Postgraduate Loan Total Cost Calculator
Calculate total postgraduate loan repayment over 30 years with salary growth projections.
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
Total You'll Actually Repay
£38,476.89
Repaid in 29 years
Original
£12,000.00
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
This calculator projects the total lifetime cost of your postgraduate loan, including interest, over the 30-year repayment period. It models your salary trajectory and calculates annual repayments at 6% of income above £21,000, while interest accrues at RPI on the remaining balance.
Because the repayment threshold is lower than for undergraduate loans (£21,000 versus £29,385 for Plan 2), postgraduate loan repayments begin at a lower salary. However, the 6% rate means each monthly payment is smaller. Whether you repay in full or have the balance written off depends on your career earnings.
Enter your loan amount, starting salary and expected pay growth. The calculator shows year-by-year repayments, the interest that accrues and the projected balance at write-off. It also shows the total amount repaid compared to the original loan, so you can see the true cost of borrowing.
UK Postgraduate Loan 2026/27. Master's: up to £13,090/year covering tuition + living costs. PhD: separate Doctoral Loan up to £29,390 over 3 years. Eligibility: 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. Application via gov.uk/postgraduate-loan from May for September academic year.
Repayment maths. Sample £40k salary, Plan 3: 6% × (£40,000 − £21,000) = £1,140/year (£95/month). £60k salary: 6% × £39k = £2,340/year. £80k: 6% × £59k = £3,540/year. Combined with undergrad Plan 5: 9% + 6% = 15% above £25k threshold on income up to combined threshold. Sample £50k with both: undergrad £2,250 + postgrad £1,740 = £3,990/year combined deductions.
Total cost of UK Master's. Tuition (Home, full-time): £8,000-£15,000 typical. Living costs (12 months — Master's includes summer): £12,000-£15,000. Total Master's cost: £20,000-£30,000. Postgraduate Loan max £13,090: covers 40-65% of typical cost. Shortfall funded by: scholarships, savings, employer sponsorship, family help, career development loan, bank loan.
Will you repay in full? Postgrad Loan interest RPI+3% throughout (no income-dependent tapering). Sample: £13k loan + £30k undergrad debt at 30. Combined high deductions. Career £50-£70k: most graduates repay postgrad loan in 15-25 years. Career under £40k: significant portion written off at 30 years. Always pay back over 20-25 years for most professional careers.
ROI of UK Master's degree. 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: marginal premium. £13k Postgrad Loan + £5k personal: £18k investment. Payback 2-5 years STEM; 8-15 years humanities. Career-change Master's (PGCE teaching, conversion law): high ROI if profession underpaid before.
Example: £12,000 loan, starting salary £30,000, 3.5% pay growth
- Year 1 repayment: (£30,000 − £21,000) × 6% = £540
- Year 1 interest (RPI 3.5%): £12,000 × 3.5% = £420
- Year 10 (salary ~£42,300): repaying ~£1,278/year
- Projected total repaid: ~£18,500 over 30 years
Frequently Asked Questions
- What does the Postgraduate Loan Total Cost Calculator do?
- Calculate total postgraduate loan repayment over 30 years with salary growth projections.
- Is this based on current student finance rates?
- Yes. This calculator uses Student Loans Company rates and thresholds for the 2026/27 academic and financial year. Thresholds and interest rates are updated annually.
- Which student loan plan am I on?
- Plan 1 applies if you started before September 2012 (England/Wales) or are from Northern Ireland. Plan 2 applies from September 2012 in England/Wales. Plan 4 is for Scotland. Plan 5 applies from September 2023.