UK Student Loan Overpayment Calculator
Compare repayments with and without voluntary overpayments. If a balance would otherwise be cancelled, overpaying can increase total cash paid.
Rule year: 2026/27 · GBP · Sources checked
Extra total cash paid: overpayment minus baseline
One established loan plan and user-established cancellation horizon. Monthly interest approximation, constant APR and current thresholds, annual income growth, end-month payments capped at amount owed. No daily interest, simultaneous undergraduate/postgraduate debt, payroll rounding, future thresholds, rate changes or cancellation eligibility determination.
Compare repayments and possible cancellation
Cancellation date is supplied by you. Interest is monthly; 2026/27 repayment thresholds remain fixed, salaries change annually, and daily-interest or payroll rounding is excluded. A positive cash difference means more paid, even if the debt clears earlier.
| Scenario | Total paid | Interest accrued | Remaining balance |
|---|---|---|---|
| No voluntary overpayments | £0.00 | £10,480.61 | £40,480.61 |
| With voluntary overpayments | £12,000.00 | £8,506.46 | £26,506.46 |
For informational purposes only. This estimate is not financial advice, a tax return, a payroll calculation or a lender decision. See the supported circumstances and exclusions below.
How this calculator works
UK student-loan repayments depend on repayment income above a plan threshold, rather than a conventional fixed payment. This scenario holds the 2026/27 threshold and your entered interest rate constant, grows salary annually at your chosen rate, and compares required repayments against those repayments plus voluntary extra payments. Both scenarios end when the loan is repaid or your entered cancellation horizon arrives. Total cash paid can be higher with overpayments when a remaining balance would otherwise be cancelled. No future rule or salary prediction is implied.
Formula and rules
Monthly required repayment = max(0, annual repayment income − current plan threshold) × plan rate / 12. Monthly balance = prior balance + monthly interest − capped required and voluntary payments.
Assumptions and limitations
One established loan plan and user-established cancellation horizon. Monthly interest approximation, constant APR and current thresholds, annual income growth, end-month payments capped at amount owed. No daily interest, simultaneous undergraduate/postgraduate debt, payroll rounding, future thresholds, rate changes or cancellation eligibility determination.
Worked example
With a £30,000 balance, £25,000 repayment income on Plan 5, zero interest and 10 years remaining, required repayments are zero under a fixed £25,000 threshold. £100 monthly voluntary payments cost £12,000 and leave £18,000 at the entered cancellation date.
- Extra total cash paid: overpayment minus baseline
- £12,000.00
- Baseline total repayments before entered cancellation
- £0.00
- Overpayment-scenario total repayments
- £12,000.00
- Baseline projected balance at cancellation
- £30,000.00
Official sources and review
Reviewed against the sources below on 2026-10-06. Rates are held in versioned rule modules. Versioned rules, official source review and year-specific calculation tests.
- GOV.UK: Student-loan repayment amounts ↗
Plan-based earnings deductions, postgraduate repayment and payroll-period limitations.
- HMRC: Rates and thresholds 2026 to 2027 ↗
Regional PAYE bands, Category A NI, student-loan plans and current minimum wage.
- GOV.UK: student-loan cancellation ↗
Cancellation conditions depend on loan plan and dates. User supplies remaining years; no eligibility prediction.
Common questions
Can overpaying increase total cash paid?
Yes. If income-linked repayments would leave debt to be cancelled, voluntary payments can replace an amount you might never otherwise repay.
Does the tool choose my cancellation date?
No. Plan, borrowing dates and eligibility determine that date. Enter the remaining years after checking the official rules.
Are future interest rates or thresholds forecast?
No. The entered APR and 2026/27 thresholds remain fixed in this illustration. Real repayments can differ materially.