Plan 2 repayments for 2026/27, your income linked interest and an overpayment check.
| Projection | Total repaid | Outcome |
|---|
Plan 2 threshold for 2026/27: £29,385 a year (£2,448.75 a month). Interest runs from the base rate at £29,385 or less up to 6% at £52,885 or more. The projection keeps the threshold and rates fixed, so it is an estimate, not financial advice.
Most graduates from England and Wales who started university between 2012 and 2023 are on Plan 2, and the big question is rarely the monthly payment, it is whether the loan will ever be paid off. This student loan Plan 2 calculator uses the 2026/27 threshold and the GOV.UK Plan 2 interest rules to show what you repay, the interest rate at your salary and whether overpaying would save you money or cost you more.
Quick answer: A student loan Plan 2 calculator takes 9% of income above £29,385 a year in 2026/27, or £2,448.75 a month. On a £40,000 salary that is 9% of £10,615, which is £955.35 a year or £79.61 a month, and any balance left 30 years after repayments were first due is written off.
In This Guide
What Is a Plan 2 Student Loan?
Plan 2 covers undergraduate courses started between 1 September 2012 and 31 July 2023 by students from England or Wales. You repay 9% of income above £29,385 a year, which is £2,448.75 a month through payroll. On a £40,000 salary that is 9% of £10,615, or £955.35 a year and £79.61 a month.
Interest is linked to income. At £29,385 or less you pay the base rate, currently 4.1%. Between £29,386 and £52,884 the rate rises on a sliding scale, and from £52,885 it reaches the 6% cap. Anything left 30 years after the April you were first due to repay is written off.
How Do You Use the Student Loan Plan 2 Calculator?
Step 1: Enter Your Salary
Type your gross yearly pay and an expected pay rise, because salary growth matters on Plan 2 as higher pay increases both your repayments and your interest rate over time. Type your gross yearly pay and an expected pay rise. Salary growth matters on Plan 2, because higher pay increases both your repayments and your interest rate over time.
Step 2: Add Your Balance and Start Year
Enter your balance, the base interest rate and the April you were first due to repay. The calculator sets the write off date 30 years later and applies the income linked rate each year.
Step 3: Try an Overpayment
Add a monthly amount you could pay on top. The loan calculator works on fixed repayments instead, so it shows how a normal debt would behave, which is useful for seeing why Plan 2 is so different.
Step 4: Compare the Results
The table compares your projected total repaid with and without the overpayment. If overpaying costs more overall, putting that money aside may work better, and the compound interest calculator shows how the same monthly sum could grow in savings over the same period.
How Much Will You Repay on Plan 2 in 2026/27?
| Salary | Yearly repayment | Monthly repayment |
|---|---|---|
| £28,000 | £0.00 | £0.00 |
| £35,000 | £505.35 | £42.11 |
| £40,000 | £955.35 | £79.61 |
| £50,000 | £1,855.35 | £154.61 |
| £60,000 | £2,755.35 | £229.61 |
On Plan 2 in 2026/27, a £35,000 salary repays £42.11 a month, £40,000 repays £79.61 and £50,000 repays £154.61, while £28,000 repays nothing. Many Plan 2 borrowers will never clear their balance, so extra payments only make sense if your projection shows you will repay in full before write off. You can still make voluntary payments at any time, and the GOV.UK guide to extra repayments explains how to pay the Student Loans Company directly, though it is worth checking the numbers first.
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How we checked this tool: the Tools Veria Editorial Team built this tool by hand, checked it against the official rules or published standards where they apply, and tested it against worked examples. Results are estimates for planning, not personal financial or tax advice. Read our editorial policy and disclaimer, or report an error.
Frequently Asked Questions
What is the Plan 2 threshold for 2026/27?
The Plan 2 threshold is £29,385 a year, which is £2,448.75 a month or £565.09 a week.
How much do I repay on Plan 2?
You repay 9% of your income above £29,385. On a £40,000 salary that is £79.61 a month.
What interest rate is charged on Plan 2?
After you leave your course, the rate depends on income: the base rate at £29,385 or less, rising to a 6% cap at £52,885 or more.
When is a Plan 2 loan written off?
30 years after the April you were first due to repay. Any balance left then is cancelled.
Is it worth overpaying a Plan 2 student loan?
Usually only if you are on track to clear it before write off. If part of the balance would be cancelled, overpaying can increase what you pay in total.
Does Plan 2 affect my credit score?
No. Student loans do not appear on your credit file, although lenders may consider the repayments when assessing affordability.