Student loan repayment calculator
Student loan repayments for 2026/27 are 9% of income above the plan threshold (£29,385 on Plan 2, £26,900 on Plan 1), or 6% above £21,000 for a Postgraduate Loan, under gov.uk's rules on repaying a student loan. This calculator estimates the monthly deduction, including both loans together.
How is student loan repayment worked out?
Repayment is a percentage of what is earned above a threshold, not a percentage of the whole salary and not a fixed instalment. For Plan 1, 2, 4 and 5 the rate is 9%, under gov.uk's rules on what is repaid. For a Postgraduate Loan it is 6%. Earning under the threshold means the repayment is zero, which is why two people with the same debt can pay very different amounts.
The thresholds differ by plan: Plan 5 starts at £25,000, Plan 2 at £29,385, Plan 1 at £26,900, Plan 4 at £33,795 and the Postgraduate Loan at £21,000. The outstanding balance does not change the monthly figure at all. It only decides how long repayments continue.
What would an example salary repay?
Take a £32,000 salary on Plan 2. Income over the £29,385 threshold is £2,615. At 9% that is an estimated £235 a year, about £20 a month. Adding a Postgraduate Loan brings another 6% off everything over £21,000, so the same salary would also lose an estimated £55 a month on top.
Common questions
How much is my student loan repayment?
You pay 9% of everything you earn over your plan threshold (6% for a Postgraduate Loan). On a £32,000 salary on Plan 2 that is about £20 a month. Earn below the threshold and you pay nothing.
Do I pay two student loans at once?
Yes. An undergraduate plan and a Postgraduate Loan are separate deductions. You pay 9% over the undergraduate threshold and 6% over the £21,000 postgraduate threshold from the same income, so both come off together.
Is student loan taken before or after tax?
After. The repayment is worked out on your gross pay over the threshold, but it is collected through PAYE alongside tax and National Insurance, so it comes out of the same payslip.
Does my repayment change if I get a pay rise?
Yes, because it is a percentage of income above the threshold, not a fixed sum. A pay rise increases the amount over the threshold, so the 9% (or 6%) takes a little more.
What happens if my income drops below the threshold?
Repayments stop automatically. The deduction is calculated each pay period, so in any month you earn under the monthly threshold, nothing is taken.
How is student loan repayment worked out?
Repayment is 9% of income above the plan threshold for Plan 1, 2, 4 and 5, or 6% above £21,000 for a Postgraduate Loan, under gov.uk's repaying your student loan guidance. Thresholds range from £25,000 on Plan 5 to £33,795 on Plan 4. Income below the threshold means no repayment that period, and the outstanding balance itself never changes the monthly amount.
What would an example salary repay?
On a £32,000 Plan 2 salary, the estimated repayment is about £20 a month, 9% of income above £29,385. Adding a Postgraduate Loan brings a further estimated £55 a month, 6% above £21,000, deducted from the same pay through PAYE.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.