UK Student Loan Repayment Calculator
UK Student Loan Repayment Calculator: Know What You'll Pay
Understanding your student loan repayments is crucial for financial planning after university. This comprehensive guide explains how UK student loan repayments work and provides an interactive calculator to estimate your payments.
How UK Student Loan Repayments Work
Repayment Thresholds
You only start repaying your student loan when your income exceeds a certain threshold:
- Plan 2: £27,295 per year (£2,274 per month)
- Plan 5: £25,000 per year (£2,083 per month)
These thresholds are updated annually in April.
Repayment Rates
You pay 9% of your income above the threshold. For example:
Example (Plan 2): Earning £30,000
£30,000 - £27,295 = £2,705 above threshold
9% of £2,705 = £243.45 per year (£20.29 per month)
Interest Rates
Interest accrues differently depending on your plan and income:
| Plan | Income Range | Interest Rate (2023/24) |
|---|---|---|
| Plan 2 | ≤ £27,295 | 6.25% (RPI) |
| £27,296-£49,130 | 6.25% to 7.3% | |
| > £49,130 | 7.3% (RPI + 3%) | |
| Plan 5 | All incomes | 6.25% (RPI) |
How to Use the Calculator
Select Your Loan Plan
Choose between Plan 2 (for students who started between 2012-2022) or Plan 5 (2023 onwards).
Enter Your Salary
Input your gross annual salary before tax.
Enter Loan Balance
Add your current student loan balance (find this on your Student Loans Company account).
View Results
See your estimated annual, monthly and weekly repayments along with current interest rate.
Important Considerations
Loan Forgiveness
Any remaining balance is wiped after 30 years (Plan 2) or 40 years (Plan 5) from the April after graduation.
Salary Sacrifice
Pension contributions and salary sacrifice schemes reduce your repayments as they lower your taxable income.
Self-Employed
Repayments are calculated through your Self Assessment tax return if you're self-employed.
Frequently Asked Questions
When do repayments start?
The April after you graduate/leave your course, but only if you earn above the threshold.
Can I pay my loan off early?
Yes, but financial advisors often recommend against this as student loans don't affect your credit score.
What if I move abroad?
You must still repay based on equivalent UK earnings, with different thresholds for some countries.
Use our calculator above to estimate your repayments and remember these figures are illustrative. For official repayment information, always check with the Student Loans Company.
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