Student Loan Repayment Calculator UK
See your monthly repayments, how long to pay off, and if your loan gets written off.
Monthly Repayment
£58
/month (£693/year)
40
Years to repay
£3,375
Annual interest
£27,738
Total repaid
Yes
Written off?
Plan 2 (post-2012) Details
How UK Student Loan Repayments Work
You repay 9% of everything you earn above £27,295/year. Below that threshold, you pay nothing. Repayments are deducted automatically through PAYE — you never have to make a manual payment.
The loan is written off after 40 years regardless of the remaining balance. For many graduates, especially on Plan 2, the loan functions more like a graduate tax than a traditional debt.
About the Student Loan Repayment Calculator
Student loan repayments in the UK are collected through the PAYE system once your income exceeds a threshold that depends on your plan type. Unlike commercial debt, repayments are income-contingent — you only pay a percentage of earnings above the threshold, and the loan is written off after a set period regardless of the balance remaining. This makes student loans function more like a graduate tax than a traditional loan.
Plan 1 (started before September 2012) has a threshold of £24,990 with a 9% repayment rate and is written off at age 65 or after 25 years. Plan 2 (started September 2012 onwards) has a threshold of £27,295, also at 9%, and is written off after 30 years. Plan 5 (from September 2023) has the same 9% rate but a lower £25,000 threshold with 40-year write-off. Postgraduate loans (Plan 3) have a £21,000 threshold at 6%. If you have both an undergraduate and postgraduate loan, you pay both simultaneously — up to 15% of income above thresholds.
How to Use This Calculator
- Select your student loan plan type (Plan 1, 2, 4, 5, or Postgraduate)
- Enter your current gross annual salary
- Input your outstanding loan balance
- View your monthly and annual repayment amounts
- See the projected repayment timeline and whether you will clear the loan before write-off
Key Facts
Most Plan 2 borrowers will never repay their loan in full — projections suggest around 70% will have a balance written off. Voluntary overpayments only make sense if you will repay the full balance before write-off anyway. Plan 2 loans accrue interest at RPI plus up to 3% while studying and RPI plus 0-3% thereafter (income-linked). If you move abroad, you must inform the Student Loans Company and repay based on equivalent country thresholds.