How to Use the UK Student Loan Repayment Calculator
The UK Student Loan Repayment Calculator covers all five repayment plans — Plan 1, Plan 2, Plan 4 (Scotland), Plan 5 (new from 2023), and the Postgraduate Loan — showing your monthly repayment, total amount repaid, and projected write-off date based on the threshold and interest rate for your specific plan.
Enter your salary and select your plan type. The calculator shows how much is deducted from each payslip, how that changes as your salary grows, and how long until your loan is written off. This is crucial because most Plan 2 borrowers will never fully repay — they'll have the remaining balance written off after 40 years.
A critical nuance is that student loan repayments work like a graduate tax, not a conventional debt. You only pay back 9% (or 6% for postgrad) of earnings above a threshold — not a fixed monthly amount. If your income drops, repayments stop automatically. This makes the loan fundamentally different from commercial borrowing.
📊 Worked Example
Plan 2 loan £50,000, salary £35,000:
- Repayment threshold: £27,295/year
- Monthly repayment: £57 (9% of £7,705 ÷ 12)
- Annual repayment: £693
- Loan written off after: 40 years (2063)
Common Use Cases
- ✅ Calculating your monthly student loan deduction from your payslip
- ✅ Understanding whether you will ever fully repay your loan
- ✅ Comparing Plan 2 vs Plan 5 repayment terms for recent graduates
- ✅ Deciding whether to make voluntary overpayments on your student loan
- ✅ Planning how student loan repayments affect your take-home pay at different salary levels
- ✅ Understanding the write-off timeline for Plan 1, 2, 4, and 5 loans
Frequently Asked Questions
Which student loan plan am I on?
Plan 1: started before 1 September 2012 in England/Wales, or any time in Northern Ireland. Plan 2: started on or after 1 September 2012 in England/Wales. Plan 4: Scottish students from 2006 onwards. Plan 5: new students from August 2023 in England. Postgrad Loan: postgraduate master's or doctoral loans.
When do student loan repayments start?
Repayments start in the April after you graduate or leave your course, but only when your income exceeds the relevant threshold. For Plan 2 (2025/26): £27,295/year (£2,274/month). Below this, no repayments are taken regardless of how large the loan is.
Should I overpay my student loan?
Probably not for most Plan 2 borrowers. If you're unlikely to repay the full balance in 40 years (the typical outcome), voluntary overpayments simply increase the amount written off — you're paying money you'd never have had to pay. A financial adviser can model your specific situation.
How is student loan interest calculated?
Plan 2 interest: RPI + 3% while studying, then between RPI (for earnings under threshold) and RPI+3% (for earnings above £49,130), on a sliding scale. Plan 1: Bank of England base rate + 1%, capped at RPI. Interest accrues regardless of whether you're making repayments.
Does my student loan affect my credit score?
No. Student loans do not appear on your credit file and are not counted as debt for mortgage affordability purposes by most UK lenders. They are treated as a tax-like deduction from earnings, not a conventional debt obligation.