Postgraduate Loan Repayment Calculator
Calculate postgraduate loan repayments at 6% above £21,000. See if your balance is growing or shrinking.
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
Monthly Repayment
£45.00
6% of income above £21,000
Annual Repayment
£540.00
Annual Interest
£876.00
Net Balance Change
+£336.00/yr
Written off in
30 years
Postgraduate loan: 6% above £21,000, interest at RPI + 3% (7.3%). Written off 30 years after the April you were first due to repay. Repaid alongside Plan 1/2/4/5 (not instead of).
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Postgraduate Master's loans of up to £12,471 (2026/27) are available for taught and research master's courses. Repayment is at 6% of income above £21,000. This is collected alongside any existing undergraduate loan repayment — the two are separate deductions, so you can end up paying 9% + 6% = 15% of income above the respective thresholds.
Interest is charged at RPI (currently around 3–4%). The loan is written off 30 years after the April following course completion. Unlike undergraduate loans, the postgraduate loan has no means-testing on household income — the full amount is available to all eligible students.
Enter your salary to see monthly repayments. If you also have an undergraduate Plan 2 loan, the calculator shows both deductions and the combined impact on your take-home pay.
UK Postgraduate Loan 2026/27. Up to £13,090/year (Master's) — covers tuition AND living costs (combined loan). PhD: separate Doctoral Loan up to £29,390 over 3 years. Available to: under 60, UK resident, first Master's. Repayment: 6% above £21,000/year salary (Plan 3). Interest: RPI + 3% throughout. Written off after 30 years. Repaid alongside undergraduate loan if applicable (different threshold + rate).
Postgrad Loan vs other funding. Compare to: scholarships (free money, competitive), studentships (PhD-only, fully-funded), employer sponsorship, savings, family contribution. Postgrad Loan covers max £13k — Master's tuition often £8-£15k + £10k+ living costs = £18-£25k total. Shortfall: career development loans, bank loan, family help. Apply via gov.uk/postgraduate-loan from May (academic year starts September).
Combined repayments — undergrad + postgrad. Both loans simultaneously: 9% above £25k (Plan 5) + 6% above £21k (Postgrad) = combined 15% on income above £25k. Sample £40k salary: 9% × £15k = £1,350 (Plan 5); 6% × £19k = £1,140 (Postgrad) = £2,490/year combined. Net £207/month deduction. £60k salary: £3,150 + £2,340 = £5,490/year. Marginal cost of crossing thresholds — postgraduate loan kicks in earlier than Plan 5.
Master's degree ROI. Average UK Master's graduate earns £4,000-£10,000/year MORE than equivalent undergrad-only. Lifetime earnings premium: £100k-£400k. BUT depends on field: STEM, finance, law, medicine — strong ROI. Humanities, arts — limited premium. £13k Postgrad Loan + £5k personal contribution = £18k investment. Payback period: 2-5 years for STEM graduates; 8-15 years for humanities. Career change Masters (e.g. PGCE teaching): high ROI if profession underpaid before.
Should you take the Postgraduate Loan? YES if: can't fund Master's another way; the qualification will raise earning power. Repayment automatic via PAYE — no decisions. Loan written off at 30 years if unpaid. NO if: degree won't change career trajectory; you'd take debt unnecessarily; existing high earner. Interest RPI+3% throughout — significantly more expensive than Plan 5. Many postgrad loan holders DO repay in full (unlike Plan 2 where most don't). Forecast: graduates earning £40k+ pay back full + interest within 15-20 years.
Example: £35,000 salary, Postgraduate Loan only
- Income above threshold: £35,000 − £21,000 = £14,000
- Annual repayment: £14,000 × 6% = £840
- Monthly deduction: £70.00
- If also on Plan 2: additional £57.79/month (total £127.79)
Frequently Asked Questions
- What does the Postgraduate Loan Repayment Calculator do?
- Calculate postgraduate loan repayments at 6% above £21,000. See if your balance is growing or shrinking.
- Does this use current UK interest rates?
- You can enter any interest rate to model different scenarios. The Bank of England base rate and FCA guidelines influence typical lending rates available in the UK market.
- Should I get professional debt advice?
- If you are struggling with debt, free professional advice is available from StepChange (0800 138 1111), Citizens Advice, and the National Debtline (0808 808 4000). This calculator provides estimates only.