Useful next calculations
Rates and sources, 2026/27
2026/27 Postgraduate Loan (Plan 3) at 6% of income above £21,000, with optional undergraduate Plan 1/2/4/5 at 9%.
| Band or figure | Rate |
|---|---|
| Postgraduate threshold | £21,000 |
| Postgraduate rate | 6% |
| Plan 2 undergraduate threshold | £29,385 |
| Undergraduate rate | 9% |
Source: HMRC — 2026 to 2027 student and postgraduate loan deduction tables. Source checked for 2026/27.
When to use this calculator
- Before comparing personal loan or credit offers on the same amount and term.
- When you want to see total interest, not only the monthly payment.
- When you are choosing between a shorter term and a lower monthly debit.
- When you need a planning estimate before making a credit application.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Annual income (£) | £35,000 |
| Undergraduate plan (0=none, 1, 2, 4, 5) | 2 |
For those figures the calculator returns:
- Postgrad monthly: £70.00
- Undergrad monthly: £42.11
- Combined monthly: £112.11
Method & assumptions
UK Postgraduate Loans (Plan 3) repay 6% of income above £21,000 in 2026/27. That is separate from any undergraduate Plan 1, 2, 4 or 5 deduction of 9% above that plan’s threshold. If you have both, payroll takes both.
This estimate uses annual income and HMRC’s 2026/27 student and postgraduate loan deduction tables. It does not model overseas thresholds, extra payments, or write-off dates. Check your SLC account and GOV.UK for official figures.
Official references
Common mistakes
- Judging an offer by the monthly payment alone and ignoring total interest.
- Using a representative APR as if it were a guaranteed personal rate.
- Forgetting arrangement fees or early-settlement terms.
- Comparing two loans that do not use the same amount and term.
What to do next
- Compare offers using the same amount and term, then check total repayable.
- Add fees and read early-settlement terms before treating the estimate as the full cost.
- Test a shorter term to see whether a higher payment is worth the interest saved.
- If several debts are involved, use a consolidation or payoff planner next.