Plan 5 Write-Off Results
Student Loan Plan 5 Write Off Time Calculator
What This Calculator Does and Why It Matters
Plan 5 is the repayment plan for students in England who started university from August 2023 onwards. It comes with a 40-year write-off period, a lower repayment threshold, and a higher interest rate tied to RPI. For most borrowers, the central question is not “will I pay this off” but rather “how much will I actually pay before it gets written off?”
This free Student Loan Plan 5 Write Off Time Calculator lets you enter your loan balance, income, expected earnings growth, and repayment details to project your total repayment, how much gets cancelled at the end, and whether your loan might be paid off early. It is one of the most practically useful tools for Plan 5 borrowers who want to plan their financial future clearly.
According to the UK Government’s official guidance, Plan 5 repayments are 9% of income above the threshold, which is set at £25,000 for the 2023/24 tax year and will rise with average earnings in future years.
How to Use This Calculator
Step-by-Step Instructions
- Enter your current or projected loan balance at graduation in the first field, in pounds.
- Enter the annual interest rate your loan currently charges — check your Student Loans Company account for the exact figure.
- Enter your current or projected annual gross income before tax.
- The repayment threshold is pre-filled at £25,000 — update it if the threshold has changed.
- The repayment rate is pre-filled at 9% as per Plan 5 rules — leave this unless told otherwise.
- Enter your expected annual income growth rate as a percentage to model career progression.
- The write-off period is pre-filled at 40 years — this is the current Plan 5 rule.
- Click Calculate to see your total repayment, write-off amount, and projected outcome.
The Formula Explained
Breaking Down the Formula
Each year, interest accrues on your outstanding balance at the stated rate. Then, your annual repayment is calculated as 9% of your income above the £25,000 threshold. Your balance reduces by this payment. The next year’s income is increased by your assumed growth rate, and this repeats for up to 40 years. If at any point your annual payment covers the remaining balance, the loan is paid off early. If the loan reaches the 40-year mark with a balance remaining, that amount is written off.
Understanding how interest stacks up over this period is also explained well using our Student Loan Interest Capitalization Calculator, which shows the compound effect of unpaid interest on your balance over time.
Example Calculation with Real Numbers
A graduate starts with a £45,000 balance at 7.3% interest and earns £30,000 per year, with income growing at 3% annually. In year one, they repay 9% of £5,000 above the threshold, which is £450. Meanwhile, interest adds £3,285 to the balance, so it barely falls. After 40 years of this pattern at moderate income growth, they will have repaid roughly £30,000 to £50,000 in total but may still have a significant balance written off — making the write-off the most financially relevant event for this borrower.
When Would You Use This
Real Life Use Cases
This calculator is most useful when you are planning your finances around a Plan 5 loan and want to know whether it makes financial sense to make voluntary overpayments, or whether it is better to treat the loan like a graduate tax and invest the difference elsewhere. It is also helpful when comparing career paths — a higher-paying career might actually mean you pay more in total even though the loan clears faster.
If you are also dealing with a parent or partner’s loan situation, our Student Loan 40 Year Write-Off Payout Calculator provides a useful parallel view of the same write-off mechanics.
Specific Example Scenario
A nurse graduates with £52,000 in Plan 5 debt and works in the NHS earning £32,000 starting salary, rising by 2.5% a year. The calculator projects she will repay around £38,000 in total over 40 years, with roughly £95,000 written off at the end. In her case, making voluntary overpayments would be a poor financial decision because she would never recoup the extra cash she put in — her loan will be written off regardless of whether she overpays.
Tips for Getting Accurate Results
Use Your Student Loans Company Balance
Log into your Student Loans Company account online to get the exact current balance and interest rate. Using an estimate can skew your write-off projection significantly, especially on larger balances where even a 0.5% interest rate difference changes the outcome noticeably.
Be Conservative with Income Growth
It is tempting to assume high salary growth, but most UK earnings grow by 2% to 4% annually on average over a career. Using an optimistic 6% or 7% growth rate may show the loan being paid off early when realistically it will not be. A more cautious projection gives you a safer financial planning baseline.
Remember the Threshold Changes Each Year
The Plan 5 repayment threshold is linked to average earnings and will increase over time. This means your repayments as a share of income may not rise as fast as you expect in real terms. For the most current threshold, always check the UK Government website before making major financial decisions based on this calculator.
Frequently Asked Questions
What is the Plan 5 student loan write-off period?
Plan 5 student loans in England are written off 40 years after you first became eligible to repay. This is longer than Plan 2’s 30-year write-off and means more borrowers will be making repayments for a larger portion of their working life.
Who is on Plan 5?
Plan 5 applies to students in England who started an undergraduate course on or after August 1, 2023. Scottish, Welsh, and Northern Irish students are on different repayment plans with different rules and thresholds.
What interest rate does Plan 5 charge?
Plan 5 charges interest at the RPI (Retail Price Index) rate. This is different from Plan 2, which could charge RPI plus 3%. The rate changes annually and is set by the government. Check your Student Loans Company account for the current rate applied to your loan.
Is it worth making voluntary overpayments on a Plan 5 loan?
For most borrowers who are unlikely to clear the loan before write-off, voluntary overpayments are generally not financially worthwhile. Money paid voluntarily is not refunded if the loan is later written off anyway. Only high earners who are likely to fully repay the loan benefit from making extra payments.
What happens to my Plan 5 loan if I never fully repay it?
After 40 years from the April after you leave or finish your course, any remaining balance is written off. You do not owe anything more, and the write-off does not affect your credit score. It simply disappears from your record.
Can I check my exact write-off date?
Yes. Log into your Student Loans Company account and your write-off date will be calculated based on the year you became eligible to repay. The write-off is fixed to a calendar year, not a specific repayment milestone.
Does income growth significantly affect how much I repay in total?
Yes, significantly. A borrower who earns a high salary for most of their career might repay the full loan and more. A borrower on a modest income might repay only a fraction of the original balance before write-off. This calculator lets you model both extremes to see where you fall.
Is Plan 5 better or worse than Plan 2?
It depends on your earnings. Plan 5 has a lower repayment threshold and a longer write-off period, meaning more people repay more over a longer time. However, the interest rate is lower (RPI only vs RPI+3%). Higher earners may find Plan 5 costs more in total; lower to mid earners may end up in a similar or slightly better position.
Conclusion
Plan 5 is a fundamentally different kind of student loan from anything that came before it. For many borrowers, it functions more like a long-term income-contingent tax than a traditional debt. Understanding when and how much gets written off — and how much you will actually repay in between — is critical to making smart financial decisions about overpayments, investments, and career planning.
Use this free calculator to model your own scenario, compare different income growth paths, and make confident, informed choices about your Plan 5 student loan repayment journey.