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UK student loan repayment calculator

See your UK student loan repayments — 9% of income above the Plan 2 or Plan 5 threshold — plus when the balance is written off.

By Mitch Duncan Last reviewed Methodology

Your details

You repay 9% of income above £25,000. Anything still owed after 40 years is written off.

Repayment / year
£900.00
Repayment / month
£75.00
Effective rate of income
2.6%
Years to clear at this income
50.0 years
Written off after
40 years

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

How UK student loan repayment works

UK student loans are income-contingent, collected through the tax system. You repay 9% of everything you earn above a threshold — and nothing on income below it. The balance and interest rate barely affect your monthly payment; your salary does. Whatever is still owed at the end of the term is written off.

Plan 2 vs. Plan 5

Example: on Plan 5 earning £35,000, you repay 9% of (£35,000 − £25,000) = £900 a year, about £75 a month — regardless of whether you owe £20,000 or £60,000.

Should you overpay?

Because the loan is written off after 30 or 40 years, many borrowers never repay it in full. Voluntary overpayments only help if you'd otherwise clear the whole balance before write-off — for most, that money is better used elsewhere. It behaves more like a graduate tax than a conventional debt.

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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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