Student Loan Repayment Calculator UK 2026 — Plan 1, 2, 4, 5 Compared

Student loan repayments can be confusing with different plans and thresholds. Here’s how to calculate what you pay and understand your specific loan.

Student Loan Plans Compared

2026/27 Overview

Plan	Who	Threshold	Rate	Write-off
Plan 1	England/Wales (pre-2012), NI	£24,990	6.25%*	25 years after first due
Plan 2	England/Wales (2012-2023)	£27,295	RPI + 3%**	30 years after graduation
Plan 4	Scotland	£31,395	6.25%*	30 years after graduation
Plan 5	England (from Aug 2023)	£25,000	RPI only	40 years after graduation
Postgrad Loan	Masters/PhD (2016+)	£21,000	RPI + 3%	30 years

*Linked to Bank of England rate **Varies with income

Repayment Calculator

Repayment Formula

Monthly repayment = (Annual Salary - Threshold) × 9% ÷ 12

Plan 1 Repayments (Threshold: £24,990)

Salary	Above Threshold	Annual Repay	Monthly Repay
£25,000	£10	£0.90	£0
£30,000	£5,010	£451	£38
£35,000	£10,010	£901	£75
£40,000	£15,010	£1,351	£113
£50,000	£25,010	£2,251	£188
£60,000	£35,010	£3,151	£263
£80,000	£55,010	£4,951	£413

Plan 2 Repayments (Threshold: £27,295)

Salary	Above Threshold	Annual Repay	Monthly Repay
£28,000	£705	£63	£5
£30,000	£2,705	£243	£20
£35,000	£7,705	£693	£58
£40,000	£12,705	£1,143	£95
£50,000	£22,705	£2,043	£170
£60,000	£32,705	£2,943	£245
£80,000	£52,705	£4,743	£395

Plan 4 Repayments (Threshold: £31,395)

Salary	Above Threshold	Annual Repay	Monthly Repay
£32,000	£605	£54	£5
£35,000	£3,605	£324	£27
£40,000	£8,605	£774	£65
£50,000	£18,605	£1,674	£140
£60,000	£28,605	£2,574	£215

Plan 5 Repayments (Threshold: £25,000)

Salary	Above Threshold	Annual Repay	Monthly Repay
£26,000	£1,000	£90	£8
£30,000	£5,000	£450	£38
£35,000	£10,000	£900	£75
£40,000	£15,000	£1,350	£113
£50,000	£25,000	£2,250	£188

Interest Rates Explained

Plan 1 & 4 Interest

Based On	Current Rate
Lower of RPI or BoE rate + 1%	~6.25%

Plan 2 Interest (Complex!)

Your Income	Interest Rate
Below £27,295	RPI only (~4%)
£27,295-£49,130	RPI + 0-3% (sliding)
Above £49,130	RPI + 3% (~7%)

While studying: Always RPI + 3%

Plan 5 Interest

Based On	Rate
RPI only	~4%

Plan 5 interest is capped at RPI — lower than Plan 2.

Will I Ever Pay Off My Loan?

Reality Check by Plan

Plan	Typical Graduate	Will They Pay Off?
Plan 1	£20k debt	Often yes (lower debt)
Plan 2	£50-60k debt	Most won’t fully
Plan 4	£15-30k debt	Often yes (Scotland fees lower)
Plan 5	£40-50k debt	Many won’t (40 year write-off)

Who Actually Pays Off Plan 2?

Career Type	Starting Salary	Lifetime Earnings	Pays Off?
High-earning professional	£50k+	£3m+	Likely yes
Average graduate	£30k	£1.5m	Probably not
Public sector	£25-35k	£1.2m	No

Institute for Fiscal Studies estimates ~80% of Plan 2 borrowers never fully repay.

When Is Write-Off?

Write-Off Rules

Plan	Written Off
Plan 1 (pre-2006)	Age 65 or 25 years after first repayment
Plan 1 (2006-2012)	25 years after first repayment due
Plan 2	30 years after first repayment due
Plan 4	30 years after first repayment due
Plan 5	40 years after first repayment due
Postgrad Loan	30 years after first repayment due

What “Written Off” Means

Effect	Detail
Balance disappears	No further payments required
No tax implication	Unlike some debts
Doesn’t affect credit	Student loans don’t appear on credit report

Should I Repay Early?

General Rule: Don’t Repay Early

Reason	Explanation
Loan may be written off	Why pay more than necessary?
Low effective interest	Only pay while earning above threshold
Better uses for money	Pension, ISA, mortgage
No credit impact	Student loans don’t affect credit score

When Early Repayment Makes Sense

Situation	Why Repay
Very high earner (£100k+)	Will pay off anyway, stop interest
Small balance remaining	Clean slate
Emigrating permanently	May have to repay anyway
Mortgage maximisation	Some lenders count SL as debt

Early Repayment Calculator

Should you pay off a £30,000 Plan 2 loan?

Scenario	Lifetime Repaid	Outcome
Average salary (£40k)	~£35,000	Overpaid by £5k
High salary (£80k)	~£50,000+	Should pay off early
Low salary (£30k)	~£15,000	Would have wasted £15k

Multiple Loans

If You Have Multiple Plans

Combination	How Repayments Work
Plan 1 + Plan 2	9% on each threshold (18% above both!)
Plan 2 + Postgrad	9% Plan 2 + 6% Postgrad (15% total)
Any + Postgrad	Postgrad adds 6% above its threshold

Example: Plan 2 + Postgrad Loan

Salary: £50,000	Plan 2	Postgrad	Total
Threshold	£27,295	£21,000
Above threshold	£22,705	£29,000
Rate	9%	6%
Annual repayment	£2,043	£1,740	£3,783

Postgrad loans add £1,740/year on a £50k salary.

Impact on Take-Home Pay

£40,000 Salary Example

Plan	Gross	Tax	NI	SL	Take-Home
No loan	£40,000	£5,486	£2,794	£0	£31,720
Plan 1	£40,000	£5,486	£2,794	£1,351	£30,369
Plan 2	£40,000	£5,486	£2,794	£1,143	£30,577
Plan 4	£40,000	£5,486	£2,794	£774	£30,946
Plan 5	£40,000	£5,486	£2,794	£1,350	£30,370

Self-Employed Repayments

How It Works

Feature	Detail
When calculated	Self Assessment tax return
Based on	Profit above threshold
When paid	With tax bill (January 31)
Payments on account	May apply

Example: Self-Employed, Plan 2

Profit	Above £27,295	Repayment
£30,000	£2,705	£243
£50,000	£22,705	£2,043

Student Loan and Mortgages

How Lenders View It

Lender Approach	Impact
Count as committed expenditure	Reduces borrowing amount
Ignore it	No impact
Varies by lender	Check specific policy

Reducing Impact

Strategy	Effect
Choose lender that ignores SL	Maximum borrowing
Pay off loan (if makes sense)	Removes monthly payment
Show net salary	Some forms allow

Key Takeaways

1. Check your plan — different thresholds and rules
2. Repay 9% above threshold — not of total salary
3. Most don’t pay off Plan 2 — especially mid-earners
4. Don’t rush to repay — money may be wasted
5. Write-off is real — 25-40 years depending on plan
6. Multiple loans stack — can be expensive

For related content, see our take-home pay calculator, graduate job salary guide, and how to build wealth.