Student Loan Calculator, 2026/27

How this is calculated

This calculator applies the standard student loan repayment formula: 9% of income above the relevant plan's threshold for undergraduate loans, or 6% above the postgraduate loan threshold. Each plan has its own threshold, so the plan you are on has a real effect on how much comes out of your pay each month.

Plan 2 has the highest threshold of the undergraduate plans at £29,385, reflecting loans taken out in England and Wales from 2012 to 2023. Plan 5, for loans from 2023 onwards, has a lower threshold of £25,000, meaning repayments start sooner and continue for longer, up to 40 years, rather than being written off after 30.

If you have both an undergraduate plan and a postgraduate loan, both deductions apply simultaneously against their own separate thresholds, which this calculator does not combine; run each plan through separately and add the results together.

Employed versus self-employed repayment

Employees have student loan repayments deducted automatically through PAYE by their employer, based on pay in each period compared to the pro-rated threshold for that period. Self-employed people instead have their repayment calculated on their full self-assessment return, based on total annual profit compared to the annual threshold.

This can create timing differences: an employee with uneven monthly pay may have too much or too little deducted across the year compared with the annual calculation a self-employed person faces in one go.

Directors with dividend income

For company directors, only earned income counted for student loan purposes matters for PAYE deductions on salary, but the annual self-assessment calculation includes dividend income too when working out the total repayment due for the year, which can create an unexpected balance to pay through the tax return.

This is a common surprise for directors who keep salary low and draw dividends, since PAYE will show minimal or no student loan deduction, while the year-end self-assessment calculation includes dividends and produces a repayment due.

How do I know which student loan plan I am on?

It depends on where you studied and when your course started. Plan 1 generally applies to English and Welsh students starting before 2012, Plan 2 from 2012 to 2023, Plan 5 from 2023 onwards, and Plan 4 to Scottish students; you can check your exact plan on your Student Loans Company account.

Do dividends count towards student loan repayments?

Yes, for the annual self-assessment calculation, total income including dividends is used to work out the repayment due for the year, even though PAYE deductions during the year are based on salary alone.

Can I repay my student loan faster voluntarily?

Yes, voluntary overpayments can be made directly to the Student Loans Company at any time, which reduces the interest charged over the life of the loan, though this needs weighing against other financial priorities.

What happens if I have both an undergraduate and postgraduate loan?

Both are repaid at the same time from the same income, each against its own threshold, so a graduate with both loans effectively pays 9% above one threshold and 6% above the other, on the same pay.