UK Student Loan Repayment Calculator
Find out exactly how much you will repay each month, whether you will clear your loan or have it written off, and how your salary growth affects the total cost.
Student Loan Repayment Calculator
Enter your details below to see your projected repayments and outcome.
For students who started on or after 1 September 2012 in England and Wales - repay 9% above threshold, written off after 30 years
UK average earnings growth is around 2–3% per year. Use 0% for a pessimistic scenario.
How Student Loan Repayments Work
Student loan repayments in the UK function more like a graduate tax than a conventional loan. Here is what you need to know.
Income-contingent repayments
You repay a fixed percentage of your income above your plan's threshold — never more, never less. If your salary falls below the threshold, payments stop completely. There are no missed-payment penalties.
Interest accrues on your balance
While you are repaying, interest is added to your balance each year. For Plan 2, this can be up to RPI + 3% — meaning your balance can grow faster than you repay it at lower salaries. The interest rate shown in our calculator is a realistic estimate based on recent rates.
Write-off after a set period
Any remaining balance is cancelled after the write-off period — 25 years (Plan 1), 30 years (Plan 2 and Postgraduate), or 40 years (Plan 5). The cancelled amount is not taxable. This built-in write-off is what makes these loans fundamentally different from commercial debt.
Will You Ever Pay Off Your Student Loan?
For Plan 2 graduates — those who started university in England or Wales from September 2012 — the honest answer is: probably not, and that is fine.
Research by the Institute for Fiscal Studies suggests fewer than 25% of Plan 2 borrowers will repay their loan in full before the 30-year write-off. A typical graduate leaving with £50,000 of debt faces an interest rate of around 7–8% in recent years, meaning their balance can grow significantly in the early years of their career while their salary builds up.
This means that for most graduates, the student loan functions effectively as a 9% income tax surcharge on earnings above £29,385, paid for a maximum of 30 years. The headline debt figure is largely irrelevant — what matters is your monthly repayment and how many years you pay.
Our calculator shows clearly whether your specific combination of loan balance, salary, and salary growth puts you in the "likely to repay" or "likely written off" camp. For most, the latter is the realistic outcome — and understanding this changes how you should think about your finances.
of Plan 2 graduates are projected to have their loan written off before fully repaying, according to IFS research.
Typical loan balance for an English student graduating after 3 years, including maintenance loans and tuition fee loans.
Estimated interest rate used for Plan 2 projections — based on recent RPI + 3% cap applied to higher earners.
Key insight: If you are a Plan 2 borrower unlikely to repay in full, making voluntary overpayments is rarely rational — you are paying extra toward a debt that will be cancelled regardless. Understanding your likely outcome helps you make better financial decisions.
Student Loan Plan Comparison
The UK has four main student loan plans, each with different thresholds, interest rates, and write-off periods.
| Plan | Threshold | Rate | Interest (est.) | Write-off |
|---|---|---|---|---|
| Plan 1 For students who started before 1 September 2012 (England/Wales) or NI students - repay 9% above threshold, written off after 25 years | £24,990/yr | 9% above threshold | 4.5% | 25 years |
| Plan 2 For students who started on or after 1 September 2012 in England and Wales - repay 9% above threshold, written off after 30 years | £29,385/yr | 9% above threshold | 7.3% | 30 years |
| Plan 4 (Scotland) For Scottish students who started from September 2021 - higher threshold of £31,395/yr, 9% above threshold, written off after 30 years | £31,395/yr | 9% above threshold | 4.5% | 30 years |
| Plan 5 For students starting courses from August 2023 onwards in England - repay 9% above threshold, written off after 40 years | £25,000/yr | 9% above threshold | 3.1% | 40 years |
| Postgraduate Loan For postgraduate master's and doctoral loans in England and Wales - repay 6% above threshold, written off after 30 years | £21,000/yr | 6% above threshold | 7.3% | 30 years |
Interest rates shown are fixed estimates used for projection purposes. Actual rates are variable and set annually.
Plan 2 Calculator
For English and Welsh students who started university on or after September 2012.
Plan 5 Calculator
For students starting courses from August 2023 in England. Lower threshold, lower interest, 40-year write-off.
Postgraduate Loan Calculator
For master's and doctoral students in England and Wales. Repaid at 6% above £21,000.
Plan 1 — included in main calculator
For students who started before September 2012 in England/Wales. Select "Plan 1" in the main calculator above.
Frequently Asked Questions
How does UK student loan repayment work?
You only repay when your income exceeds your plan's threshold. Repayments are deducted automatically through the PAYE system — exactly like tax. You pay a percentage of your income above the threshold, not a fixed monthly amount. If your salary drops below the threshold, repayments stop automatically.
Will my Plan 2 loan ever be paid off?
For most Plan 2 borrowers, the honest answer is no — and that is by design. Research by the Institute for Fiscal Studies (IFS) suggests fewer than 25% of Plan 2 graduates will fully repay before the 30-year write-off. The combination of a high starting balance (often £40,000–£60,000), an interest rate of up to RPI + 3% (around 7–8% in recent years), and a relatively moderate threshold means many borrowers repay for 30 years and still have a balance remaining. Use our calculator to see your specific projection.
What is the difference between Plan 2 and Plan 5?
Both apply 9% repayments above threshold. The key differences are: Plan 5 has a lower threshold (£25,000 vs £29,385 for Plan 2), a much longer write-off period (40 years vs 30), and a lower interest rate (RPI only, versus RPI + up to 3% for Plan 2). This means Plan 5 borrowers pay more each month (due to the lower threshold), for longer, but accrue less interest. Most Plan 5 graduates will ultimately repay more in total than Plan 2 graduates.
Do I have to declare my student loan on my tax return?
If you are employed, repayments are taken automatically by your employer through PAYE and you do not need to do anything. If you are self-employed, you must report your student loan repayments on your Self Assessment tax return. HMRC calculates what you owe based on your taxable profit above the threshold.
What happens to my student loan when it is written off?
When your loan reaches the write-off date (25 years for Plan 1, 30 years for Plan 2 and Postgraduate, 40 years for Plan 5), the remaining balance is cancelled by the Student Loans Company. You do not owe any more money, and importantly, the written-off amount is not treated as taxable income in the UK. Your credit file is not affected by the write-off.
Does my student loan affect my mortgage application?
Yes, but not because it appears on your credit file — it does not. Student loan repayments reduce your net take-home pay, which lenders use to assess affordability. Most mortgage calculators already account for student loan deductions in their affordability models. The impact is similar to any other regular committed expenditure. Your loan balance does not directly reduce the amount you can borrow, but your lower disposable income may.
Can I make voluntary overpayments on my student loan?
Yes. You can make voluntary overpayments to the Student Loans Company at any time, either as a lump sum or by increasing your regular payments. However, for most Plan 2 borrowers who are unlikely to repay in full, overpayments are not financially rational — you are paying extra money toward a debt that will be written off anyway. This calculator can help you assess whether you are likely to be a full-repayer (in which case overpayments save interest) or a partial-repayer (in which case the regular repayments are effectively a graduate tax).