Student Loan Repayment Calculator (UK)
The UK student loan system can be confusing, especially when trying to figure out how much you’ll repay and for how long. This comprehensive guide and calculator will help you estimate your repayments based on your salary, loan plan, and financial assumptions, ensuring you’re equipped with the knowledge to make informed financial decisions.
Enter your student loan details below to get a real-time debt payoff cost calculation.
Key Information:
Understanding Your Student Loan
Your student loan repayments are automatically deducted from your salary when you earn above the threshold for your loan type. The amount you repay depends on your income, not the amount you borrowed. After 30 years (or 40 years for Plan 5), any remaining loan is written off, regardless of the amount.
When do you start repaying?
You’ll start repaying your loan the April after you graduate and only when your income is above the repayment threshold for your loan type.
How is interest calculated?
Interest rates vary depending on your loan plan and income level. They’re based on the Retail Price Index (RPI) plus a percentage that varies between loan plans.
Please Note: This calculator does not constitute financial advice.
How to Use this Student Loan Repayment Calculator
Using our student debt repayment calculator is simple:
- Enter your annual salary as describe in image below.
2. Select your Loan Plan type as shown in image below.
3. Enter your loan amount in the total loan amount section as seen in the image below
4. Now click on calculate repayments button to see your repayment summary
A Newcastle graduate on Plan 2 earning £30,000 sees £132 annual repayments, while a £50,000 earner pays £1,947. The calculator’s graphs make trends clear.
How Student Loan Repayments Work in the UK
Student loans in the UK are income-contingent. This means you only repay your loan when your income exceeds a specific threshold, and the amount you repay is a percentage of the income above that threshold. The type of repayment plan you are on depends on when and where you studied.
Loan Plan Types
| Plan | Applies To | Repayment Rate | Threshold (2025) | Interest Rate |
|---|---|---|---|---|
| Plan 1 | England/Wales pre-2012 | 9% | £24,990 | RPI + 1% |
| Plan 2 | England/Wales 2012-2023 | 9% | £27,295 | RPI + up to 3% |
| Plan 4 | Scotland students | 9% | £27,660 | RPI |
| Plan 5 | England from Sept 2023 | 9% | £25,000 | RPI |
| Postgraduate | All postgraduate UK | 6% | £21,000 | RPI |
You may be on more than one plan if you have both undergraduate and postgraduate loans. In that case, your repayment is split accordingly.
Student Debt Repayment Calculator
Use the calculator above to estimate your annual and total student loan repayments.
Following input can be generated with this student debt repayment calculator:
- Loan type: Plan 1, 2, 4, 5, or Postgraduate
- Graduation year
- Initial student loan balance
- Current annual salary (pre-tax)
- Expected salary growth rate
- Inflation rate
- Interest rate assumptions (if known)
This calculator is for estimation purposes only. Actual repayment amounts may vary based on government policy changes, income changes, and interest fluctuations.
Understanding Your Results
Once you input your details, the calculator will show:
Annual Repayments
You will see how much you are expected to repay each year. This amount is based on your income above the threshold multiplied by the applicable percentage.
Total Repayment Over Time
This includes a projection of how much you will repay over the life of the loan, assuming steady income growth and interest accumulation.
Time Until Loan Is Repaid or Written Off
Depending on your earnings and plan type, loans are written off after a set number of years:
- Plan 1: 25 years after April you were first due to repay
- Plan 2: 30 years after April you were first due to repay
- Plan 4: 30 years after April you were first due to repay
- Plan 5: 40 years after April you were first due to repay
- Postgraduate: 30 years after April you were first due to repay
Should You Repay Early?
Pros:
- Reduces total interest paid over time
- Frees you from long-term debt
Cons:
- Loan may be written off before full repayment
- Overpaying might not offer financial advantage unless you’re a high earner
Tip: Martin Lewis from MoneySavingExpert offers great insights on whether early repayment is worth it: Read the guide
Example Scenarios
Scenario 1: Graduate on Plan 2
- Salary: £30,000
- Balance: £25,000
- Salary growth: 3% per year
First year repayment: £30,000 – £27,295 = £2,705 over threshold 9% of £2,705 = £243.45 annually (~£20/month)
Scenario 2: Graduate on Plan 5
- Salary: £45,000
- Balance: £60,000
First year repayment: £45,000 – £25,000 = £20,000 over threshold 9% of £20,000 = £1,800 annually (~£150/month)
FAQs
How is student loan repayment calculated in the UK?
It’s 9% (or 6% for postgrad) of earnings above a threshold based on your loan plan.
Do I repay my loan if I’m unemployed or earn below the threshold?
No. Repayments only occur when income exceeds the threshold.
Can I have more than one loan plan?
Yes. Payments are split between plans based on how much you earn.
Does interest accrue while I’m not working?
Yes. Interest is applied regardless of employment status.
Can I move abroad and avoid repaying?
No. You’ll still need to repay, and must inform the Student Loans Company.
When is my loan written off?
It depends on the plan:
- Plan 1: After 25 years
- Plan 2: After 30 years
- Plan 5: After 40 years
Final Thoughts
Understanding your student loan repayments can help you plan better for your financial future. Use the calculator to run scenarios, estimate long-term costs, and assess whether early repayment makes sense for your income trajectory.
We have also published blog posts on Plan and Mange your loans effectively , Best Student Loan Repayment Calculator & Calculate Repayment Student Loan read these blogs to get more insights on student loans & this free to use loan payoff estimator calculator.
Always consult official government resources and trusted financial advice before making major financial decisions.
Resources
MoneySavingExpert Student Loan Guide