Student Loan Total Cost Calculator
Calculate total amount you'll actually repay over the loan lifetime 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 Pay
£40,724.25
Written off after 30 years
Original Debt
£50,000.00
Total Repaid
£40,724.25
Written Off
£358,266.98
Most of your loan will be written off — you'll only pay 81% of the original amount. Think of it as a graduate tax, not a traditional loan.
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
Most graduates do not repay their student loan in full. Under Plan 5 (new students from September 2023) the loan is written off after 40 years; under Plan 2 (2012–2022) after 30 years. This makes the true cost entirely dependent on your earnings trajectory — not the headline balance.
Repayments are 9% of income above the threshold: £25,000 for Plan 5; £29,385 for Plan 2 in 2026/27. Interest accrues at RPI only (Plan 5) or RPI+up to 3% (Plan 2). On median-salary careers, interest often accrues faster than repayments early on, causing the balance to grow before eventually being written off.
For many graduates, the student loan works like a time-limited graduate tax rather than a traditional debt. High earners repay in full and pay substantial interest. Those on lower or median earnings have a portion or all of their balance written off at the end of the term. The calculator projects total repayments using realistic salary growth.
UK student loan total cost 2026. Plan 5 (post-Sept 2023 starters): typical £40k undergrad debt at start; 9% above £25k threshold; RPI only interest. Career £40k average: ~£1,350/year repayments × 40 years = £54,000 repaid (interest taking £14k of that). Career £60k+: full repayment + interest = £70k-£90k lifetime. Career under £30k: written off at 40 years, repay £15k-£30k. Plan 2 (2012-2022): typical £45-£60k total repayment.
Interest accumulation during study. Plan 5: RPI only (current ~3.0%) during study + employment. Sample £50,000 borrowed over 4 years: interest accumulates £6,000-£8,000 by graduation. Plan 2: RPI + 3% during study = much higher interest accrual (£8k-£12k by graduation on £50k). Compound effect: high-income graduates pay significant interest premium; low-income graduates have interest written off with loan at 30/40 years.
Should you repay early? Plan 2: rarely worth it. Most won't repay in full — written off at 30 years. Voluntary repayment = gift to government. EXCEPTION: high earners £75k+ guaranteed to repay in full anyway — early repayment saves interest. Plan 5: more likely to repay (40-year term, RPI-only). High earners £60k+ Plan 5: early repayment can save £5k-£15k interest. Most students: invest extra cash in ISA/pension instead (5-7% returns vs RPI interest).
What if you never reach repayment threshold? Income below threshold = no repayments. Loan continues with RPI/RPI+3% interest. Balance grows. Written off at term end (30 or 40 years). Doesn't affect credit score (UK student loans not on credit file). Doesn't affect mortgage applications (most lenders ignore). Maternity/career break/redundancy: repayments pause when income drops below threshold. Permanent disability: write-off available.
Loans vs other debt — UK student priorities. Student loans are LOWEST priority debt: low interest, income-contingent, no credit impact. Pay first: credit card debt (18-30% APR); store cards; payday loans; mortgage arrears. Pay second: car finance, personal loans. Pay LAST/never: student loans (likely written off; voluntary repayment uses cash that could earn 5-7% in ISA). Treat student loan as 'graduate tax' — automatic payroll deduction, forget about balance.
Example: Plan 5, £60,000 loan, starting salary £30,000
- Year 1 repayment: (£30,000 − £25,000) × 9% = £450/year
- RPI interest at 3%: £60,000 × 3% = £1,800 added — balance rises to £61,350
- Balance continues growing until salary rises enough to outpace interest
- At UK median salary trajectory, many Plan 5 graduates never clear balance before 40-year write-off
Frequently Asked Questions
- Will I repay my student loan in full?
- Most Plan 5 graduates (post-2023) will not repay their loan in full before the 40-year write-off. Plan 2 graduates (2012–2022) face a 30-year write-off. Whether you repay in full depends on your lifetime earnings. High earners repay everything plus interest; those on median earnings often have a substantial balance written off.
- How much interest is charged on a Plan 5 student loan?
- Plan 5 loans accrue interest at the rate of RPI inflation only, regardless of your income. This is more favourable than Plan 2, which charged RPI + up to 3% on higher incomes. The RPI rate is set annually and published by the Student Loans Company.
- Is it worth making voluntary student loan overpayments?
- For most Plan 2 and Plan 5 borrowers, voluntary overpayments are rarely financially beneficial unless you expect to repay the full balance before the write-off date. If you are unlikely to clear the full loan, any overpayment reduces the amount eventually written off rather than reducing your lifetime repayment. Run the full projection before making overpayments.