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HECS-HELP repayment calculator

Work out your HECS-HELP repayment — a percentage of income that rises with your earnings — and roughly how long until it's cleared.

By Mitch Duncan Last reviewed Methodology

Your details

HECS-HELP repayments are a percentage of your whole income once you cross the threshold. The balance is indexed to inflation, not charged interest. Thresholds are set yearly — check the ATO for current figures.

Repayment / year
$2,625.00
Repayment / month
$218.75
Effective rate of income
3.5%
Years to clear at this income
11.4 years
Repayment basis
Indexed, no interest

"Years to clear" ignores future pay rises and annual indexation. It's a simple balance ÷ annual-repayment estimate, not a forecast.

How HECS-HELP repayment works

Australian student debt (HECS-HELP and other HELP loans) is income-contingent and collected through the tax system. You don't choose a monthly payment — once your income passes the threshold (around A$54,000, indexed annually), you repay a percentage of your whole income that rises in steps as you earn more, from about 1% up to 10% at the top band.

No interest, but indexation

HELP debts don't charge interest. Instead, the balance is indexed to inflation each year (historically CPI), so it keeps pace with prices rather than growing with an interest rate. In low-inflation years the real cost is minimal; in high-inflation years indexation can be significant.

How repayments are worked out

The repayment rate applies to your entire repayment income, not just the part above the threshold — so crossing into a higher band lifts the rate on the whole amount. Example: earning A$75,000 might fall in a band around 3.5%, giving roughly A$2,625 a year withheld through PAYG. The deduction stops automatically if your income drops below the threshold.

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Frequently asked questions

How are student loan repayments calculated?
It depends on the country. In the US and Canada you repay an amortizing loan — a fixed monthly payment set by your balance, interest rate, and term. In the UK and Australia repayments are income-contingent: you pay a percentage of income above a threshold, so your salary, not your balance, drives the monthly amount.
What is income-contingent repayment?
It means your repayment is a share of your earnings rather than a fixed amount tied to the balance. UK borrowers repay 9% of income above a threshold; Australian HELP borrowers repay a rising percentage of total income once they cross the threshold. Repayments pause automatically if income falls, and remaining balances are eventually written off.
Should I pay off my student loan early?
For amortizing loans (US/Canada), overpaying reduces total interest and clears the debt sooner. For income-contingent loans (UK/Australia) that are written off after 30–40 years, many borrowers never repay the full balance, so voluntary payments only help if you'd otherwise clear it before write-off. The right answer depends on your system and income.
Does the UK student loan charge interest?
Yes — UK loans accrue interest (linked to RPI), which adds to the balance. But because repayment is 9% of income above the threshold and the balance is written off after 30 years (Plan 2) or 40 years (Plan 5), the interest rate often doesn't change what most borrowers actually repay over their lifetime.
How does Australian HECS-HELP work?
HECS-HELP is income-contingent and interest-free, but the balance is indexed to inflation each year. Once your income passes the threshold (around A$54,000, indexed annually), the ATO withholds a percentage of your whole income that rises in steps with earnings — from roughly 1% up to 10% at the highest band.
Why does my balance barely change my UK or Australian repayment?
Because those repayments are based on income, not the amount owed. Someone earning the same salary repays the same amount whether they owe 20,000 or 60,000 — the balance only affects how long it takes to clear (or whether it's written off first). That's why these systems feel more like a graduate tax than a normal loan.

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