UK Student Loan Repayment Calculator 2026/27
Estimate deductions and a salary-growth projection for Plans 1, 2, 4, 5 and postgraduate loans.
What this calculator explains
UK student-loan payroll deductions are based on earnings above the threshold for the applicable pay period, not on the outstanding balance. Different plans use different thresholds, and a Postgraduate Loan can be deducted at the same time as one undergraduate plan.
The page separates payroll deductions from lifetime loan cost. Interest, salary growth, write-off rules and Self Assessment repayments require additional assumptions and are linked to official guidance.
How the estimate is calculated
- Convert the annual threshold into the exact supported pay-period threshold or use official payroll tables.
- Subtract the threshold from gross earnings in that pay period.
- Apply 9% to the excess for Plans 1, 2, 4 or 5.
- Apply 6% to earnings above the Postgraduate Loan threshold when selected.
- Use statutory payroll rounding for the result.
- Annualise only as an illustration when salary is assumed constant.
Formula
Undergraduate plan deduction = 9% of pay above the plan’s pay-period threshold; Postgraduate Loan deduction = 6% above its threshold
Worked example
For £40,000 annual earnings on Plan 2 in 2026/27, the annual threshold is £29,385. The excess is £40,000 − £29,385 = £10,615. At 9%, the simple annual illustration is £955.35, or about £79.61 per month before statutory pay-period rounding. Actual payroll deductions are calculated per pay period.
Rules and assumptions
- For 2026/27, annual thresholds are £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4, £25,000 for Plan 5 and £21,000 for Postgraduate Loans.
- Undergraduate plan deductions are 9% of pay above the applicable pay-period threshold; Postgraduate Loan deductions are 6% above its threshold.
- Payroll deductions are calculated by pay period, so annual division is explanatory and can differ slightly from actual payroll rounding.
Included in the estimate
- Plans 1, 2, 4 and 5
- Postgraduate Loan alongside an undergraduate plan
- Weekly, monthly and supported pay frequencies
- Bonus and overtime effects in a pay period
- Tax-year-specific thresholds
- Clear annualised illustration
Not included or not guaranteed
- Current loan balance and interest
- Write-off-date or lifetime repayment prediction
- Repayments from overseas income
- Self Assessment in every circumstance
- A guarantee of the employer’s payroll result
Which student-loan plan am I on?
The plan depends on where and when the course was started and other eligibility facts. Users should confirm the plan through official records or guidance.
Can Plan 2 and a Postgraduate Loan be deducted together?
Yes, when both apply. The undergraduate plan uses 9% above its threshold and the postgraduate loan uses 6% above its separate threshold.
Why is the deduction based on pay rather than balance?
Payroll deductions are income-contingent. The outstanding balance affects whether and when the loan is eventually cleared, not the payroll formula.
Does a bonus increase the deduction?
A bonus increases earnings in that pay period and can therefore increase the deduction for that period.
What if I have two jobs?
Each employer normally applies payroll thresholds to that employment separately. Self Assessment and other rules can affect the final position.
Does pension contribution reduce student-loan deductions?
Treatment depends on how the pension contribution affects payroll earnings. Salary sacrifice can differ from relief-at-source contributions.
Official sources
Applicable period: 2026-04-06/2027-04-05 · Last reviewed: September 3, 2026
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