Useful next calculations
Rates and sources, 2026/27 starting thresholds
Annual scenario model starting with confirmed 2026/27 plan thresholds. Interest, salary growth, future threshold growth and years to write-off are entered by the user and are not forecasts.
| Band or figure | Rate |
|---|---|
| Plan 1 threshold | £26,900 |
| Plan 2 threshold | £29,385 |
| Plan 4 threshold | £33,795 |
| Plan 5 threshold | £25,000 |
Source: HMRC — 2026/27 student-loan thresholds. Source checked for 2026/27 starting thresholds.
When to use this calculator
- When you need a fast estimate before making a bigger decision.
- When you want to compare a few scenarios using the same assumptions.
- When you need a clearer starting point before using a detailed quote or formal document.
- When you want to sanity-check a figure you have seen elsewhere.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Student loan plan | Plan 1 |
| Current loan balance (£) | £45,000 |
| Current annual repayment income (£) | £42,000 |
| Assumed annual salary growth (%) | 3% |
For those figures the calculator returns:
- Comparison: Overpayment route increases total cash paid before write-off in this model
- Mandatory-only cash paid: £62,167.03
- Mandatory-only end status: Balance remains at modelled write-off
- Mandatory-only balance at write-off: £22,444.92
- Overpayment route cash paid: £67,167.03
- Overpayment route end status: Balance remains at modelled write-off
- Overpayment route balance at write-off: £9,820.11
- Cash paid saving from overpayment: £-5,000.00
- Interest accrued reduction: £7,624.81
Method & assumptions
This decision calculator compares two annual projections: continuing with income-contingent mandatory repayments, and adding the one-off or annual voluntary payments entered. Each route uses the selected plan's confirmed 2026/27 threshold initially, then applies the user-entered salary, threshold and interest assumptions.
The result separates cash actually paid from the balance remaining at the modelled write-off. This distinction matters because interest accrued on a balance that is ultimately written off is not the same as cash cost to the borrower. A voluntary payment can reduce interest yet still increase lifetime cash paid.
The model is annual and cannot predict income, government policy, future thresholds or loan rates. It does not model postgraduate loans, multiple concurrent plans, overseas fixed repayments, refunds or payroll timing. Confirm the balance and write-off terms with the Student Loans Company before making an irreversible voluntary payment.
Common mistakes
- Using optimistic assumptions without testing a more cautious scenario.
- Comparing outputs from different tools without checking that the inputs match.
- Treating the result as a final quote instead of a planning estimate.
- Rounding inputs too aggressively.
What to do next
- Try at least one more scenario so you can compare a realistic range.
- Use the related calculators below to cross-check the decision from another angle.
- Write down the key outputs from your best scenarios before you decide.
- If the result surprises you, change one input at a time to isolate the driver.