Answers · UK 2025/26

How much is my Postgraduate Loan repayment on a £55,000 salary?

On a £55,000 salary in 2026/27, a Postgraduate Loan repayment is £2,040 for the year (6% of the £34,000 above the £21,000 threshold), leaving take-home pay of £40,417.40 a year after Income Tax, National Insurance and the loan repayment -- about £3,368.12 a month.

Last updated: 10 July 2026Last reviewed: 10 July 2026How we verify

Full answer

Postgraduate Loans are repaid at 6% of income above a 2026/27 threshold of £21,000. On a £55,000 salary, the amount above the threshold is £34,000, so the annual repayment is 6% of £34,000, which is £2,040, or £170 a month, deducted automatically through PAYE. The underlying Income Tax on £55,000 is £9,432 (£7,540 at 20% on the first £37,700 of taxable income, plus £1,892 at 40% on the remaining £4,730) and National Insurance is £3,110.60 (£3,016 at 8% up to the Upper Earnings Limit, plus £94.60 at 2% above it), so total deductions are £14,582.60, leaving take-home pay of £40,417.40 a year, around £3,368.12 a month. At this salary, anyone also repaying an undergraduate Plan 2 or Plan 5 loan alongside the Postgraduate Loan faces a combined marginal deduction rate of 51% on further pay rises within the higher-rate band (40% Income Tax, 2% National Insurance, 9% undergraduate loan) -- and 57% for those still repaying both loan types on income above both thresholds.