Student Loan Calculator UK — When Will You Pay Off Your Loan?
Free UK student loan repayment calculator for Plan 1 Plan 2 Plan 4 Plan 5 and postgraduate loans. Calculate monthly repayments and total cost.
UK student loans work very differently from regular debt. Repayments are income-contingent meaning you only pay when earning above the threshold and any remaining balance is written off after 25-40 years. Plan 2 borrowers (post-2012 England) repay 9% of income above £27295. Many graduates will never fully repay their loan making it function more like a graduate tax than traditional debt. Understanding your specific plan is crucial for financial planning.
How much student loan do I repay monthly?
On a £35000 salary with Plan 2 you repay 9% of earnings above £27295. Monthly repayment = (£35000 - £27295) x 9% / 12 = £57.79. On £50000 salary the monthly repayment is £170.44. On £30000 it is just £20.29. Repayments stop if your income drops below the threshold making it very different from a normal loan with fixed monthly payments.
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Student Loan Calculator
How This Calculator Works
This calculator uses the standard reducing balance method to compute your monthly payments. The formula takes your loan principal, annual interest rate, and tenure to calculate the exact Equated Monthly Installment (EMI) or payment amount. Each monthly payment consists of two components — principal repayment and interest charges. In the early months, a larger portion goes toward interest, but as your outstanding balance decreases, more of each payment reduces the principal. This is why making extra prepayments in the early years of your loan saves significantly more interest than prepaying later.
Tips to Get the Best Loan Deal
Always compare the Annual Percentage Rate (APR) rather than just the advertised interest rate, as APR includes processing fees, insurance charges, and other costs. Negotiate your processing fee — most banks will reduce or waive it if you ask. Choose the shortest tenure your budget allows since longer tenures dramatically increase total interest paid. Check prepayment terms before signing — RBI mandates zero prepayment penalty on floating rate home loans in India. Finally, maintain a credit score above 750 to qualify for the best rates from any lender.
Key Information
| Parameter | Details |
|---|---|
| Plan 2 Threshold | £27295 per year (2026) |
| Plan 2 Repayment Rate | 9% of income above threshold |
| Plan 5 Threshold (post-2023) | £25000 per year |
| Write-Off Period | 25 years (Plan 5) to 40 years (Plan 2) |
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Use Calculator NowFrequently Asked Questions
How much student loan do I repay monthly?
On a £35000 salary with Plan 2 you repay 9% of earnings above £27295. Monthly repayment = (£35000 - £27295) x 9% / 12 = £57.79. On £50000 salary the monthly repayment is £170.44. On £30000 it is just £20.29. Repayments stop if your income drops below the threshold making it very different from a normal loan with fixed monthly payments.
Should I overpay my student loan?
For most graduates overpaying is NOT recommended. If you will not clear the balance before write-off (25-40 years) overpayments are wasted money. Only overpay if you earn enough to repay in full well before write-off AND the interest rate exceeds what you would earn investing the same amount. Financial advisors estimate that only the top 20% of graduate earners will fully repay.
Does student loan affect my mortgage?
Student loan repayments reduce your disposable income which lenders factor into affordability calculations. A £300/month student loan repayment could reduce your maximum mortgage by approximately £50000-£70000. However lenders treat it as a committed expenditure not as debt. It does not appear on your credit file and does not affect your credit score in any way.
What is a fixed vs variable rate mortgage?
A fixed rate locks your interest rate for 2-5 years, giving payment certainty. A variable (tracker) rate moves with the Bank of England base rate and can be lower initially but carries risk of increases. Most UK buyers choose a 2 or 5 year fix then remortgage when the fixed period ends.
How much deposit do I need for a UK mortgage?
The minimum deposit is typically 5-10% of the property value. A 10% deposit opens more competitive rates, and 25% or more gets the best deals. First-time buyers may access government schemes like Shared Ownership with smaller deposits. The bigger your deposit, the lower your LTV ratio and monthly payments.
What are the stamp duty rates for 2025-26?
Post-April 2025 SDLT rates: 0% on first £125,000, 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1,500,000, and 12% above £1.5 million. First-time buyers pay 0% up to £300,000 and 5% on the portion between £300,001-£500,000 (relief lost above £500,000).
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Last updated: March 2026