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Student Loan Repayment Calculator

Work out your student loan repayments at 12% on income over $24,128. See how long until your loan is paid off and how extra payments can help.

By Konstantin IakovlevPublished 28 March 2026Last reviewed
Updated 2026-27 FYData stays on your deviceIRD sourced data

About this calculator

This calculator implements student loan thresholds and 12% repayment rate from Inland Revenue (IRD). Last consulted 1 April 2026. Verify the figures yourself by following the link.

Current NZ student loan rates

FY 2026-27 (threshold reviewed annually)
  • •Repayment rate: 12% above threshold
  • •Annual repayment threshold: $24,128
  • •Weekly threshold: $464
  • •Interest rate (NZ-based): 0%
  • •Interest rate (overseas): ~4% (varies)

Source: IRD — Student loans

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available IRD data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

How NZ student loan repayments are calculated

Student loan deductions are 12% of income above the annual repayment threshold ($24,128 for the 2026-27 year). Interest is 0% if you live in NZ, ~4% if overseas.

  1. 1

    Determine your repayment threshold

    Annual threshold = $24,128  |  Weekly = $464  |  Fortnightly = $928  |  Monthly = $2,011

    IRD splits the annual threshold across pay periods so deductions match the pay cycle.

  2. 2

    Calculate deductible income

    Deductible = max(0, gross_pay − threshold_for_period)

    Income at or below the threshold = $0 repayment for that period.

  3. 3

    Apply the 12% repayment rate

    Repayment = deductible_income × 12%

    Rate has been 12% since 1 April 2013 — no change in 2026-27.

  4. 4

    Add overseas interest if applicable

    Interest (overseas only) = remaining_balance × ~4.00% / year

    NZ-based borrowers pay 0% interest. Move overseas for 184+ days = interest accrues from day 1.

Worked example

Inputs: $60,000 annual income, $25k loan balance, NZ-based

Result: Deductible: $60,000 − $24,128 = $35,872. Repayment: $35,872 × 12% = $4,305/yr (~$83/week). 0% interest = full amount reduces principal.

Frequently Asked Questions

How much do I repay on my student loan?
If you're working in New Zealand, you repay 12% of every dollar you earn over the annual repayment threshold of $24,128 (before tax) — equivalent to $464 per week. This deduction is automatic and collected by IRD through the PAYE system, just like income tax. For example, if you earn $50,000 per year, your repayment obligation is 12% * ($50,000 - $24,128) = 12% * $25,872 = $3,104.64 per year, or about $59.71 per week. There is no minimum repayment required if you earn below the threshold. Extra voluntary repayments can be made at any time to pay off your loan faster, and IRD may offer a 10% bonus on voluntary payments of $500 or more. Source: IRD — Student Loan Repayments (ird.govt.nz/student-loans).
Is there interest on NZ student loans?
No interest is charged on student loans while you are living in New Zealand — this has been the case since 2006 when the interest-free policy was introduced. However, if you move overseas for more than 183 days in a 12-month period, interest begins accruing on your loan balance at a rate that is reviewed annually (around 2% annually for overseas borrowers as a loan balance fee under current settings). You are still required to make repayments while overseas, but these must be made directly to IRD rather than through the PAYE system. The loan is managed by Inland Revenue (IRD), and your balance is shown in your myIR account. Failing to meet overseas repayment obligations can result in penalties and affect your ability to return to New Zealand without arrest. Source: IRD — Student Loans Overseas (ird.govt.nz/student-loans).
Can I make extra repayments on my NZ student loan?
Yes, you can make voluntary extra repayments to your student loan at any time through myIR. NZ-based borrowers do not earn interest reduction on early repayment (the loan is interest-free in NZ), so the only benefit of paying extra is becoming debt-free sooner. For overseas-based borrowers, who pay 4% interest, extra repayments can save thousands. You can also apply for a 10% bonus on voluntary repayments of $500+ if you are an overseas-based borrower making your first voluntary payment after returning to NZ. Source: IRD — Student Loans.

Estimates how long it will take to repay an NZ student loan and the total amount repaid, given your income and any voluntary extra repayments. Compulsory deductions are 12% of income above the $24,128 annual repayment threshold.

How this calculator works

Compulsory repayment = 12% x (gross income - $24,128/year). Interest on NZ student loans is 0% for NZ-based borrowers in good standing. For overseas borrowers, a 2% annual loan balance fee applies. Because there is no interest for NZ-based borrowers, every repayment directly reduces the balance.

NZ Student Loan Key Facts

Interest rate (NZ-based borrower)0%
Interest/fee (overseas borrower)2% of loan balance per year
Compulsory repayment rate12% of income above threshold
Repayment threshold$24,128/year ($464/week)
Average NZ student loan balance~$20,000 at graduation

0% interest means every dollar repaid reduces the loan balance directly — extra voluntary repayments are highly effective.

Worked Examples

$30,000 loan, annual income $55,000 — compulsory repayments only

Loan cleared in approximately 8.1 years.

  1. Annual repayment: ($55,000 - $24,128) x 12% = $30,872 x 0.12 = $3,705/year
  2. Years to repay: $30,000 / $3,705 = 8.1 years
  3. Total paid: $30,000 (no interest for NZ-based borrowers)

Same loan and income, plus $50/week voluntary extra repayment

Loan cleared in approximately 4.8 years.

  1. Compulsory repayment: $3,705/year
  2. Voluntary extra: $50 x 52 = $2,600/year
  3. Total annual repayment: $3,705 + $2,600 = $6,305/year
  4. Years to repay: $30,000 / $6,305 = 4.8 years

Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.

Last reviewed:

Official Sources

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