Student Loan Deduction Calculator
Estimate annual student loan repayments for Plan 1, Plan 2, Plan 4, Plan 5, or a Postgraduate Loan. Actual payroll deductions are worked out by pay period and may differ from this annual estimate.
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Enter your gross income and click "Calculate" to see your take-home pay breakdown.
How UK Student Loan Repayments Work (2026/27)
In the United Kingdom, student loans do not behave like standard commercial debt. Under Section 22 of the Teaching and Higher Education Act 1998 (THEA 1998) and the Education (Student Loans) (Repayment) Regulations 2009 (SI 2009/470), student loan repayments operate as an income-contingent graduate contribution tax collected directly through HMRC's PAYE payroll mechanism.
Repayments are assessed pay-period by pay-period on gross contractual earnings exceeding statutory plan thresholds. Under Section 62 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), student loans are calculated on earnings subject to Class 1 National Insurance. If earnings fall below the threshold in any week or month, exactly £0.00 is deducted.
Official UK Student Loan Plans & Repayment Thresholds (2026/27)
| Loan Plan | Jurisdiction & Entry Window | Annual Threshold | Monthly Threshold | Rate | Loan cancellation |
|---|---|---|---|---|---|
| Plan 1 | Pre-2012 English/Welsh starters or Northern Irish students | £26,900 | £2241.67 | 9% | 25 years or age 65 |
| Plan 2 | English & Welsh undergraduate courses (1 Sept 2012 – 31 July 2023) | £29,385 | £2448.75 | 9% | 30 years from April first due |
| Plan 4 | Scottish students funded through SAAS (Higher/Further Ed) | £33,795 | £2816.25 | 9% | 30 years or age 65 |
| Plan 5 | English undergraduate courses starting on or after 1 August 2023 | £25,000 | £2083.33 | 9% | 40 years from April first due |
| Postgraduate | English & Welsh Master's and Doctoral postgraduate degrees | £21,000 | £1750.00 | 6% | 30 years from April first due |
Monthly Student Loan Deductions by Salary (2026/27)
These figures divide the annual threshold calculation by 12 for comparison. Payroll deductions are calculated by pay period and can differ; the last column combines Plan 2 and Postgraduate Loan annual estimates for illustration.
| Gross Salary | Plan 1 (9%) | Plan 2 (9%) | Plan 4 (9%) | Plan 5 (9%) | Postgrad (6%) | Dual Plan 2 + PG |
|---|---|---|---|---|---|---|
| £25,000 | £0.00 | £0.00 | £0.00 | £0.00 | £20.00 | £20.00 |
| £30,000 | £23.25 | £4.61 | £0.00 | £37.50 | £45.00 | £49.61 |
| £35,000 | £60.75 | £42.11 | £9.04 | £75.00 | £70.00 | £112.11 |
| £45,000 | £135.75 | £117.11 | £84.04 | £150.00 | £120.00 | £237.11 |
| £60,000 | £248.25 | £229.61 | £196.54 | £262.50 | £195.00 | £424.61 |
| £80,000 | £398.25 | £379.61 | £346.54 | £412.50 | £295.00 | £674.61 |
Two loan deductions
An undergraduate loan and a Postgraduate Loan can both be deducted when the relevant earnings exceed each threshold. This page's calculator accepts one plan at a time; it does not calculate a combined deduction.
Salary Sacrifice Savings Leverage
A genuine salary sacrifice can affect pay used for payroll student loan deductions. Other pension contribution methods can have different treatment; check your scheme and payslip.
Self-Assessment Student Loan Rules & Unearned Income
If you are self-employed or complete a Self-Assessment tax return (SA100), student loan repayments are calculated on your total taxable income under Part 3 of the Education (Student Loans) (Repayment) Regulations 2009. Unlike PAYE employees whose liability is split weekly or monthly, self-employed graduates have their repayment calculated on total annual net profit exceeding the annual threshold.
Crucially, unearned income—such as dividends from limited companies, rental profits, or interest—is included in your student loan repayment calculation if it exceeds £2,000 per tax year. Any unearned income above £2,000 is combined with your employment profits and subjected to the 9% or 6% deduction, payable alongside your Payments on Account by 31 January.
Frequently Asked Questions: UK Student Loans
Clear answers based on official HMRC rules and statutory guidance.
Authored and verified by UK tax and higher education specialists in accordance with the Teaching and Higher Education Act 1998 (Section 22), Education (Student Loans) (Repayment) Regulations 2009 (SI 2009/470), and Income Tax (Earnings and Pensions) Act 2003 (Section 62). Calculations reflect the 2026/27 tax year.
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Visit Blog HubRepayments are not the same as interest
Check the plan in your student finance account before comparing repayments. Pay-period thresholds and rounding can differ from annual threshold divided by twelve.
An undergraduate plan and a Postgraduate Loan may run together. A widget with one plan selector models one at a time; any combined comparison table is an annual illustration. Interest, cancellation dates and future earnings need separate assumptions.
Reproducible worked example
At £35,000 with Plan 2, the annual illustration is (£35,000 − £29,385.00) × 9% = £505.35. Interest charged to the loan balance is a separate calculation.
2026/27, England/Wales/Northern Ireland, standard 1257L, no other income, no student loan or pension unless explicitly selected in the example. Figures use the same annual engine as the calculator.
Check the rules for your circumstances
Official guidance supports the rules described here; it does not approve or certify this calculator. Confirm dates, eligibility and unsupported cases before making a financial decision.