HECS-HELP Calculator — When Will You Pay Off Your Student Debt?
Calculate your HECS-HELP repayment based on income. See your repayment rate compulsory repayment amount and estimated payoff timeline for your Australian student loan.
HECS-HELP is Australia's income-contingent student loan system where repayments are automatically deducted from your salary once you earn above the minimum threshold ($54435 in 2025-26). Unlike commercial loans HECS-HELP has no interest but is indexed to CPI (inflation) to maintain its real value. This means your debt grows with inflation but not with market interest rates. The system ensures graduates never face unaffordable repayments as the rate adjusts with income.
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Key Information
| Parameter | Details |
|---|---|
| Repayment Threshold | $54435 (2025-26) |
| Minimum Repayment Rate | 1% of total income above threshold |
| Maximum Repayment Rate | 10% of total income (at $151201+) |
| Indexation Rate | CPI (approximately 3-4% in 2026) |
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Use Calculator NowFrequently Asked Questions
How much HECS do I repay on $70000 salary?
On a $70000 salary the 2025-26 compulsory repayment rate is approximately 4% of your total income (not just the amount above threshold). This means $2800 per year or approximately $108 per fortnight deducted from your pay. On $100000 salary the rate increases to approximately 7% meaning $7000 per year or $269 per fortnight.
Should I pay off HECS early?
Since HECS only attracts indexation (CPI ~3-4%) and not commercial interest rates (5-7%) it is generally better financially to invest extra money rather than prepay HECS. At 7% investment returns versus 3.5% indexation you gain 3.5% annually by investing instead of repaying. However paying off HECS increases your take-home pay immediately and some people prefer being debt-free.
How long does it take to pay off HECS?
On a $40000 HECS debt at $70000 salary repaying $2800/year (with salary growth of 3% annually and indexation) it takes approximately 12-15 years to fully repay. At $100000 salary repaying $7000/year it takes approximately 6-7 years. The timeline depends heavily on salary growth career trajectory and whether you make voluntary repayments.
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Last updated: 24 March 2026