments and salary sacrifice.
How it works
Repayment = 9% × (income − plan threshold) [6% above £21,000 for Postgraduate]; 2026/27 thresholds: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000; each month balance × (1 + rate ÷ 12) − repayment, until £0 or the write-off date
UK student loans behave like a graduate tax: you repay a fixed share of earnings above a threshold regardless of the balance, and whatever is left after the plan’s term is cancelled (25 years for Plan 1 loans from 2006–2012, 30 years for Plan 2, Plan 4 and Postgraduate loans, 40 years for Plan 5). For 2026/27 the thresholds are £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4), £25,000 (Plan 5) and £21,000 (Postgraduate, at 6%). Interest from 1 September 2026 is 4.1% on Plans 1, 4 and 5; Plan 2 charges RPI (4.1%) up to £29,385 of income plus up to 3% more on a sliding scale to £52,885, capped at 6% until 31 August 2027, and Postgraduate loans are also capped at 6%. The calculator projects your salary, thresholds and interest month by month — the Plan 2 threshold is frozen until April 2030, Plan 5 starts rising with RPI in April 2027, and from 2027/28 interest follows the RPI you choose — and shows whether the balance clears or is written off, the total you repay in cash and in today’s money, and whether voluntary overpayments would save money.
Worked example
£38,000 on Plan 2 in 2026/27: 9% × (£38,000 − £29,385) = £775 a year, about £64.61 a month. Interest is 4.1% + 3% × (38,000 − 29,385) ÷ 23,500 = 5.20%, so a £48,000 balance gains about £2,500 of interest a year — more than three times the repayments. With 3% pay rises and 3% RPI the balance never clears: after the 22 years left you have repaid about £30,100 (£21,200 in today’s money) and about £82,200 is written off.
Sources: GOV.UK — Repaying your student loan: how much you repay · GOV.UK — Student loans: a guide to terms and conditions 2026 to 2027 · GOV.UK — Interest rate cap introduced to protect Plan 2 borrowers · GOV.UK — Budget 2025 (Plan 2 threshold maintained for three years from April 2027)
Frequently asked questions
Should I overpay?
Only if you are likely to clear the loan before it is written off. Enter an overpayment under More options: the calculator compares the total you would repay with and without it. For many Plan 2 and Plan 5 borrowers on average pay, overpaying just adds to the total because the rest would have been cancelled.
What if I have two loans?
Plan 1, 2, 4 and 5 repayments are 9% in total of income above the lowest threshold of your plans. A Postgraduate loan adds a separate 6% above £21,000, so you can pay 15% on part of your income. Turn on “I also have a Postgraduate loan” to model both.
What interest rate applies in 2026/27?
From 1 September 2026: 4.1% on Plan 1, Plan 4 and Plan 5; on Plan 2, 4.1% if your income is £29,385 or less, plus up to 3% on a sliding scale up to £52,885 (for example 5.46% at £40,000), capped at 6% — reached at about £44,300 — and 6% while studying; 6% on Postgraduate loans. The 6% cap runs to 31 August 2027.
Does salary sacrifice reduce my repayments?
Yes. Repayments are based on pay after salary sacrifice, so sacrificing pay into a pension lowers them. Ordinary pension contributions taken from net pay do not.
When does the loan get written off?
Plan 1 loans from September 2006 to August 2012: 25 years after you were first due to repay. Plan 2, Plan 4 (post-2007) and Postgraduate: 30 years. Plan 5: 40 years. Older Plan 1 and Plan 4 loans are cancelled at age 65. Choose “From when I started repaying” to work out the years left.
Related calculators
Uses 2026/27 student loan thresholds and the interest rates from 1 September 2026. Future thresholds, RPI and pay are assumptions. Educational estimate, not financial advice.