Calculate monthly student loan repayments for Plans 1, 2, 4 and 5.
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Updated for the 2025/26 UK tax year.
About the Student Loan Calculator
UK student loans are repaid through the tax system as a fixed percentage of income above a plan-specific threshold — they do not work like commercial debt. For 2025/26: Plan 1 (started uni before September 2012 in England/Wales, or any year in NI) repays 9% above £26,065. Plan 2 (England/Wales, September 2012 to July 2023) repays 9% above £28,470. Plan 4 (Scottish loans, any year) repays 9% above £32,745. Plan 5 (England starters from August 2023) repays 9% above £25,000 and has a 40-year write-off versus 25-30 years for the older plans. Postgraduate Loans (PGL) repay 6% above £21,000 in addition to any undergraduate plan.
This calculator shows your monthly repayment, total expected repayments over the loan lifetime, interest accrual, and projected balance trajectory until the write-off date. It handles concurrent undergrad + postgrad plans (you repay both at the same time, which can take total payroll deduction to 15% on income above the higher threshold). For most graduates, the loan functions effectively as an income-contingent graduate tax — you only repay when earning enough, and any balance still outstanding at the write-off date is cancelled without penalty.
Interest rates differ by plan. Plan 2 and PGL interest is RPI + up to 3% (graduated by earnings, currently capped at the prevailing market rate cap). Plan 1 and Plan 4 use the lower of RPI or BoE base rate + 1%. Plan 5 charges RPI only — the cheapest interest of any current plan, which means Plan 5 borrowers may actually repay in full before the 40-year write-off, unlike most Plan 2 borrowers.
Should you overpay? For most graduates, no. If your projected lifetime repayments are less than the loan balance plus interest, every overpayment is wasted money — your loan would have been written off anyway. The calculator helps you see this clearly. Only consider overpayments if you are a high earner certain to clear the balance before the cutoff. Student loans do not appear on your credit file, but lenders do consider the deduction when calculating mortgage affordability. The tool applies to UK loans only — you must update the Student Loans Company annually if you live abroad.
How to use this calculator
1
Pick your plan
Plan 1, 2, 4 (Scotland), 5 (post-Aug 2023 starters) or Postgrad. If unsure, log into student-finance.service.gov.uk — your plan is shown on the account dashboard.
2
Enter your annual salary
Type your gross annual salary or self-employment profit. Pension salary sacrifice reduces the earnings used for student loan deduction — a significant saving for some graduates.
3
Add a postgraduate loan if applicable
If you have both undergrad and postgrad loans you repay 9% above the undergrad threshold AND 6% above £21,000 for postgrad — so total deduction can be 15% on each pound of higher income.
4
Review the projection
See monthly deduction, lifetime repayment estimate and whether you are likely to clear the balance before write-off (25, 30 or 40 years depending on plan).
5
Decide whether to overpay
If you are projected to clear the balance early anyway, overpaying saves you some interest. If the balance will be written off, do not overpay — that money is better used elsewhere.
Common mistakes to avoid
!Forgetting that the Personal Allowance tapers at £1 per £2 above £100,000 income — creates 60% effective marginal rate up to £125,140 (67.5% in Scotland).
!Not adding student loan repayment — adds 9% (Plans 1/2/4/5) or 6% (Postgrad) above the plan-specific threshold on top of tax + NI.
!Assuming Scottish bands match rUK — Scotland has 6 bands (19/20/21/42/45/48%) with the higher rate kicking in at £43,663 (not £50,270).
!Using gross figures for pension contributions when sacrificed via payroll — salary sacrifice reduces taxable income at source, simplifying the maths.
Plan 1: repay 9% above £26,065/year. Plan 2: repay 9% above £28,470/year. Plan 4 (Scotland): 9% above £32,745/year. Plan 5: 9% above £25,000/year.
When are student loans written off?
Plan 1 loans are written off after 25 years. Plan 2 loans are written off after 30 years. Plan 5 loans are written off after 40 years.
How is interest calculated on my student loan?
Plan 2 and PGL use RPI plus up to 3% (graduated by income, currently capped at the prevailing market rate). Plan 1 and Plan 4 use the lower of RPI or BoE base rate plus 1%. Plan 5 charges RPI only — the cheapest of any current plan. Interest accrues daily on the outstanding balance from the date funds are paid to the university.
Should I overpay my student loan?
For most graduates, no. If your projected lifetime repayments are less than the balance plus interest, your loan will be written off — every extra pound paid is wasted. Only consider overpayments if you are a high earner certain to clear the balance before the 25/30/40-year cutoff. Lower or middle earners are almost always better off using surplus cash for pension, ISA or mortgage.
Does my student loan appear on my credit file?
No. UK Government student loans (Plan 1, 2, 4, 5 and Postgraduate) do not appear on your credit report and do not directly affect credit scores. However, lenders do ask about student loan repayments when assessing mortgage affordability, because the deduction reduces your net income for stress testing. The deduction is taken at source through PAYE or Self Assessment.
What happens to my loan if I move abroad?
You remain liable. You must notify the Student Loans Company of your overseas address and income, and pay direct to the SLC each year based on country-specific thresholds. Failure to report or pay can result in fixed monthly payments at a much higher rate, plus penalties and possible collection action. The SLC uses comparable cost-of-living adjustments to UK thresholds.
Which student loan plan am I on?
Plan 1: English/Welsh starters before September 2012 (or any year in Northern Ireland). Plan 2: English/Welsh starters September 2012 to July 2023. Plan 4: any Scottish-funded loan. Plan 5: English starters from August 2023. Postgraduate Loan is separate and runs alongside any undergrad plan. Check your dashboard at student-finance.service.gov.uk if unsure.
Do bonuses count toward student loan repayments?
Yes. Repayments are 9% (Plan 1, 2, 4, 5) or 6% (PGL) of income above the relevant threshold, including bonuses, overtime and commission paid through PAYE. A one-off large bonus that pushes a single pay period above the weekly/monthly threshold will trigger that month's repayment, even if your annual salary alone would not. This is calculated per pay period, not annually.
What if I have both a Plan 2 and a Postgraduate loan?
You repay both simultaneously. Plan 2 takes 9% above £28,470 and the Postgraduate Loan takes 6% above £21,000. So earning £50,000 you would pay 9% × (50,000 − 28,470) = £1,938 plus 6% × (50,000 − 21,000) = £1,740 = £3,678 per year combined. Both deductions appear separately on your payslip.
Can I clear my student loan early in one lump sum?
Yes. You can pay any amount at any time directly to the Student Loans Company online, by phone or bank transfer. There are no early-repayment penalties. However, before doing so check whether your projected lifetime repayments exceed your current balance — if they do not, you are better off keeping the cash for pension, ISA or mortgage rather than clearing what would have been written off.