Student Loan Repayment Calculator (2026/27)
Select your plan and enter your salary to see exactly what you repay each month and year. Thresholds are the official 2026/27 figures from HMRC — repayments are 9% (6% for postgraduate loans) of income above your plan threshold. Which plan you are on can change the answer by hundreds of pounds a year on the same salary.
How it works
You repay a fixed percentage of income above your plan threshold — not of your whole salary. For 2026/27 the thresholds are: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000 (all at 9%) and Postgraduate Loan £21,000 (at 6%).
A worked example on Plan 5: at a £30,000 salary, only the £5,000 above the £25,000 threshold is counted, so the annual repayment is 9% × £5,000 = £450, or £37.50 a month. The same salary on Plan 1 repays 9% of £3,100 = £279 a year; on Plan 2, 9% of £615 = about £55 a year; and on Plan 4 — with its £33,795 threshold — nothing at all.
Your plan depends on when and where you studied: Plan 1 (pre-2012 England/Wales, and Northern Ireland), Plan 2 (2012-2023 England/Wales), Plan 4 (Scotland), Plan 5 (England, courses starting from August 2023). Postgraduate loans are separate and can be repaid at the same time as an undergraduate plan.
The most common misunderstanding is treating the 9% as a tax on your whole salary. It applies only to the slice above the threshold — so a £1,000 pay rise costs at most £90 a year in extra repayments, and dropping below the threshold stops repayments entirely and automatically.
If you hold both an undergraduate and a postgraduate loan, the two calculations run side by side: 9% above your plan threshold plus 6% above £21,000. On £40,000 with Plan 2 and a postgraduate loan that is about £955 + £1,140 = £2,095 a year, deducted together through payroll.
Repayments are taken automatically through PAYE alongside tax and National Insurance. If you earn below the threshold you pay nothing — and any remaining balance is written off at the end of your loan term (25-40 years depending on plan).
The result here is your repayment only — it is not included in a standard take-home pay figure, so subtract it from the net salary our take-home calculator shows. Note also that many borrowers never repay in full before write-off, which is why the monthly repayment, not the outstanding balance, is usually the number that matters for budgeting.
FAQ
How much do I repay on a Plan 2 loan in 2026/27?
You repay 9% of income above £29,385. On a £40,000 salary that is 9% of £10,615 — about £955 a year or £80 a month. Below £29,385 you repay nothing, and repayments pause automatically if your income drops.
Can I pay both an undergraduate and postgraduate loan at once?
Yes. The two are calculated separately and deducted together: 9% above your undergraduate plan threshold plus 6% above £21,000 for the postgraduate loan. A £40,000 earner on Plan 2 + PG pays roughly £955 + £1,140 = £2,095 a year combined.
Does the student loan affect my take-home pay calculation?
Yes — it is deducted through payroll after tax and National Insurance. Our take-home pay calculator shows salary after tax and NI only, so subtract your loan repayment from that figure for your true net pay.
When is my student loan written off?
It depends on the plan: Plan 1 is written off 25 years after the April you were first due to repay, Plan 2 after 30 years, Plan 4 after 30 years, and Plan 5 after 40 years. Postgraduate loans are written off after 30 years. Many borrowers never repay in full before write-off.
Which student loan plan am I on?
It follows when and where you studied: Plan 1 for courses starting before 2012 in England or Wales (and Northern Ireland), Plan 2 for 2012-2023 in England or Wales, Plan 4 for Scotland, and Plan 5 for English courses starting from August 2023. Postgraduate loans are a separate product with their own £21,000 threshold and 6% rate.
What happens if my salary drops below the threshold?
Repayments stop automatically — they are calculated through PAYE each time you are paid, so there is nothing to apply for. Earn £29,000 on Plan 2 (threshold £29,385) and nothing is deducted; cross back above the threshold and the 9% on the excess resumes just as automatically.
How much of a pay rise goes on my student loan?
At most 9p of each extra pound (6p for a postgraduate loan). A £1,000 rise costs up to £90 a year in additional repayments — £150 if you are repaying an undergraduate and postgraduate loan together (9% + 6%) — because the percentages only apply to income above the thresholds. A rise never leaves you worse off overall.
Why does the same salary give different repayments on different plans?
Because the thresholds differ while the rate stays at 9%. At £30,000, Plan 5 (threshold £25,000) repays £450 a year, Plan 1 (£26,900) repays £279, Plan 2 (£29,385) about £55, and Plan 4 (£33,795) nothing. The lower your plan's threshold, the more of your salary is exposed to the 9%.