Student loan repayment on £40,000
On a £40,000 salary you repay £79.61 a month on a Plan 2 student loan, or £955 a year.
Repayments on £40,000 by plan
| Plan | Threshold | Per year | Per month | Per week |
|---|---|---|---|---|
| Plan 1 | £26,900 | £1,179 | £98.25 | £22.67 |
| Plan 2 | £29,385 | £955 | £79.61 | £18.37 |
| Plan 4 (Scotland) | £33,795 | £558 | £46.54 | £10.74 |
| Plan 5 | £25,000 | £1,350 | £112.50 | £25.96 |
| Postgraduate Loan | £21,000 | £1,140 | £95.00 | £21.92 |
What it means at £40,000
- You repay 9% of pay above the threshold for your plan. On Plan 2 that is 9% of £10,615.
- With a Plan 2 loan and a Postgraduate Loan you would repay £174.61 a month in total.
- After income tax and National Insurance, take-home pay on £40,000 is £32,320 a year. Take off a Plan 2 repayment and it is £31,364, or £2,613.69 a month. See £40,000 after tax for the full breakdown.
- Repayments are worked out on each payslip, so a month with overtime or a bonus can mean a bigger deduction. Any balance left is usually written off after 25 to 40 years, depending on the plan.
Check your own figures
The calculator is set to £40,000. Pick your plan and tick Postgraduate Loan if you have one.
| Loan | Threshold | Rate | Per year | Per month |
|---|
Salaries near £40,000
| Salary | Plan 2 a month | Plan 5 a month |
|---|---|---|
| £37,000 | £57.11 | £90.00 |
| £38,000 | £64.61 | £97.50 |
| £39,000 | £72.11 | £105.00 |
| £40,000 | £79.61 | £112.50 |
| £41,000 | £87.11 | £120.00 |
| £42,000 | £94.61 | £127.50 |
| £43,000 | £102.11 | £135.00 |
Student loan repayments on all salaries
Assumptions
Annual salary paid evenly through PAYE, using 2026/27 thresholds. Plan 1 covers England or Wales before September 2012 and Northern Ireland, Plan 2 England or Wales from 2012 to July 2023, Plan 4 Scotland and Plan 5 England from August 2023. Self-employed repayments are collected through Self Assessment instead.
Frequently asked questions
How much student loan do I repay on £40,000?
On Plan 2 it is £79.61 a month (£955 a year) in 2026/27. On Plan 5 it is £112.50 a month, and on Plan 1 £98.25 a month.
How much is a Postgraduate Loan repayment on £40,000?
£95.00 a month (£1,140 a year), at 6% of income above £21,000. It is taken on top of any Plan 1, 2, 4 or 5 repayment.
Do Scottish graduates on £40,000 repay student loan?
Yes. Plan 4 repayments are £46.54 a month on £40,000, at 9% of income above £33,795.