Calculate your monthly student loan repayment based on your salary and loan plan.
This calculator provides estimates for guidance only. It does not constitute financial advice. Student loan thresholds and rates may change. Always verify with the Student Loans Company or HMRC.
Student loan repayments are a significant monthly deduction for millions of UK graduates. Unlike a traditional loan, UK student loan repayments are income-contingent -- you only repay when your earnings exceed a specific threshold, and the amount you repay is a fixed percentage of income above that threshold. If your income drops below the threshold, repayments stop automatically. The UK operates several student loan repayment plans, each with different thresholds and terms. Plan 1 covers loans taken out before September 2012 in England and Wales, and all loans from Student Awards Agency for Scotland (SAAS). Plan 2 applies to loans taken out from September 2012 in England and Wales. Plan 4 covers Scottish student loans from September 2012 onwards. Plan 5 is the newest plan for students starting from September 2023. There is also a separate Postgraduate Loan plan for Master's and Doctoral study. Understanding which plan you are on and how repayments are calculated helps you plan your monthly budget accurately. Many people are surprised to learn how much their student loan repayment adds to their total monthly deductions, especially when combined with income tax and National Insurance.
To calculate your student loan repayment: 1. Enter your annual gross salary. This is your total pre-tax income from employment. If you have multiple jobs, your main employer typically collects the repayment through PAYE, but your total income across all sources determines your liability. 2. Select your loan plan. Check your student loan statement or Student Loans Company (SLC) account to find which plan you are on. If you are unsure, the SLC website has a plan checker tool. If you have both an undergraduate and postgraduate loan, they are repaid simultaneously at separate rates. 3. View your results. The calculator shows your monthly and annual repayment amounts, the repayment threshold for your plan, and the repayment rate. If your salary is below the threshold, the repayment will be zero. 4. The bar chart illustrates the relationship between your salary, the threshold, and the repayable amount, making it easy to see how much of your income is subject to repayment.
Student loan repayments are calculated using a simple formula: repayment = (gross income - threshold) x repayment rate. For Plan 1, the repayment threshold is GBP 24,990 per year (2026-27) and the rate is 9%. So if you earn GBP 35,000, your annual repayment is (GBP 35,000 - GBP 24,990) x 0.09 = GBP 900.90, or GBP 75.08 per month. Plan 2 has a higher threshold of GBP 27,295 per year with the same 9% rate. Plan 4 (Scottish) uses a threshold of GBP 31,395. Plan 5 has a threshold of GBP 25,000. Postgraduate loans use a lower rate of 6% with their own threshold of GBP 21,000. Importantly, if you have both an undergraduate plan and a postgraduate loan, you make two separate repayments simultaneously -- 9% above your undergraduate threshold plus 6% above the postgraduate threshold. This can result in a combined effective rate of 15% on income above both thresholds. All repayments are collected through the PAYE system by your employer. Your employer applies the threshold and rate each pay period (weekly or monthly). At year end, any overpayments are reconciled. Student loans are written off after a set period: Plan 1 loans are written off at age 65 or after 25 years (depending on when you took the loan). Plan 2 loans are written off after 30 years. Plan 5 loans are written off after 40 years. This means many graduates will never fully repay their loan.
Repayment thresholds are reviewed annually and may change. The figures shown use 2026-27 rates. Interest on student loans varies by plan and income -- Plan 2 charges RPI plus up to 3%, while Plan 5 charges RPI only. Interest is not factored into this repayment calculator; it shows how much you repay from salary each month, not how quickly the balance reduces. For a full repayment timeline, refer to the Student Loans Company.