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Plan 2 + Postgrad student loan calculator (UK 2026/27)

The most common multi-plan combination for UK graduates with a Master's. Plan 2 takes 9% above £29,385; Postgrad takes 6% above £21,000; combined rate 15% above £29,385. Single calculator pre-configured for this exact combo.

Reviewed 4 May 2026 · 2026/27 rates verified
Plans you hold

Multiple undergrad plans → HMRC takes ONE 9% deduction at the lowest threshold (Student Loans Company allocates internally). Postgrad is separate at 6%.

Tax year

Plans 1, 2, 4 thresholds rose for 2026-27 (annual indexation); Plan 5 + Postgrad frozen.

Annual student loan repayment

£2,095

£175/month equivalent · 9% undergrad + 6% postgrad combined

Show full breakdown

Where the maths goes

Annual income£40,000.00
Undergrad thresholdLowest threshold of plan2£29,385.00
Income above undergrad threshold£10,615.00
Undergrad repayment @ 9.0%9% on income above the threshold£955.35
Postgrad threshold£21,000.00
Income above postgrad threshold£19,000.00
Postgrad repayment @ 6.0%Separate 6% — added to undergrad if both held£1,140.00
Total annual repayment£2,095.35
Monthly equivalentHow it actually shows up on your payslip — divided by 12£174.61

Sensitivity: repayment at different incomes

Same plan set (plan2 + postgrad). Useful for planning raises, day-rate increases, or contract renewals — your SL repayment grows linearly above the threshold.

IncomeAnnual SLMonthly
£25,000£240£20
£30,000£595£50
£40,000£2,095£175
£50,000£3,595£300
£60,000£5,095£425
£80,000£8,095£675
£100,000£11,095£925

The maths in 60 seconds

Plan 2 + Postgrad is the dominant multi-plan combination for UK graduates born after 1990 who took a Master's degree. Plan 2 covers the undergraduate loan from September 2012 to July 2023 starts, repaid at 9% of income above £29,385 in 2026/27. Postgrad covers Master's and PhD loans from August 2016 onwards, repaid at 6% of income above £21,000 (frozen).

The two plans run independently, so your payslip shows both deductions separately. The combined rate above the higher threshold (£29,385) is 15%, which sits on top of income tax (20% basic, 40% higher) and employee NI (8% basic, 2% above UEL). For a higher-rate Plan 2 + Postgrad holder the combined marginal rate on each extra £1 of employment income reaches 57% (40% IT + 2% NI + 15% SL).

Worked example at £40,000 income

Take a contractor with £40,000 of total taxable income (a common figure for first-year contractors and recent graduates).

  • Plan 2: 9% × (£40,000 − £29,385) = 9% × £10,615 = £955/year
  • Postgrad: 6% × (£40,000 − £21,000) = 6% × £19,000 = £1,140/year
  • Combined: £2,095/year, or about £175/month

For someone in their late 20s who's also paying mortgage, pension, and council tax, that's a material drag on take-home. Worth modelling alongside your salary-sacrifice pension decisions because each £1 of sacrifice saves 15p of student loan repayment plus the income tax + NI saving.

Combined repayment at common incomes

IncomePlan 2 (9% above £29,385)Postgrad (6% above £21,000)CombinedCombined / month
£25,000£0£240£240£20
£30,000£55£540£595£50
£40,000£955£1,140£2,095£175
£50,000£1,855£1,740£3,595£300
£75,000£4,105£3,240£7,345£612
£100,000£6,355£4,740£11,095£924

Note that at £100k of income the combined deduction reaches £11,095/year, almost £1,000/month. Plus this income is in PA-taper territory (£100k+ tapers your personal allowance by £1 per £2 of income), so the actual marginal rate on each extra £1 of employment income at this level is around 67% combining IT + NI + SL + the lost PA.

Frequently asked questions

Why does Plan 2 + Postgrad add 15% above £29,385?
Both plans run independently and stack additively. Plan 2 takes 9% of every £1 above £29,385. Postgrad takes 6% of every £1 above £21,000. By the time your income clears the higher threshold (£29,385), both plans are already deducting, so the combined marginal rate is 9% + 6% = 15%. Below £29,385 only Postgrad is active (between £21,000 and £29,385 you pay 6%); below £21,000 neither plan deducts.
I have £30k of dividends from my Ltd plus £12,570 salary, am I above the threshold?
Yes. Student loan repayments use total taxable income, not just employment income. Dividends count. Salary £12,570 + dividends £30,000 = £42,570 total income. Plan 2 deduction: 9% × (£42,570 − £29,385) = £1,187. Postgrad deduction: 6% × (£42,570 − £21,000) = £1,294. Combined £2,481/year, settled via your self-assessment if you're a Ltd director rather than via PAYE.
If I'm on PAYE / umbrella, how is this collected?
Direct from your payslip. When you join an umbrella or start a new PAYE job, you complete an SL1 form indicating which plans you hold. The umbrella or employer applies BOTH the Plan 2 and Postgrad deductions to each pay period. You'll see two student loan lines on your payslip (or sometimes one combined line with a breakdown). The HMRC multi-plan rule for two-undergrad-plan combinations doesn't apply here because Postgrad isn't an undergrad plan; it's a separate scheme.
Does salary sacrifice help?
Yes, this is one of the strongest cases for salary sacrifice. Sacrificing £5,000 of salary into pension reduces both Plan 2 and Postgrad's repayment base by £5,000, saving 15% × £5,000 = £750/year of student loan deduction on top of the income tax + NI savings. For Plan 2 + Postgrad holders specifically, this is on top of the standard salary-sacrifice savings, making the multiplier higher than for single-plan holders. See /calculator/salary-sacrifice-pension for the full mechanics.
Should I overpay either loan?
Postgrad first if at all. Postgrad carries RPI + 3% interest (the highest of any UK student loan plan), so overpayment can clear it before write-off and save the high interest. Plan 2 has a sliding-scale interest (RPI for low earners up to RPI + 3% for high earners) and 30 years to write-off, so overpayment rarely pays off in expected value. If you have spare cash and both loans, prioritise Postgrad. The standard MoneySavingExpert guidance applies (mse.me/student-finance) and is worth running for your specific case.
What happens when I clear one but not the other?
The deduction shrinks accordingly. If you clear Postgrad first (more likely given smaller balance and faster overpayment-clear), you'll keep paying 9% above £29,385 for Plan 2 alone until that's cleared or written off at the 30-year mark. The Student Loans Company tracks each plan's balance separately and notifies HMRC when one is finished. Your payslip drops to a single Plan 2 deduction at that point.

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Reviewed: 4 May 2026 · See how we calculate · not financial advice.