Student Loan Projection Calculator
Will you pay off your student loan, or will it be written off? Enter your balance, income, and expected growth to see a year-by-year projection of your repayments, interest, and remaining balance through to the write-off date.
How the projection works
This calculator models your student loan balance over time by combining three factors: your annual repayment (based on income above the threshold), interest accruing on your balance, and your expected income growth. Each year, interest is added to the balance first, then your repayment is subtracted.
The write-off question
The key insight this tool provides is whether you are on track to repay your loan in full before the write-off date. For many graduates — particularly those with Plan 2 loans and balances above £40,000 — the answer is no. In these cases, voluntary repayments are unlikely to be financially beneficial, because the remaining balance would be cancelled regardless.
When voluntary repayments make sense
Voluntary repayments are worth considering only if the projection shows you will repay in full. In that scenario, early repayments reduce the interest you pay over the life of the loan. Compare the effective interest rate on your loan against the returns you could get from other uses of that money — such as pension contributions (which benefit from tax relief) or mortgage overpayments.
Limitations
Interest rates are indicative and based on recent averages. Actual rates change quarterly. Thresholds are assumed frozen at 2025–26 levels. Income growth is modelled as a constant annual percentage, which is a simplification — real career trajectories are uneven. Use the results as a directional guide, not a precise forecast.
Frequently asked questions
How accurate is this projection?
This tool models your repayments using current thresholds and indicative interest rates. In practice, interest rates change quarterly (linked to RPI and Bank of England base rate), and repayment thresholds may be adjusted annually. The projection gives a useful directional estimate — not a precise figure. For Plan 2, the interest rate used is approximately 7.5% (RPI-linked), which reflects recent averages.
What does "written off" mean?
If you have not repaid your loan in full by the end of the write-off period, the remaining balance is cancelled. You owe nothing further. Plan 1 loans are written off after 25 years (or at age 65). Plan 2, 4, 5, and postgraduate loans are written off after 30 years. The written-off amount is not taxable.
Should I make voluntary repayments?
Voluntary repayments only save you money if you are on track to repay the full balance before write-off. If the projection shows your loan will be written off, voluntary repayments simply reduce the amount written off — money you would never have had to pay. Only consider voluntary repayments if the projection shows full repayment, and even then, compare the effective interest rate against other uses of that money (e.g. pension contributions or mortgage overpayments).
What income growth rate should I use?
UK average salary growth is around 2–3% per year in real terms. Early-career graduates may see faster growth (4–6%) as they progress and change roles. Be conservative in your estimate — if the projection shows write-off even at optimistic growth rates, voluntary repayments are almost certainly not worthwhile.
Does this include inflation on the threshold?
The current projection assumes thresholds remain frozen at 2025–26 levels. In practice, some plan thresholds have historically been adjusted upward (Plan 2 was previously linked to earnings growth). Frozen thresholds mean more of your income is subject to repayment over time, so this projection may slightly overestimate repayments if thresholds increase in future.
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This calculator provides estimates only. Interest rates are indicative. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.