Plan 2 Student Loan Calculator 2026/27
For England courses that started between September 2012 and July 2023, and Wales from September 2012. 9% of income over £29,385, written off after 30 years.
Last updated: October 2026 · 2026/27 thresholds · interest rates for 1 September 2026 to 31 August 2027
Your Plan 2 loan
From your Student Loans Company online account.
Full years since the April you were first due to repay.
Optional. See whether overpaying changes the outcome.
Plan 2 repayment this year
£505.35 /year
£42.11 a month: 9% of £5,615 above the £29,385 threshold.
Unlikely to be repaid in full: about £124,618 written off after 27 more years.
Each extra £1 you earn
20% income tax + 8% NI + 9% student loan = 37% deducted, so you keep 63%.
Year-by-year projection
| Year | Salary | Interest | Repaid | Balance |
|---|---|---|---|---|
| 1 | £35,000 | £2,408 | £505 | £51,903 |
| 2 | £36,050 | £2,570 | £600 | £53,873 |
| 3 | £37,132 | £2,742 | £697 | £55,917 |
| 4 | £38,245 | £2,925 | £797 | £58,045 |
| 5 | £39,393 | £3,121 | £901 | £60,266 |
| 6 | £40,575 | £3,332 | £1,007 | £62,590 |
| 7 | £41,792 | £3,558 | £1,117 | £65,031 |
| 8 | £43,046 | £3,800 | £1,229 | £67,602 |
| 9 | £44,337 | £4,056 | £1,346 | £70,313 |
| 10 | £45,667 | £4,219 | £1,465 | £73,066 |
| 11 | £47,037 | £4,384 | £1,589 | £75,861 |
| 12 | £48,448 | £4,552 | £1,716 | £78,697 |
| 13 | £49,902 | £4,722 | £1,846 | £81,573 |
| 14 | £51,399 | £4,894 | £1,981 | £84,486 |
| 15 | £52,941 | £5,069 | £2,120 | £87,435 |
| 16 | £54,529 | £5,246 | £2,263 | £90,418 |
| 17 | £56,165 | £5,425 | £2,410 | £93,433 |
| 18 | £57,850 | £5,606 | £2,562 | £96,477 |
| 19 | £59,585 | £5,789 | £2,718 | £99,548 |
| 20 | £61,373 | £5,973 | £2,879 | £102,641 |
| 21 | £63,214 | £6,158 | £3,045 | £105,755 |
| 22 | £65,110 | £6,345 | £3,215 | £108,885 |
| 23 | £67,064 | £6,533 | £3,391 | £112,027 |
| 24 | £69,076 | £6,722 | £3,572 | £115,177 |
| 25 | £71,148 | £6,911 | £3,759 | £118,329 |
| 26 | £73,282 | £7,100 | £3,951 | £121,478 |
| 27 | £75,481 | £7,289 | £4,149 | £124,618 |
Holds the threshold and interest rate at today's levels and adds interest once a year; the Student Loans Company charges it daily, and both figures are reviewed each year.
How Plan 2 repayments work
Repayments depend on income, not on how much you borrowed. Your employer deducts 9% of pay above the £29,385 2026/27 threshold through PAYE (the threshold is applied per pay period, so a month's pay above £2,448.75 triggers a deduction). Self-employed borrowers repay through Self Assessment. Earn below the threshold and you pay nothing, while interest still builds up.
This calculator projects your balance each year until it is cleared or written off after 30 years, so you can see whether you are on course to repay it, how much you repay in total, and whether overpaying would change anything. Compare all the plans side by side on the student loan calculator.
You are on Plan 2 if you studied an undergraduate course or PGCE in England that started between 1 September 2012 and 31 July 2023, or in Wales that started on or after 1 September 2012. Advanced Learner Loans and Higher Education Short Course Loans in England are also Plan 2. English students starting on or after 1 August 2023 are on Plan 5 instead.
The 2026/27 threshold is £29,385. You repay 9% of everything above it: on £35,000 that is £505.35 a year, or £42.11 a month.
Plan 2 is the only plan where interest depends on what you earn. From 1 September 2026 to 31 August 2027, income up to £29,385 is charged 4.1%, rising on a sliding scale to RPI plus 3% at £52,885. That would be 7.1%, but Plan 2 interest is capped at 6.0% for this period. While you are studying, the RPI plus 3% rate applies (also capped).
On £35,000 your rate is 4.8%. On a £50,000 balance, that is about £2,408 of interest a year against £505.35 of repayments, so the balance keeps growing.
Student loan calculators by plan
This calculator is part of a family. The main calculator covers the general case.
Main calculator: Student Loan Calculator
Monthly repayments for Plan 1, 2, 4, 5 and Postgraduate at the latest HMRC thresholds.
Plan 1 Student Loan Calculator
Plan 1 repayments over the threshold, plus the 25-year or age 65 write-off for older loans.
Plan 4 Student Loan Calculator
Scottish Plan 4 repayments at the highest threshold, with your Scottish tax and NI marginal rate.
Plan 5 Student Loan Calculator
Plan 5 repayments for English courses from August 2023, projected over the 40-year term.
Postgraduate Loan Calculator
Postgraduate Loan repayments at 6%, on top of your undergraduate plan, projected to write-off.
Related calculators
Other free UK tools that follow on from this calculation.
Student Loan Calculator
Monthly repayments for Plan 1, 2, 4, 5 and Postgraduate at the latest HMRC thresholds.
Salary Calculator
Annual, monthly and weekly take-home pay after PAYE, NI, pension and student loan.
Salary Sacrifice Calculator
How much pension you actually buy for every pound of take-home pay you give up.
Mortgage Affordability Calculator
How much UK lenders will typically offer at 4.5×, 5× or 5.5× income with your deposit.
Reviewed by Alexandre Bernier, LLM (UK), CFP®
Educational tool: estimates only. Not individual financial, investment, tax or legal advice. Using it does not create an adviser-client relationship. Rules and figures change; check them against current HMRC and GOV.UK guidance and speak to a qualified professional. Editorial policy →
Sources
Every rate and threshold used by this calculator is taken from the official pages below. If a figure here disagrees with one of these, the official page is right, please tell us.