How to use the student loan calculator
- Choose your plans. Your annual statement or online account shows them. Select more than one if, for example, you have Plan 2 and a Postgraduate Loan.
- Enter each balance and the April you were first due to repay. That is usually the April after you left your course; the write-off date is counted from it.
- Leave interest blank to use the official rates from 1 September 2026, or type your own assumption.
- Add your salary and expected pay growth, and an optional monthly overpayment.
The results update as you type: the repayment taken from your pay now, a chart of yearly repayments and the balance, the total you repay, the amount written off, and a comparison with and without overpaying.
2026/27 thresholds, interest and write-off by plan
| Plan | Threshold | Rate | Interest from Sept 2026 | Written off after |
|---|---|---|---|---|
| Plan 1 | £26,900 | 9% | 4.1% | 25 years |
| Plan 2 | £29,385 | 9% | 4.1% to 6% | 30 years |
| Plan 4 (Scotland) | £33,795 | 9% | 4.1% | 30 years |
| Plan 5 | £25,000 | 9% | 4.1% | 40 years |
| Postgraduate Loan | £21,000 | 6% | 6% | 30 years |
Write-off is counted from the April you were first due to repay. Plan 2 interest depends on income: RPI (4.1%) at £29,385 or less, rising on a sliding scale towards RPI plus 3% at £52,885, but capped at 6% from 1 September 2026 to 31 August 2027. Older loans have different rules: Plan 1 loans first paid before September 2006 are written off at age 65, and Plan 4 loans first paid before August 2007 at 65 or after 30 years, whichever comes first. The calculator does not model the age rule.
With more than one undergraduate plan, you repay 9% over the lowest threshold and the money is split between plans. A Postgraduate Loan is a separate 6% deduction on top. Sources: gov.uk: What you pay and gov.uk: When your loan is written off.
Worked example: Plan 2, £45,000 balance on a £35,000 salary
Suppose you owe £45,000 on Plan 2, were first due to repay in April 2024, earn £35,000 and expect a 3% pay rise each year. In 2026/27 you repay 9% of the £5,615 you earn above £29,385, which is £505 a year or £42.11 a month. Interest at that salary is 4.82%, adding about £2,205 in the first year, so the balance grows.
Over the whole term the calculator projects total repayments of £61,182, and the remaining £107,281 is written off in April 2054. Overpaying £100 a month raises the total to £94,782, which is £33,600 more, and the loan is still written off. Overpaying £500 a month clears it by April 2034 for £55,224, saving £5,958.
Does overpaying your student loan save money?
It depends on whether the loan would be repaid before it is written off. If it would be cleared anyway, as many Plan 1 loans and the loans of high earners are, overpaying cuts the interest you pay and can save money. If it would be written off with a balance left, every extra pound you pay is a pound the government would otherwise have cancelled, so overpaying usually makes the loan cost you more in total, unless you overpay enough to clear it well before the write-off date.
The comparison under the results shows both cases for your own figures. It does not account for what else the money could do, such as paying off dearer debt or saving into a pension, and it treats future pounds the same as today's.
Assumptions and limits
The projection starts at the beginning of the 2026/27 tax year with the balance you enter. It works month by month: interest is added, then the deduction from your pay, then any overpayment, which goes to the loan with the highest interest rate first. Salary rises once a year in April. Repayment thresholds are held at 2026/27 levels, and the interest rate you choose stays the same for the whole term, so later changes by the government will move the results. Real deductions are worked out on each payday, so a bonus month or a change of job can change them. Self-employed borrowers repay through Self Assessment on the same thresholds.
Frequently asked questions
How much is the Plan 2 repayment threshold for 2026/27?
The Plan 2 threshold is £29,385 a year (£2,448 a month) for 2026/27. You repay 9% of anything you earn above it, so on £35,000 you repay about £505 a year, or £42 a month.
When is my student loan written off?
Plan 1 loans are written off 25 years after the April you were first due to repay (or at 65 for loans first paid before September 2006). Plan 2, Plan 4 and Postgraduate Loans are written off after 30 years, and Plan 5 after 40 years. Loans are also cancelled if you die, and may be if you cannot work because of illness or disability.
What happens if I have Plan 2 and a Postgraduate Loan?
You pay both at once: 9% of your income above £29,385 towards Plan 2, and 6% of your income above £21,000 towards the Postgraduate Loan. Select both plans in the calculator to see them together.
Why is my balance going up even though I am repaying?
Interest is added to the whole balance every month, while repayments depend only on your income above the threshold. On a large Plan 2 or Plan 5 balance and a modest salary, the interest added each year can be more than you repay.
Should I overpay my student loan?
Only if the loan would otherwise be repaid before it is written off, or you can overpay enough to clear it well before then. If a balance would be written off anyway, overpaying usually raises the total you pay. The comparison in the calculator shows which applies to your figures.
Is this calculator financial advice?
No. It is an estimate based on the assumptions you enter and the official 2026/27 figures. Thresholds and interest rates change, so check your balance and plan in your online student loan account before deciding whether to overpay.