Student Loan Repayment Calculator 2025-2026

If you're earning above the repayment threshold in New Zealand, understanding how your student loan repayments work is essential for managing your finances. The good news is that calculating what you'll owe is straightforward once you know the key figures and rules. For the 2026 tax year, the annual repayment threshold sits at $24,128, and you'll repay 12% of every dollar earned above this amount^[1][2]. Whether you're employed, self-employed, or living overseas, this guide walks you through exactly how student loan repayments are calculated and provides practical tools to help you plan ahead.

Understanding the 2026 Student Loan Repayment Threshold

The repayment threshold determines when you start contributing to your student loan. For the 2026 tax year (1 April 2025 to 31 March 2026), the annual threshold remains at $24,128^[1]. This means if you earn below this amount, you won't make any student loan repayments at all.

The threshold breaks down into different pay periods, making it easy to understand what you'll repay regardless of how often you're paid^[3]:

• Weekly: $464
• Fortnightly: $928
• Every 4 weeks: $1,856
• Monthly: $2,010.66

Once you earn above these amounts, your employer automatically deducts 12% of the excess from your pay. This happens through your tax code if you've registered a student loan with Inland Revenue.

How to Calculate Your Student Loan Repayment

For Salaried and Wage Earners

If you're employed and earning a regular salary or wage, calculating your repayment is simple. Here's a practical example:

Example: $50,000 annual salary^[1]

• Annual income: $50,000
• Less the threshold: $24,128
• Income over threshold: $25,872
• Repayment rate: 12%
• Annual student loan repayment: $3,105
• Weekly deduction: approximately $59.71

Your employer will make these deductions automatically if you've registered your student loan with IRD and have the correct tax code (M SL or ME SL for those with student loans)^[3].

For a more precise weekly example, if you earn $600 per week^[3]:

• Weekly pay: $600
• Less weekly threshold: $464
• Income over threshold: $136
• Repayment rate: 12%
• Weekly repayment: $16.32

For Self-Employed People

If you're self-employed or have other income sources, the calculation is slightly different. You'll work out your repayment based on your adjusted net income (your income after deducting expenses)^[2].

Example: Mixed income scenario^[1]

• Salary income: $20,000
• Self-employed income: $15,000
• Total income: $35,000
• Less the threshold: $24,128
• Income over threshold: $10,872
• Annual student loan repayment: $1,305

Self-employed people typically settle their student loan repayments when they file their annual tax return, rather than having deductions made from regular pay^[2]. You'll be notified by Inland Revenue of the amount due and payment dates.

Interim Repayments: What You Need to Know

If your end-of-year student loan repayment was more than $1,000, you'll need to make interim repayments the following year^[2]. These are spread across three payments and are based on your previous year's repayment, plus 5%.

Example of interim repayments:^[2]

• Previous year's repayment: $2,300
• Plus 5%: $115
• Total for the year: $2,415
• Three equal payments: $805 each

The payment dates for the 2026 tax year are^[2]:

• 1 April – 31 July: Due 28 August
• 1 August – 30 November: Due 15 January
• 1 December – 31 March: Due 7 May

You can adjust your interim repayment amounts through your myIR account if you're confident your income will be significantly different from the previous year.

Living Overseas? Different Rules Apply

If you've moved abroad, your student loan repayment obligations change significantly. Rather than repaying based on your income, you'll repay based on your loan balance^[2].

Here's the breakdown of annual repayment obligations for overseas-based borrowers^[2]:

• Less than $1,000: Full balance
• $1,000 to $15,000: $1,000 annually ($500 per payment)
• $15,000 to $30,000: $2,000 annually ($1,000 per payment)
• $30,000 to $45,000: $3,000 annually ($1,500 per payment)
• $45,000 to $60,000: $4,000 annually ($2,000 per payment)
• Over $60,000: $5,000 annually ($2,500 per payment)

Payments are typically due on 31 March and 30 September each year. Inland Revenue will send you an annual assessment outlining your minimum repayment obligations^[2].

Using the Official Student Loan Repayment Calculator

Rather than doing manual calculations, Inland Revenue provides a free online student loan repayment calculator^[4]. This tool helps you estimate your loan repayment obligation, see how long it'll take to pay off your loan, and model scenarios where you make additional payments.

To use the calculator, you'll need^[4]:

• Your current student loan balance (available through your myIR account)
• Your estimated annual income
• Information about any additional payments you plan to make

The calculator is particularly useful for seeing how different income scenarios affect your repayment timeline and understanding the impact of making extra payments.

Making Extra Repayments

You're not locked into making only the minimum repayments. You can make extra payments at any time through your myIR account or by contacting Inland Revenue directly^[2]. Making additional repayments is a smart strategy if you want to reduce your loan balance faster and minimise the total interest you'll pay (especially if you're living overseas, where interest accrues).

Key Takeaways for Managing Your Student Loan

Understanding your student loan repayment obligations helps you budget more effectively and plan your financial future. Here's what to remember:

• The 2026 repayment threshold is $24,128 annually – you only repay on income above this amount
• The standard repayment rate is 12% of income over the threshold
• Salaried employees have repayments deducted automatically through their tax code
• Self-employed people settle repayments when filing their annual tax return
• Interim repayments apply if your previous year's repayment exceeded $1,000
• Different rules apply if you're living overseas – repayments are based on loan balance, not income
• You can make voluntary extra repayments at any time to pay off your loan faster
• Use Inland Revenue's free online calculator to model different scenarios

To get started, log into your myIR account to check your current loan balance and verify your tax code includes the 'SL' indicator if you're employed. If you're self-employed, make sure you've registered your student loan with IRD. And if you're considering a change in income or circumstances, use the official calculator to see how it might affect your repayment timeline.