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NZ student loan repayment calculator
See exactly what comes out of your pay for your student loan: 12% of everything you earn above the $24,128 threshold.
Compulsory repayments are 12% of income over the $24,128 annual threshold.
Enter your income to see your compulsory student-loan repayments, and what comes out of each pay.
How student loan repayments work in New Zealand
Once you're earning over the annual repayment threshold ($24,128), you repay 12 cents in every dollar above it. Earn under the threshold and nothing comes out. The threshold is set each tax year, so the exact figure shifts a little year to year, but the 12% rate has been steady for a long time.
For most people it's automatic. If you're on a salary or wage, your employer uses an "SL" tax code and deducts the repayment through PAYE, the same pipe your income tax goes through, so it just appears on your payslip. A second job uses an SL secondary code, so repayments come out of that too.
While you live in New Zealand the loan is interest-free, so every dollar repaid clears actual debt. Move overseas long-term and you become an overseas-based borrower: interest applies and repayments are based on your loan balance instead of your income. Either way, you can make voluntary repayments on top to clear the loan sooner.
Student loan questions, answered
- How much are student loan repayments in New Zealand?
- Compulsory repayments are 12% of every dollar you earn above the annual repayment threshold ($24,128 for the current tax year). Below the threshold, nothing is deducted.
- What is the student loan repayment threshold?
- $24,128 a year (about $464 a week). You repay 12 cents in every dollar earned above it, deducted from your pay through PAYE.
- Do I have to repay if I earn under the threshold?
- No compulsory repayment is required under the threshold. You can still make voluntary repayments to clear the loan faster and pay less over time.
- What if I'm overseas?
- Overseas-based borrowers have fixed repayment obligations based on their loan balance, not their income. These are different rules that this calculator doesn't cover. Check ird.govt.nz.
- How is my student loan repayment collected?
- If you're on a salary or wage, your employer deducts the 12% above the threshold automatically using an 'SL' tax code, the same way PAYE works. You don't have to do anything; it shows on your payslip each pay.
- Is my student loan interest-free?
- Yes, while you're based in New Zealand the loan is interest-free. If you move overseas for more than about six months you become an overseas-based borrower, and interest is charged, with repayments based on your loan balance rather than your income.
- What happens if I have a second job?
- Income from a second job uses an 'SL' secondary tax code, so repayments come out there too. If your combined income is under the threshold you may over-pay, and can ask IRD for a special deduction rate or a refund.
Plan around the deduction.
KeaBudgetis the free budget app for Kiwi bank accounts, so the student-loan deduction is one less surprise on payday. It's live now, and free.
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NZ Take-home Pay Calculator →KiwiSaver Max-Out Calculator →Related reading: How to budget in New Zealand: a simple guide