Student Loan Repayment Calculator

How student loan repayment calculated?

Your employer will take repayments of your loan from your salary during the pay period. The pay period could be any time; week, two weeks and calendar month etc. There is an earnings threshold, which are:

  • £352 a week
  • £1,527 a month
  • £18,330 a year

These thresholds are for the year 2018-2019 and subject to change with the new tax year.
You will pay 9% of your income over the threshold. For example, if you are earning £1,800 per month then you will pay 9% on the difference between you have earned and threshold:

  • £1,800 – £1,527 = £273
  • 9% of £273 is £24.57 only.

The same formula applies if you are getting paid on monthly basis or earn more than £18,330 a year by working extra hours.