Calculator
Plan 2 + Postgrad student loan calculator (UK 2026/27)
The most common multi-plan combination for UK graduates with a Master's. Plan 2 takes 9% above £29,385; Postgrad takes 6% above £21,000; combined rate 15% above £29,385. Single calculator pre-configured for this exact combo.
Reviewed 4 May 2026 · 2026/27 rates verifiedAnnual student loan repayment
£2,095
£175/month equivalent · 9% undergrad + 6% postgrad combined
Show full breakdown
Where the maths goes
| Annual income | £40,000.00 |
|---|---|
| Undergrad thresholdLowest threshold of plan2 | £29,385.00 |
| Income above undergrad threshold | £10,615.00 |
| Undergrad repayment @ 9.0%9% on income above the threshold | £955.35 |
| Postgrad threshold | £21,000.00 |
| Income above postgrad threshold | £19,000.00 |
| Postgrad repayment @ 6.0%Separate 6% — added to undergrad if both held | £1,140.00 |
| Total annual repayment | £2,095.35 |
| Monthly equivalentHow it actually shows up on your payslip — divided by 12 | £174.61 |
Sensitivity: repayment at different incomes
Same plan set (plan2 + postgrad). Useful for planning raises, day-rate increases, or contract renewals — your SL repayment grows linearly above the threshold.
| Income | Annual SL | Monthly |
|---|---|---|
| £25,000 | £240 | £20 |
| £30,000 | £595 | £50 |
| £40,000 | £2,095 | £175 |
| £50,000 | £3,595 | £300 |
| £60,000 | £5,095 | £425 |
| £80,000 | £8,095 | £675 |
| £100,000 | £11,095 | £925 |
The maths in 60 seconds
Plan 2 + Postgrad is the dominant multi-plan combination for UK graduates born after 1990 who took a Master's degree. Plan 2 covers the undergraduate loan from September 2012 to July 2023 starts, repaid at 9% of income above £29,385 in 2026/27. Postgrad covers Master's and PhD loans from August 2016 onwards, repaid at 6% of income above £21,000 (frozen).
The two plans run independently, so your payslip shows both deductions separately. The combined rate above the higher threshold (£29,385) is 15%, which sits on top of income tax (20% basic, 40% higher) and employee NI (8% basic, 2% above UEL). For a higher-rate Plan 2 + Postgrad holder the combined marginal rate on each extra £1 of employment income reaches 57% (40% IT + 2% NI + 15% SL).
Worked example at £40,000 income
Take a contractor with £40,000 of total taxable income (a common figure for first-year contractors and recent graduates).
- Plan 2: 9% × (£40,000 − £29,385) = 9% × £10,615 = £955/year
- Postgrad: 6% × (£40,000 − £21,000) = 6% × £19,000 = £1,140/year
- Combined: £2,095/year, or about £175/month
For someone in their late 20s who's also paying mortgage, pension, and council tax, that's a material drag on take-home. Worth modelling alongside your salary-sacrifice pension decisions because each £1 of sacrifice saves 15p of student loan repayment plus the income tax + NI saving.
Combined repayment at common incomes
| Income | Plan 2 (9% above £29,385) | Postgrad (6% above £21,000) | Combined | Combined / month |
|---|---|---|---|---|
| £25,000 | £0 | £240 | £240 | £20 |
| £30,000 | £55 | £540 | £595 | £50 |
| £40,000 | £955 | £1,140 | £2,095 | £175 |
| £50,000 | £1,855 | £1,740 | £3,595 | £300 |
| £75,000 | £4,105 | £3,240 | £7,345 | £612 |
| £100,000 | £6,355 | £4,740 | £11,095 | £924 |
Note that at £100k of income the combined deduction reaches £11,095/year, almost £1,000/month. Plus this income is in PA-taper territory (£100k+ tapers your personal allowance by £1 per £2 of income), so the actual marginal rate on each extra £1 of employment income at this level is around 67% combining IT + NI + SL + the lost PA.
Frequently asked questions
- Why does Plan 2 + Postgrad add 15% above £29,385?
- Both plans run independently and stack additively. Plan 2 takes 9% of every £1 above £29,385. Postgrad takes 6% of every £1 above £21,000. By the time your income clears the higher threshold (£29,385), both plans are already deducting, so the combined marginal rate is 9% + 6% = 15%. Below £29,385 only Postgrad is active (between £21,000 and £29,385 you pay 6%); below £21,000 neither plan deducts.
- I have £30k of dividends from my Ltd plus £12,570 salary, am I above the threshold?
- Yes. Student loan repayments use total taxable income, not just employment income. Dividends count. Salary £12,570 + dividends £30,000 = £42,570 total income. Plan 2 deduction: 9% × (£42,570 − £29,385) = £1,187. Postgrad deduction: 6% × (£42,570 − £21,000) = £1,294. Combined £2,481/year, settled via your self-assessment if you're a Ltd director rather than via PAYE.
- If I'm on PAYE / umbrella, how is this collected?
- Direct from your payslip. When you join an umbrella or start a new PAYE job, you complete an SL1 form indicating which plans you hold. The umbrella or employer applies BOTH the Plan 2 and Postgrad deductions to each pay period. You'll see two student loan lines on your payslip (or sometimes one combined line with a breakdown). The HMRC multi-plan rule for two-undergrad-plan combinations doesn't apply here because Postgrad isn't an undergrad plan; it's a separate scheme.
- Does salary sacrifice help?
- Yes, this is one of the strongest cases for salary sacrifice. Sacrificing £5,000 of salary into pension reduces both Plan 2 and Postgrad's repayment base by £5,000, saving 15% × £5,000 = £750/year of student loan deduction on top of the income tax + NI savings. For Plan 2 + Postgrad holders specifically, this is on top of the standard salary-sacrifice savings, making the multiplier higher than for single-plan holders. See /calculator/salary-sacrifice-pension for the full mechanics.
- Should I overpay either loan?
- Postgrad first if at all. Postgrad carries RPI + 3% interest (the highest of any UK student loan plan), so overpayment can clear it before write-off and save the high interest. Plan 2 has a sliding-scale interest (RPI for low earners up to RPI + 3% for high earners) and 30 years to write-off, so overpayment rarely pays off in expected value. If you have spare cash and both loans, prioritise Postgrad. The standard MoneySavingExpert guidance applies (mse.me/student-finance) and is worth running for your specific case.
- What happens when I clear one but not the other?
- The deduction shrinks accordingly. If you clear Postgrad first (more likely given smaller balance and faster overpayment-clear), you'll keep paying 9% above £29,385 for Plan 2 alone until that's cleared or written off at the 30-year mark. The Student Loans Company tracks each plan's balance separately and notifies HMRC when one is finished. Your payslip drops to a single Plan 2 deduction at that point.
Other student loan calculators
Multi-plan hub
All combinations explained: Plan 1 + Plan 2, Plan 4 + Postgrad, Plan 5 + Postgrad, etc.
Plan 2 only
The most common single plan: £29,385 threshold, 9% rate, 30-year write-off.
Postgrad only
£21,000 frozen threshold, 6% rate, RPI + 3% interest. Highest interest rate of any UK plan.
Related guides
Student loans for contractors
How SL repayments work for umbrella, sole trader, and Ltd directors taking dividends.
Salary sacrifice + student loan
Sacrifice reduces your SL repayment base, saving 15% for Plan 2 + Postgrad holders on top of IT + NI savings.
Blog
Plan 5 vs Plan 2: which is worse?
The post-Augar reforms compared. Where Plan 5 hurts, and the small group it actually helps.
Reviewed: 4 May 2026 · See how we calculate · not financial advice.