Taking home £25,000 a year
The salary where Plan 5 repayments begin — the first pound above changes the rate.
Before tax, as written in your contract
Percentage of your salary going into the pension, including any tax relief
Most workplace schemes. Your payslip shows the full contribution and a lower taxable pay.
Take-home pay
£1,709.97
per month · £20,520 per year · £394.61 per week
Effective rate
12.9%
On your next £100
27.0%
Reaches your bank
£68.00
| Gross salary | £25,000.00 |
|---|---|
| Pension contributionStill your money — it just moves to your pension | −£1,250.00 |
| Income TaxPersonal Allowance £12,570.00 | −£2,236.00 |
| National Insurance | −£994.40 |
| Take-home pay | £20,519.60 |
| 20.0% On £11,180 | £2,236.00 |
|---|
Where £25,000 sits
£1,900 more and you reach plan 1 student loan repayments start.
9% of everything above this, if you have this loan.
- ✓Income Tax starts at £12,570 — The first £12,570 is covered by the Personal Allowance.
- ✓Postgraduate Loan repayments start at £21,000 — 6% of everything above this, if you have this loan.
- ✓Plan 5 student loan repayments start at £25,000 — 9% of everything above this, if you have this loan.
Figures for the 2026/27 UK tax year. Rates last checked against HMRC on 2026-08-28. See every source.
How to check a £25,000 salary
This figure is not a round number chosen for convenience: it is the point where Plan 5 student loan repayments start. Anyone who began a course from September 2023 sits on that plan, so for a large share of people at this salary the deduction begins here and only here. Below it, nothing is taken. Above it, a percentage of every extra pound goes to repayment on top of tax and National Insurance. The take-home figure barely moves at the threshold itself — the repayment is charged on the amount above it, not on the whole salary — but the rate at which further pay rises are taxed does move, and that is the part worth understanding before negotiating.
- 1Confirm the salary, which is filled in for you.
- 2Select your student loan plan — if you started a course from September 2023, that is Plan 5.
- 3Compare the take-home figure with the plan set to none, to see exactly what the repayment costs you.
- 4Enter your pension percentage and arrangement if you contribute to one.
FAQ
Why does my repayment look so small at this salary?
Because student loan repayments are charged on the amount above the threshold, not on your whole salary. At exactly the threshold the repayment is nothing, and a little above it the repayment is a percentage of that small difference. It grows quickly as your salary rises, which is why the deduction feels sudden a year or two later.
Which plan am I on?
It follows when your course started, not when you borrowed. Plan 5 covers courses beginning September 2023 or later, Plan 2 covers England and Wales between 2012 and 2023, Plan 1 covers loans before September 2012, and Plan 4 is Scotland. Each has its own threshold, all of which are listed on this page.
Does a pension contribution reduce the repayment?
Only under salary sacrifice, which reduces your contractual salary itself. A normal net-pay or relief-at-source contribution does not: student loan repayments are worked out on gross pay before the pension comes off. The calculator asks which arrangement you are on because the answer changes the number.