Calculator
Postgraduate student loan repayment calculator (2026/27)
Master's / PhD loans from August 2016 onwards. £21,000 frozen threshold (lowest of any plan), 6% rate. Always stacks separately from any undergrad plan, combined max rate 15%.
Reviewed 29 April 2026 · 2026/27 rates verifiedAnnual student loan repayment
£540
£45/month equivalent · 6% postgrad only
Show full breakdown
Where the maths goes
| Annual income | £30,000.00 |
|---|---|
| Postgrad threshold | £21,000.00 |
| Income above postgrad threshold | £9,000.00 |
| Postgrad repayment @ 6.0%Separate 6% — added to undergrad if both held | £540.00 |
| Total annual repayment | £540.00 |
| Monthly equivalentHow it actually shows up on your payslip — divided by 12 | £45.00 |
Sensitivity: repayment at different incomes
Same plan set (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 | £540 | £45 |
| £40,000 | £1,140 | £95 |
| £50,000 | £1,740 | £145 |
| £60,000 | £2,340 | £195 |
| £80,000 | £3,540 | £295 |
| £100,000 | £4,740 | £395 |
How Postgrad actually works
Postgrad is the loan scheme for Master's and PhD students from August 2016 onwards. The mechanics: 6% of every pound of income above £21,000 (the lowest threshold of any plan). Repayments via PAYE for employees; via self-assessment for self-employed and Ltd directors.
The stacking model, why 6% not 9%
Postgrad ALWAYS stacks separately on top of any undergrad plan. The 6% rate exists because most Postgrad holders also hold an undergrad plan: combining 9% + 6% gives a 15% combined max rate, which the Treasury views as the politically-acceptable ceiling. If Postgrad were 9%, the combined rate would be 18%, pushing the marginal tax rate for higher-earning graduates with both loans above 65% (income tax + NI + 18%), which government has been unwilling to do.
Plan + Postgrad worked example
At £40,000 income with Plan 2 + Postgrad:
- Plan 2: 9% × (£40,000 − £29,385) = £955/year
- Postgrad: 6% × (£40,000 − £21,000) = £1,140/year
- Total: £2,095/year, about £175/month of student loan deduction
Try other plan combinations in the calculator above by adding the relevant plans to the multi-select.
Interest at RPI + 3%
Postgrad charges RPI + 3%, the highest interest rate of any UK student loan plan, with no income-banded reduction. The high real interest combined with smaller typical balance (the loan caps around £12,000–£15,000) means voluntary overpayments are more attractive on Postgrad than on any other plan. Use MoneySavingExpert's calculator to model your specific case.
What this calculator doesn't cover
- Interest accrual at RPI + 3% on your specific balance. SLC online account is authoritative.
- Doctoral Loan vs Master's Loan mechanics, same repayment terms (6% above £21,000) but different maximum loan amounts and study-period rules. Outside this calculator's scope.
- NHS / teacher / armed forces forgiveness schemes, some professional pathways have student loan repayment programmes that pay off chunks of your balance. Speak to your employer / professional body.
- Time-to-write-offprojection (30-year cap). MoneySavingExpert's calculator (mse.me/student-finance) handles the full balance trajectory.
Frequently asked questions
- What is the Postgraduate loan?
- A separate loan scheme for English/Welsh students taking Master's or PhD courses from August 2016 onwards. Maximum loan around £12,167 (Master's) or larger for PhD. The repayment terms are different from undergrad: 6% rate (vs 9% for undergrad), £21,000 threshold (lowest of any plan), and 30-year write-off. Crucially it ALWAYS stacks on top of any undergrad plan you hold, it never replaces undergrad repayments.
- Why is the rate 6% instead of 9%?
- Policy choice when Postgrad was introduced in August 2016. The 6% rate plus £21,000 lowest-threshold combines to give a moderate level of repayment for typical Master's earners while not piling 9% on top of an existing 9% undergrad rate. Without the lower 6%, someone with both undergrad + Postgrad would be paying 18% above the threshold, politically unacceptable. The current 9% + 6% = 15% combined max rate is HMRC's policy compromise.
- What's the Postgrad threshold for 2026/27?
- £21,000, frozen since the loan was introduced in 2016 and remains frozen. Postgrad and Plan 5 are the two frozen-threshold plans; Plans 1, 2, and 4 are uplifted annually by RPI. The freeze is a deliberate fiscal-drag policy: as wages rise nominally, more workers cross the threshold and start repaying.
- Postgrad ALWAYS stacks separately: explain?
- If you hold an undergrad plan + Postgrad, you pay BOTH deductions independently. They're not combined like multiple undergrad plans (which take ONE 9% deduction at the lowest threshold). So a Plan 2 + Postgrad holder at £40,000 income pays: Plan 2 × (40,000 − 29,385) × 9% = £955 + Postgrad × (40,000 − 21,000) × 6% = £1,140 = £2,095 total. The Postgrad deduction is calculated and deducted separately from your undergrad deduction.
- What's the maximum combined rate?
- 15%. That's 9% undergrad + 6% Postgrad. This applies to income above the higher of the two thresholds you hold. For example: Plan 2 + Postgrad = 15% on income above £29,385 (the Plan 2 threshold; Postgrad threshold £21,000 is lower so already passed). Plan 1 + Postgrad = 15% on income above £26,900. Plan 4 + Postgrad = 15% on income above £33,795 (Plan 4 has the highest undergrad threshold).
- What's Postgrad's interest rate?
- RPI + 3%, the highest interest rate of any UK student loan plan. There's no income-banded reduction like Plan 2 has. The 3% real interest rate combined with the 30-year write-off and the typically smaller balance means many Postgrad borrowers DO repay in full before write-off, unlike Plan 5 borrowers who often won't.
- When does Postgrad get written off?
- 30 years after the April you became eligible to repay (same as Plans 2 and 4). For someone who completed a Master's at 23 and started repaying at 24, write-off is at age 54. Smaller balance + relatively higher interest means most Postgrad borrowers do clear the loan before write-off, but for those who never reach high earnings consistently the 30-year clock can still run out.
- Should I make voluntary overpayments?
- More likely yes than for other plans, especially if you're a higher earner. Postgrad's 3% real interest is the highest of any plan, and the smaller balance means voluntary overpayments can clear the loan years before write-off, eliminating the high interest charge. The MoneySavingExpert calculator (mse.me/student-finance) is the standard tool, it usually flags Postgrad as the only plan where overpayment makes sense for moderate earners. One exception: if you also have an undergrad plan with significant balance, prioritise Postgrad clearance first because of the rate differential.
Related calculators
Plan 2 calculator
The most common undergrad plan to combine with Postgrad.
Plan 2 + Postgrad
Pre-configured calc + worked example for the most common multi-plan combo. Combined 15% max rate.
Take-home pay (PAYE)
Full PAYE chain including SL, see your net after every deduction.
Related guides
Reviewed: 29 April 2026 · See how we calculate · not financial advice.