Student Loan Payoff Calculator
✓ Verified for 2026/27Loan Parameters
How We Calculated This
- Input Loan details: Enter loan balance, plan type (1, 2, 4, 5, PG), interest rate, and current salary.
- Model progressive repayments: Repayments are calculated as 9% of salary exceeding the threshold.
- Project compound interest: Compound interest is added annually to the outstanding balance based on RPI inflation rules.
- Simulate write-off terms: Assess whether the loan will be fully paid off or written off after 30 or 40 years.
Real-World Examples
Projecting standard Plan 2 repayment timeline.
Balance: £35,000 Starting Salary: £45,000 Year 1 Repayment: £1,593.45 Remaining Balance: Bal + Interest - Repayment. Write-off occurs after 30 years if not fully paid.
Frequently Asked Questions
Plan 1, Plan 2, and Postgraduate loans are written off 30 years after you become eligible to repay. Plan 5 loans (for students starting Sept 2023 onwards) are written off after 40 years.
For most basic-rate earners, early repayment is not recommended because the loan is written off after 30 years. Only very high earners who are guaranteed to repay the full balance before write-off save money by paying early.
Interest rates are linked to the Retail Price Index (RPI) inflation rate. Plan 2 interest ranges from RPI up to RPI + 3% depending on your salary.
Repayments stop automatically if your income drops below your plan threshold. You only pay when you earn above the limit.
Yes. While the debt is not listed on credit reports, the monthly repayment reduces your net income, which mortgage lenders factor into their affordability checks.
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About This Calculator
This calculator uses the latest HMRC rates for the 2026/27 tax year. For illustrative purposes only — always consult a qualified tax adviser for formal advice.