Answers · UK 2025/26
How much is my Postgraduate Loan repayment on a £40,000 salary?
On a £40,000 salary in 2026/27, a Postgraduate Loan repayment is £1,140 for the year (6% of the £19,000 above the £21,000 threshold), leaving take-home pay of £31,179.60 a year after Income Tax, National Insurance and the loan repayment -- about £2,598.30 a month.
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Postgraduate Loans are repaid at 6% of income above a 2026/27 threshold of £21,000. On a £40,000 salary, the amount above the threshold is £19,000, so the annual repayment is 6% of £19,000, which is £1,140, or £95 a month, deducted automatically through PAYE. The underlying Income Tax on £40,000 is £5,486 (20% of the £27,430 taxable after the £12,570 Personal Allowance) and National Insurance is £2,194.40 (8% of the same £27,430), so total deductions are £8,820.40, leaving take-home pay of £31,179.60 a year, around £2,598.30 a month. If you also carry a Plan 2 undergraduate loan alongside this Postgraduate Loan, the combined deduction above the Plan 2 threshold of £29,385 would be 15% of the amount above that threshold, since the two loans are calculated separately against their own thresholds and both come out of the same pay packet.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.