Student Loan Repayment Calculator 2026/27
On Plan 2 with a £45,000 balance and £32,000 salary, you'll repay approximately £38/month (£455/year). The repayment threshold is £29,385: you pay 9% of earnings above this. Many Plan 2 and Plan 5 borrowers have loans written off after 30 to 40 years before fully repaying, making the loan behave more like a graduate tax.
Figures verified against Bank of England base rate on .
Written by James HartleyCIMA
Calculator
Check your Student Loans Company portal or loan statement if unsure.
Average annual increase including inflation and career progression.
Threshold: £29,385/yr · Rate: 9% of earnings above threshold · Write-off: 30 years
Monthly Repayment
£19.61
£235/year
Total Repaid
£37,497
Total Interest Accrued
£277,314
Written Off After 30 Years
£284,817 wiped
Repayment Threshold
£29,385/yr
Loan likely written off 💡
Based on these assumptions, approximately £284,817 would be written off after 30 years, meaning you would never owe it. Voluntary overpayments are generally not recommended in this scenario.
Based on your salary, you won't repay the full balance , £284,817 will be written off. Voluntary overpayments are unlikely to be worthwhile.
For most Plan 2/5 borrowers, the loan works like a graduate tax. If you won't clear it in full, voluntary overpayments are money lost. Check your SLC balance.
These insights are generated based on your inputs and general UK financial guidelines. They do not constitute personal financial advice. Always consult a CIMA-qualified accountant or FCA-regulated adviser before making financial decisions.
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How Student Loan Repayment Calculator 2026/27 Works
How UK student loan repayments are calculated
You repay 9% (or 6% for Postgraduate loans) of everything you earn above your repayment threshold. If you earn below the threshold, you pay nothing. Repayments are taken through PAYE automatically. There is no monthly direct debit to set up.
What changed for 2026/27
The 2026/27 tax year marks the first time Plan 5 student loan repayments are collected. Plan 5 applies to students who started their undergraduate course in England on or after 1 August 2023. The repayment threshold is £25,000, which is lower than both Plan 1 and Plan 2. Repayments are 9% of income above this threshold. Plan 5 loans are written off after 40 years.
Interest on student loans
Plan 1 and Plan 4 charge interest at RPI (currently ~2.5%). Plan 2 charges RPI + up to 3% depending on income (currently ~7.3%). Plan 5 charges RPI + 1.5%. Postgraduate loans charge RPI + 3%. The balance can grow significantly before repayments make a dent.
Write-off dates
Plan 1: written off 25 years after graduation. Plans 2, 4 & Postgraduate: 30 years. Plan 5: 40 years. The clock starts from the April after your graduation. Any remaining balance is wiped without affecting your credit rating.
Frequently Asked Questions
Plan 5 is a new repayment plan for students who started undergraduate or Advanced Learner Loan courses on or after 1 August 2023. April 2026 is the first month repayments will be collected. The threshold is £25,000 per year, with repayments at 9% of income above that amount.
Plan 1 is for courses started before September 2012 in England/Wales. Plan 2 is for courses between September 2012 and July 2023. Plan 4 is for Scottish students. Plan 5 is for courses starting August 2023 onwards. You can check your plan at your Student Loans Company online account.
Plan 1: £26,900. Plan 2: £29,385. Plan 4: £33,795. Plan 5: £25,000. Postgraduate: £21,000. These are reviewed annually each April.
The Plan 2 threshold rises to £29,385 in April 2026 but will then be frozen at this level until April 2030. This means future real-terms erosion as wages grow but the threshold stays flat.
Usually not on Plan 2 or Plan 5 if you're likely to have the loan written off (many borrowers do). You'd be paying off something you'd never owe. For Plan 1 with low balances or high earners who will definitely repay, overpayments can save interest.
Student loan repayments reduce your net pay, which lenders assess. However, it is not a debt on your credit file. Most lenders will count the monthly repayment as an outgoing when assessing affordability.
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Official Rates Used
This calculator uses official HMRC rates for 2026/27. View the current rates at GOV.UK:
Rates last verified:
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.