# Calculate your Student Finances today

Here at the Student Finance Calculator, we want to help you uncover the real cost of university repayments. Our powerful tool takes into account factors like income, wage growth, inflation, and interest rates to help you calculate your monthly student loan payments. Simply input 4 values in the below form and the calculator will do the rest.

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## Looking to take your calculations a bit further?

### Extra monthly payments

If you find extra cash at the end of each month, consider making additional monthly payments. This mirrors setting up monthly direct debit payments to supplement your mandatory repayments. However, it's important to note that this may or may not decrease your repayment amount.

### Extra lump sum

Perhaps you've received a bonus or inherited some money? Why not consider making an initial lump sum payment to immediately reduce your debt? Similar to the extra monthly payments, this approach may or may not decrease your overall repayment amount.

### Repayment threshold

The repayment threshold is preset based on your repayment plan, which the calculator can determine from your start year. This threshold, set by the government and adjusted for inflation annually, can be modified in the calculator to illustrate its impact on your monthly repayments. Generally, a higher threshold results in smaller monthly repayments.

### Loan interest rate

The loan interest rate, also determined by the government according to your plan, can be adjusted in the calculator if you believe a different rate would be more appropriate. It's worth noting that this rate reverts to the historical average.

### Wage growth %

Predicting wage growth can be challenging. However, certain professions may have higher earning potential. Experiment with different wage growth scenarios to understand their impact on future repayments. You can cross-reference this with your output table to gauge the feasibility of projected income, factoring in inflation for a realistic assessment.

### Retail Price Index %

The Retail Price Index (RPI%) reflects the annual increase in the cost of goods. The government typically utilises this index to adjust the repayment threshold to maintain balance. If inflation is at 2%, the threshold increases by 2%. However, this relationship may break down if the threshold remains static while RPI% and wages increase. This can lead to borrowers paying more towards their loans relative to their increased earnings, as the threshold fails to keep pace. The calculator allows you to experiment with the rate of threshold increases to observe how it impacts your monthly payments.

### Pension contributions %

In the UK, contributing to your pension can impact student loan repayments by influencing taxable income. Contributing through a salary sacrifice scheme reduces your taxable income, thereby lowering your student loan repayments. For further information, we recommend reading our article on Student Finance and Pensions and factoring this into your calculations, as it can significantly affect your results.

### Take a look at our articles

Why not explore our articles on Student Finance Guide UK 2024 and Paying Student Finance Back Early.

## Our Assumptions

• Since this loan spans many years, estimating student loan repayment amounts is necessary. While we can approximate your monthly repayments, the actual amounts may vary based on your circumstances.

• In our calculations interest accrues on your loan every month, when it accumulates daily. To ensure smooth functionality, we have simplified the process, which may lead to a potential variance of approximately plus or minus 2%.

• It is assumed that you will remain continuously employed for the 30 years following graduation, with steady salary increases. If you retire before completing the 30 years, there is a considerable possibility that you will repay a substantially lower amount.

• Repayments begin in April after you leave university and continue until your loan is paid or written off, typically after 25 to 40 years.

• If you are employed in the UK and are on a company payroll, repayments are automatically deducted through PAYE (Pay As You Earn). If you are self-employed or have multiple jobs, the frequency you pay back might change.