Student Loan Calculator Repayment UK – Calculate Your Monthly Repayments Based on Salary
Need to calculate your student loan repayment in the UK? Our free student loan calculator repayment UK helps you estimate your monthly repayments based on your salary. Whether you're on Plan 1, Plan 2, Plan 5, or have a postgraduate loan, this calculator provides accurate estimates for 2025. Calculate your student loan repayment monthly payments, explore different student loan repayment plans, and see how extra payments can reduce your total interest. Repayments are automatically deducted through PAYE (Pay As You Earn) for employed borrowers.
Understanding UK Student Loan Repayment Plans
UK student loans use an income-driven repayment system where your repayments are calculated as a percentage of your income above a threshold. The student loan repayment calculator based on salary shows exactly how much you'll pay each month:
- •Plan 1: Repay 9% of income above £22,015 per year (2025). For students who started before 2012 in England/Wales, or students from Scotland/Northern Ireland.
- •Plan 2: Repay 9% of income above £27,295 per year (2025). For students who started between 2012-2023 in England/Wales.
- •Plan 5: Repay 9% of income above £25,000 per year. For students who started after 2023 in England/Wales.
- •Postgraduate Loan: Repay 6% of income above £21,000 per year (2025).
Student Loan Calculator Repayment Monthly
Our student loan calculator repayment monthly feature calculates your exact monthly repayment amount. The formula is simple:
Monthly Payment = (Annual Income - Repayment Threshold) × Repayment Rate ÷ 12
If your income is below the threshold, your monthly payment is £0. However, interest continues to accrue on your loan balance.
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
PAYE (Pay As You Earn) System
In the UK, student loan repayments are automatically deducted from your salary through the PAYE system if you're employed. This means:
- ✓Automatic Deduction: Your employer deducts your student loan repayment directly from your salary before you receive it
- ✓No Manual Payments: You don't need to make separate payments if you're employed
- ✓Self-Employed: If you're self-employed, you'll need to declare your student loan on your Self Assessment tax return and make payments through HMRC
- ✓Multiple Jobs: If you have multiple jobs, repayments are calculated separately for each job
Student Loan Repayment Calculator Income Driven
Our student loan repayment calculator income driven feature shows how your repayments change as your income changes. This is particularly useful for:
- •Understanding how salary increases affect your repayments
- •Planning for career changes or promotions
- •Budgeting for different income scenarios
- •Comparing repayment amounts across different salary levels
Student Loan Repayment Calculator with Extra Payments
Our student loan repayment calculator with extra payments feature shows how making additional payments can reduce your total interest and shorten your payoff period:
- ✓Extra Monthly Payments: Add a fixed amount to your monthly repayment
- ✓Lump Sum Payments: Make a one-time payment to reduce your principal
- ✓Interest Savings: See how much interest you'll save with extra payments
- ✓Time Savings: Calculate how many months/years you'll save
Important Note: For most UK graduates, making extra payments may not be financially beneficial since loans are written off after 30 years. However, if you expect to pay off your loan before the write-off period, extra payments can save significant interest.
Student Finance Calculator Repayment
Our student finance calculator repayment feature helps you understand your repayment obligations under the UK Student Finance system. Key points:
- •Interest Accrues Daily: Interest is calculated daily on your loan balance
- •Variable Rates: Interest rates vary by plan and income level (RPI + up to 3% for Plan 2)
- •Interest Continues: Even if you're not making repayments (if income is below threshold), interest continues to accrue
- •30-Year Write-Off: After 30 years (or when you reach retirement age), any remaining balance is written off
Student Loan Repayment Calculator Scotland
Scottish students typically use Plan 1 for their student loans. Our student loan repayment calculator Scotland feature works with Plan 1, which has a repayment threshold of £22,015 per year (2025). Scottish students repay 9% of their income above this threshold, and repayments are automatically deducted through PAYE if employed.
Student Loan Repayment Calculator Plan 1
Plan 1 is used by students who started before 2012 in England/Wales, or students from Scotland/Northern Ireland. Our student loan repayment calculator Plan 1 feature calculates repayments based on:
- •Repayment Threshold: £22,015 per year (2025)
- •Repayment Rate: 9% of income above the threshold
- •Interest Rate: Typically RPI (Retail Price Index), which varies annually
Key Tips for UK Student Loan Borrowers
- ⚠Student loan interest rates change annually. Check current rates on the Student Loans Company website (gov.uk).
- ⚠Repayments are automatically deducted from your salary through PAYE if you're employed.
- ⚠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 - especially if you won't pay off the loan before write-off.
- ⚠Student loans don't affect your credit score and are written off after 30 years (or retirement age).
FAQ: Student Loan Calculator Repayment UK
Q: How do I calculate my student loan repayment UK?
A: Use our calculator by entering your loan balance, annual income (salary), repayment plan (Plan 1, 2, or 5), and interest rate. The calculator will show your monthly payment, which is 9% (or 6% for postgraduate) of your income above the repayment threshold.
Q: How does PAYE work for student loans?
A: If you're employed, your employer automatically deducts your student loan repayment from your salary through the PAYE system. You don't need to make separate payments. If you're self-employed, you'll need to declare your student loan on your Self Assessment tax return.
Q: What is the repayment threshold for Plan 1 in 2025?
A: The Plan 1 repayment threshold is £22,015 per year for 2025. You only repay when your income exceeds this threshold.
Q: Should I make extra payments on my student loan?
A: For most UK graduates, making extra payments may not be financially beneficial since loans are written off after 30 years. However, if you expect to pay off your loan before the write-off period, extra payments can save significant interest. Use the calculator to see potential savings.
Summary
Use our Student Loan Calculator Repayment UK to calculate your monthly repayments based on your salary, explore different repayment plans (Plan 1, Plan 2, Plan 5, and Postgraduate), and see how extra payments can reduce your total interest. Whether you're calculating repayments for Scotland, England, Wales, or Northern Ireland, understanding your repayment obligations through the income-driven system and PAYE is essential for effective financial planning in 2025.
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. Use the calculator to understand your repayment obligations, explore extra payment options, and plan your finances accordingly. Check the Student Loans Company website (gov.uk) for the most up-to-date information on interest rates and thresholds.