See your monthly repayments, total repaid and write-off projection — for all UK loan plans.
Where these figures come from. See the repayment thresholds and rates for each student loan plan, each with its official source and the date UKCalc last checked it, on the 2026/27 rates and thresholds UKCalc uses.
| Loan plan | — |
| Repayment threshold | — |
| Approximate interest rate | — |
| Monthly repayment (current salary) | — |
| Annual repayment (current salary) | — |
| Loan balance | — |
| Estimated years to clear | — |
| Year | Salary | Monthly | Interest | End Balance |
|---|
UK student loans are not like commercial loans. Repayments are calculated as a percentage of your income above a set threshold — not based on your total loan balance. If you earn below the threshold in any given year, you make no repayment that year regardless of the size of your debt.
| Plan | Repayment threshold | Rate | Interest rate | Write-off | Who it applies to |
|---|---|---|---|---|---|
| Plan 1 | £26,900/yr | 9% | 4.1% | 25 years | Started before Sep 2012 |
| Plan 2 | £29,385/yr | 9% | 4.1%–6% (income-based) | 30 years | Sep 2012 – Jul 2023 starters |
| Plan 4 | £33,795/yr | 9% | 4.1% | 30 years | Scottish-domiciled (SAAS) |
| Plan 5 | £25,000/yr | 9% | 4.1% | 40 years | Started from Aug 2023 (England) |
| Postgrad | £21,000/yr | 6% | 6% | 30 years | Master's or Doctoral loan |
Thresholds are updated each April and interest rates each September. Interest rates as published by GOV.UK: what you pay, checked 7 September 2026. Thresholds apply to earnings in England, Wales and Northern Ireland — overseas thresholds differ.
Your monthly repayment is calculated as follows:
Monthly repayment = (Annual salary − Threshold) ÷ 12 × repayment rate
For example: a Plan 2 borrower earning £35,000 repays (£35,000 − £29,385) ÷ 12 × 9% = £42.11/month. Repayments are deducted automatically through PAYE by your employer — you do not need to make manual payments while employed in the UK.
Plan 1 and Plan 4: Interest is set at the lower of RPI or Bank Rate plus 1%. GOV.UK currently publishes the resulting rate as 4.1%.
Plan 2: Interest is income-dependent. It is set as RPI plus up to 3%, but a cap currently holds the top rate below that. GOV.UK publishes 4.1% on income of £29,385 or less, 4.1% plus up to 1.9% on a sliding scale from £29,386 to £52,884, and 6% from £52,885 upwards.
Plan 5: Interest does not vary with income. GOV.UK publishes it at 4.1% — the same rate as Plan 1 and Plan 4, and below the Plan 2 rate for higher earners.
Postgraduate Loan: Interest is charged from the day the loan is paid out, while studying and throughout repayment. GOV.UK publishes the rate as 6%.
Most Plan 2 and Plan 5 borrowers will never repay their loan in full. At typical graduate salaries and salary growth rates, the outstanding balance grows (or shrinks slowly) for many years before eventually being written off. This means Plan 2 and Plan 5 loans function economically more like a graduate income surcharge than a traditional loan — you pay a fixed percentage of earnings above the threshold for a set number of years, after which the debt disappears.
This has a counterintuitive implication: for most Plan 2 and Plan 5 borrowers, making voluntary overpayments is not financially beneficial. If your loan is destined to be written off, overpayments reduce the balance that would have been cancelled — you pay more in total than you would have otherwise.
Overpaying can be rational if you are a higher earner who is mathematically certain of clearing the full loan within the write-off period. For Plan 1 borrowers (25-year write-off, lower interest), overpaying is more commonly worthwhile than for Plan 2 or Plan 5. Always run the numbers before making voluntary repayments — the decision depends on your salary trajectory, loan size, interest rate and time remaining.
Three realistic UK scenarios, produced by the calculator above using 2026/27 thresholds and the interest rates GOV.UK publishes.
Jake's example illustrates the "graduate tax" reality of Plan 2: his salary only crosses the threshold modestly in early years, interest accrues faster than repayments, and the remaining balance is written off after 30 years. He repays £23,114 in total — far less than the £47,000 borrowed plus interest. Not financial advice.
The repayment thresholds and rates this calculator applies, with sources. Last checked on 2 September 2026.
Assumptions. Repayments are calculated on income above the threshold, not on the balance outstanding, so the amount you owe does not change what you repay each month. Deductions are made through PAYE against each pay period rather than annually, so a bonus month can trigger a repayment even if annual income is below the threshold. Interest rates are the figures GOV.UK publishes, checked 7 September 2026. They are set annually, normally each September, and on Plan 2 vary with income. Projections assume the salary growth you enter and current thresholds throughout, which will not hold in practice.