UK Student Loan Repayment Calculator
Calculate exactly how much you will repay on your UK student loan each month and in total. Covers Plan 1, Plan 2 (post-2012), and Plan 5 (post-2023) repayment rules.
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Student Loan Guide
How UK Student Loan Repayments Work?
UK student loans are income-contingent — you only repay when earning above a threshold, and repayments are a percentage of income above that threshold. Plan 2: repay 9% of income above £27,295 per year. Plan 5: repay 9% of income above £25,000 per year. Plan 1: 9% above £22,015. Postgraduate: 6% above £21,000. Example (Plan 2, £35,000 salary): repay 9% × (£35,000 − £27,295) = 9% × £7,705 = £693/year = £57.75/month. This is taken via PAYE automatically.
What should I know about Interest Rates and Write-Off?
Plan 2 interest: while studying — RPI + 3%. After graduation, interest tapers from RPI+3% (earning under £27,295) to RPI+3% (earning over £49,130). Plan 5 interest: capped at 7.3% for 2026/27. Write-off: Plan 2 loans are written off 30 years after the April following graduation. Plan 5: written off 40 years after graduation. Plan 1: at age 65. The key insight: many graduates, particularly in lower-paid professions, will never repay the full balance — the debt is written off after the term ends, making the student loan function more like a graduate tax on earnings above the threshold than a conventional debt that must always be repaid.
Should You Overpay?
For most Plan 2 borrowers, overpaying the student loan is rarely advisable. If the loan will be written off before clearance (common for teachers, nurses, social workers, those in the arts), paying extra is simply paying more than you would have paid — the write-off erases the remaining balance regardless. Only overpay if you are in a high-earning career trajectory that makes full repayment near-certain before write-off, AND your student loan interest rate exceeds what you could reasonably earn investing that same money elsewhere — for most graduates, neither condition holds, making overpayment rarely the optimal choice.
What should I know about The Marginal Rate Effect?
The 9% repayment on income above the threshold effectively increases your marginal tax rate on that income. For a basic rate (20%) Plan 2 borrower: marginal rate = 20% income tax + 10% National Insurance + 9% student loan = 39% on income between threshold and higher-rate threshold. For higher-rate taxpayers: 40% + 2% + 9% = 51% marginal rate. Understanding this helps with salary negotiation (£1,000 raise costs you £390–510) and decisions about additional pension contributions (which reduce taxab