Plan 5 Student Loan Calculator
If you started university after September 2023, you are on the new Plan 5. Repayments start in April 2026. Calculate exactly how much will be deducted from your payslip.
Annual Plan 5 Deduction
£900
That's £75 taken out of your payslip every month.
Compared to older graduates (Plan 2)
Because Plan 5 has a much lower repayment threshold (£25,000) than Plan 2 (£27,295), you are paying £207 more every year than someone who went to university just a year before you.
The April 2026 Shock: Plan 5 Begins
The UK government radically changed the student finance system for students in England starting courses from September 2023 onwards. These students were placed on Plan 5.
Because you only start repaying student loans the April after you graduate, the very first batch of Plan 5 graduates will see deductions hit their payslips for the first time in April 2026.
Why Plan 5 is worse than Plan 2
If you have older friends who went to university before you, they are on Plan 2. Plan 5 was designed by the government to force graduates to pay back significantly more money over their lifetimes.
- Lower Threshold: You start paying at £25,000 (Plan 2 starts at £27,295). This means you pay roughly £200 more per year in tax.
- Longer Lifespan: You will be paying it off for 40 years before it gets wiped (Plan 2 gets wiped after 30 years). You will be paying this loan into your 60s.
How is the deduction calculated?
Your employer will automatically deduct Plan 5 repayments from your salary through the PAYE system. You do not need to set up a direct debit.
The calculation is 9% of everything you earn OVER £25,000 a year.
- If you earn £24,000, you pay nothing.
- If you earn £35,000, you pay 9% of £10,000 = £900 a year (£75 a month).
Does the interest rate matter?
For Plan 5, the interest rate is locked to the Retail Price Index (RPI) rate of inflation. This means the loan only grows in line with the cost of living.
However, for most graduates, the interest rate is largely irrelevant. Because the debt is so high, and the repayment threshold is so low, your monthly payslip deduction is determined entirely by your salary, not the size of your loan. A larger loan just means you will be making those monthly payments for a longer period of time (up to 40 years).
What if I have multiple jobs?
Student loan deductions are calculated on a per-employment basis, not cumulatively, unless you submit a Self Assessment tax return. If you have two part-time jobs, each paying £15,000 a year, neither employer will deduct Plan 5 repayments because neither job individually crosses the £25,000 threshold, even though your total income is £30,000.
However, if HMRC notices this, they may ask you to make a manual repayment at the end of the tax year.
See your full take-home including Plan 5
Our main calculator handles all 5 student loan plans alongside PAYE tax, NI, and pension.