Answers · UK 2025/26
How much is my Postgraduate Loan repayment on a £45,000 salary?
On a £45,000 salary in 2026/27, a Postgraduate Loan repayment is £1,440 for the year (6% of the £24,000 above the £21,000 threshold), leaving take-home pay of £34,479.60 a year after Income Tax, National Insurance and the loan repayment -- about £2,873.30 a month.
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Postgraduate Loans are repaid at 6% of income above a 2026/27 threshold of £21,000. On a £45,000 salary, the amount above the threshold is £24,000, so the annual repayment is 6% of £24,000, which is £1,440, or £120 a month, deducted automatically through PAYE. The underlying Income Tax on £45,000 is £6,486 (20% of the £32,430 taxable after the £12,570 Personal Allowance) and National Insurance is £2,594.40 (8% of the same £32,430), so total deductions are £10,520.40, leaving take-home pay of £34,479.60 a year, around £2,873.30 a month. Someone repaying both a Plan 2 undergraduate loan (threshold £29,385) and a Postgraduate Loan (threshold £21,000) simultaneously on a £45,000 salary would see a combined student loan deduction of 9% of £15,615 (£1,405.35) plus 6% of £24,000 (£1,440), totalling £2,845.35 a year -- a meaningful reduction in take-home pay that is often underestimated by graduates comparing job offers.
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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.