Student Loan Repayment Calculator
Tool
Find out exactly what you owe, when you’ll clear it, and whether it writes off.
Your Loan Plan
Select your plan
£27,295/yr
9% above threshold
30 years
Your Details
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Your Results
Year-by-Year Breakdown
| Year | Salary | Repayment | Interest Added | Balance (End of Year) |
|---|
What to Know
It works like a graduate tax. You only repay when earning above the threshold. Drop below it – whether through part-time work, career breaks or redundancy – and repayments stop automatically. There’s no penalty and it won’t affect your credit score.
Overpaying can be a costly mistake. If your loan is likely to be written off before you clear it, voluntary overpayments could cost you thousands more than simply letting the write-off happen. Always model the numbers here before paying anything extra.
Postgrad loans stack separately. If you have both an undergraduate and a postgraduate loan, you repay both simultaneously from the same paycheck – 9% above your undergrad threshold plus 6% above £21,000. This calculator covers one loan at a time.
Salary growth is the biggest lever. Even a modest 3% annual raise significantly shortens your repayment window. Try adjusting the salary growth field to model a promotion, sector move, or career change – the difference can be dramatic.
Frequently Asked Questions
How do I know which plan I’m on?
Plan 1 – started before September 2012 in England/Wales, or any time in Northern Ireland. Plan 2 – started between 2012 and 2022 in England/Wales. Plan 4 – studied in Scotland. Plan 5 – started from August 2023 in England. Postgraduate – Masters or PhD loan taken from 2016 onwards. If you’re still unsure, log in to your Student Finance England (or equivalent) account – your plan type is shown on your repayment summary.
Why might my loan never fully repay?
If your salary stays near the threshold, your monthly repayments may not cover the interest being added each year – meaning the balance grows rather than shrinks. After the write-off period (25–40 years, depending on your plan), any remaining balance is cancelled by the Student Loans Company. This isn’t a failure – it’s how the system is designed, and it’s factored into the calculator projections.
Does the interest rate actually change?
Yes – UK student loan interest is tied to the Retail Price Index (RPI), which changes every September. Plan 2 and Plan 5 also apply a sliding margin based on your income: up to +3% for higher earners. The rate pre-filled in this calculator is an approximation based on current RPI. You can edit the field to match the exact rate on your latest annual student loan statement.
What happens when my loan is written off?
Once the write-off period ends (counted from April after you first became liable to repay – usually the April after you graduate), any remaining balance is automatically cancelled by the Student Loans Company. It is not taxable income, it does not appear on your credit report, and you receive no bill. You simply stop repaying.
Should I make voluntary overpayments?
Only if the calculator clearly shows your loan will be fully repaid before the write-off date – and voluntary overpayments would meaningfully reduce the interest you pay. For many Plan 2 borrowers with balances above £40,000, the loan writes off regardless, making overpayments a poor financial decision compared to investing or saving elsewhere. Model it here first.
How accurate are these projections?
This tool provides estimates based on the thresholds, rates and write-off periods you enter. Real repayments vary with annual RPI changes, threshold uplifts, salary fluctuations, and employment gaps. Use it for planning and comparison – and refer to your official Student Finance account for your exact balance and repayment schedule.
Looking for more tools to manage your graduate finances? Check out the Graduate Salary Calculator to see your take-home pay after tax, NI and student loan deductions – or the House Bill Splitter to divide household costs fairly between housemates.
