Calculate Your Student Loan Repayments – Work Out Your UK Student Finance Repayment
Need to calculate your student loan payment or work out your student loan repayments? Our free UK student loan repayment calculator helps you estimate your monthly student loan payments, total interest costs, and repayment period. Whether you're a recent graduate starting your career or planning your finances, this calculator provides accurate estimates based on your income and loan details.
Why Use Our Student Loan Repayment Calculator?
Understanding your student loan repayments is crucial for financial planning in the UK. Our calculator helps you:
- ✓Calculate your monthly student loan payment based on your annual income
- ✓Work out your student loan repayments for different income scenarios
- ✓Calculate your student loan repayment UK for Plan 1, Plan 2, or Plan 5 loans
- ✓Estimate your student loan repayment and total interest costs
- ✓Calculate your student finance repayment with income-based calculations
- ✓Figure out your student loan repayment period and payoff timeline
- ✓View complete repayment schedule showing monthly breakdown
How to Calculate Your Student Loan Repayment
- •Enter Your Loan Balance: Input your current student loan balance. This is the total amount you borrowed plus any accrued interest.
- •Enter Your Annual Income: Input your gross annual income before tax. This determines how much you'll repay each month.
- •Select Your Repayment Plan: Choose Plan 1 (pre-2012), Plan 2 (post-2012), or Plan 5 (post-2023). Each plan has different repayment thresholds.
- •Enter Interest Rate: Student loan interest rates vary by plan and income. Check the current rates on the Student Loans Company website.
- •View Results: See your monthly payment, annual repayment, total interest, and repayment period. Use the repayment schedule to see month-by-month breakdown.
Understanding UK Student Loan Repayments
UK student loans use an income-based repayment system. Here's how it works:
- •Repayment Threshold: You only start repaying when your income exceeds a certain threshold (varies by plan)
- •Repayment Rate: You repay 9% of your income above the threshold
- •Monthly Calculation: Monthly payment = (Annual income - Threshold) × 9% ÷ 12
- •Automatic Deduction: If you're employed, repayments are automatically deducted from your salary
- •Interest Accrual: Interest continues to accrue on your loan balance, even if you're not making repayments
- •Write-off Period: After 30 years (or retirement age), any remaining balance is written off
Calculate Your Student Loan Repayment UK – Plan Types
Different repayment plans have different thresholds and rules:
- •Plan 1: For students who started university before 2012 in England/Wales, or any student in Scotland/Northern Ireland. Threshold: £22,015 per year (2024-2025)
- •Plan 2: For students who started university between 2012 and 2023 in England/Wales. Threshold: £27,295 per year (2024-2025)
- •Plan 5: For students who started university from 2023 onwards in England/Wales. Threshold: £25,000 per year
Calculate Your Monthly Student Loan Payment
To calculate your monthly student loan payment, use this formula:
Monthly Payment = (Annual Income - Repayment Threshold) × 9% ÷ 12
If your income is below the threshold, your monthly payment is £0.
Example: If you earn £30,000 per year on Plan 2 (threshold £27,295):
- • Annual repayment amount = (£30,000 - £27,295) × 9% = £243.45
- • Monthly payment = £243.45 ÷ 12 = £20.29
Calculate My Student Loan Repayment Income Based
UK student loans are income-based repayment loans, meaning:
- ✓Your repayments increase as your income increases
- ✓If your income drops below the threshold, repayments stop
- ✓You can't be forced to pay more than 9% of income above the threshold
- ✓Repayments are affordable and based on what you earn
Calculate My Student Finance Repayment
Student Finance is the UK government system for student loans. To calculate your student finance repayment:
- •Check your loan balance on the Student Loans Company website
- •Know your repayment plan (Plan 1, 2, or 5)
- •Use your current annual income
- •Our calculator will show your monthly and annual repayments
Calculate My Minimum Student Loan Payment
Your minimum student loan payment is determined by your income:
- •If income ≤ threshold: Minimum payment = £0
- •If income > threshold: Minimum payment = 9% of (income - threshold) ÷ 12
- •You cannot pay less than this minimum while employed
- •You can make voluntary extra payments if you wish
Example Calculation
For a £45,000 student loan balance with £30,000 annual income on Plan 2:
- • Repayment threshold: £27,295
- • Annual repayment: (£30,000 - £27,295) × 9% = £243.45
- • Monthly payment: £20.29
- • At this rate, it would take approximately 30 years to pay off (or be written off)
- • Total interest depends on the interest rate and how long you take to repay
Key Tips for UK Student Loan Borrowers
- ⚠Student loan interest rates change annually. Check current rates on the Student Loans Company website.
- ⚠Repayments are automatically deducted from your salary if you're employed (PAYE).
- ⚠If you're self-employed, you'll need to declare your student loan on your Self Assessment tax return.
- ⚠Most graduates won't fully repay their loans before the 30-year write-off period.
- ⚠Making voluntary extra payments can reduce interest, but may not be financially beneficial for everyone.
- ⚠Student loans don't affect your credit score and are written off after 30 years.
FAQ: Calculate Your Student Loan Repayments
Q: How do I calculate my student loan repayment?
A: Use our calculator by entering your loan balance, annual income, repayment plan, and interest rate. The calculator will show your monthly payment, which is 9% of your income above the repayment threshold.
Q: What is the repayment threshold for UK student loans?
A: The threshold varies by plan: Plan 1 (£22,015), Plan 2 (£27,295), and Plan 5 (£25,000) for 2024-2025. You only repay when your income exceeds this threshold.
Q: How much will I pay per month on my student loan?
A: Your monthly payment is calculated as 9% of your annual income above the threshold, divided by 12. If your income is below the threshold, you pay nothing.
Q: Can I pay off my student loan early?
A: Yes, you can make voluntary extra payments. However, for most graduates, it's often better to let the loan be written off after 30 years rather than paying it off early, especially if you're on a lower income.
Q: What happens if I don't earn enough to repay my student loan?
A: If your income is below the repayment threshold, you make no repayments. Interest may still accrue, but after 30 years (or retirement age), any remaining balance is written off.
Summary
Use our Calculate Your Student Loan Repayments calculator to work out your student loan repayments, calculate your monthly student loan payment, and estimate your total repayment costs. Whether you're calculating your student loan repayment UK, figuring out income-based repayments, or estimating your student finance repayment, this calculator provides the insights you need to plan your finances effectively.
Remember that UK student loans are designed to be affordable, with repayments based on your income. Most graduates won't fully repay their loans before the 30-year write-off period, which is perfectly normal and expected.