WageCalculator

Student Loan Repayment Tool — Updated for 2025–2026

HECS-HELP Repayment Calculator and Payoff Planner

Estimate HECS repayments and compare payoff strategies in one place.

How the HECS-HELP Calculator Works

Why Plan Your HECS Payoff?

Your HECS-HELP debt — Australia's student loan system — grows through annual indexation applied each 1 June based on CPI. The longer your balance remains, the more indexation adds. A voluntary repayment made before 1 June reduces the balance that gets indexed, which means less growth. This HECS debt calculator lets you model that effect alongside income growth and compulsory repayment schedules, so you can decide whether paying extra is worth it for your situation.

How It Works

  1. Enter your repayment income and balance: Start with your annual income and the current HECS-HELP balance from myGov or the ATO.
  2. Set indexation and income growth: Choose the annual indexation rate and income growth assumption to test different scenarios.
  3. Add an extra repayment strategy: Model a one-off lump sum, a recurring yearly extra repayment, or both.
  4. Compare paths: Review years saved, total indexation avoided, and the projected balance trajectory for your current path vs. your strategy.

What this tool includes

Annual repayment estimate

We calculate your first-year compulsory repayment using the selected financial year’s current HELP thresholds and formulas.

Strategy comparison

The calculator compares your current path with a strategy that can include income growth, a one-off repayment, and an extra annual repayment.

Indexation impact

Each year’s projection shows how indexation changes the balance and how much lower balance growth becomes when you reduce the debt earlier.

Policy held constant

We keep the selected year’s thresholds and formulas fixed across the projection so you can compare strategies without pretending to know future law changes.

What counts as repayment income

Repayment income is usually close to salary for straightforward PAYG employees, but it can be higher than base pay. Reportable fringe benefits, total net investment losses, reportable super contributions, and some exempt foreign employment income can all affect your final HELP repayment.

If you want a deeper explanation of how the ATO applies the rules, read the HECS/HELP repayment guide. If you want to see how HECS affects your overall tax position, use the tax return calculator or the main pay calculator.

Example payoff scenarios

Early career

Income near the threshold

When income is only modestly above the repayment threshold, indexation can do a lot of the work. This is where testing income growth assumptions becomes useful.

Mid career

Large balance, steady income

A one-off repayment may not always save many years, but it can still reduce total indexation materially by shrinking the balance that gets indexed each June.

High income

Fast payoff, smaller strategy gains

Higher earners often clear HELP debt quickly through compulsory repayments alone. In those cases, extra repayments usually matter more for lower indexation than timeline changes.

Frequently Asked Questions

How is the compulsory HECS repayment calculated?

The calculator applies the selected financial year's HELP repayment rules to your annual repayment income. For 2025-26, repayments start at $67,000 and follow the new marginal formula, with high earners capped at 10% of total repayment income.

What counts as repayment income?

Repayment income is broader than just salary. In addition to taxable income, the ATO can include reportable fringe benefits, total net investment losses, reportable super contributions, and some exempt foreign employment income. Gross salary is a useful estimate, but it is not always exact.

Does this projection include annual indexation?

Yes. The projection applies the chosen annual indexation rate each year after any extra repayment made before 1 June, then subtracts the compulsory repayment estimated for that year. This keeps the model aligned with how balance growth is usually experienced in practice.

Why might extra repayments save indexation but not many years?

If your compulsory repayment is already high enough to clear the debt quickly, an extra repayment may reduce total indexation without materially changing the payoff date. The savings still matter, but they show up more in lower balance growth than in years saved.

Does this forecast future policy changes?

No. The calculator keeps the selected year's threshold table and repayment formula constant across the projection. It is designed for planning, not for predicting future ATO rule changes or future indexation policy.

How does employer withholding relate to my final HECS repayment?

Your employer withholds an estimate through PAYG if you declare that you have a HECS-HELP debt, but the final compulsory amount is reconciled in your tax return based on your actual full-year repayment income. That is why bonuses, multiple jobs, and other income can change the result at tax time.

What is the HECS-HELP repayment threshold for 2025-26?

For 2025-26, the HECS-HELP compulsory repayment threshold is $67,000. Below this income level, no compulsory repayment is required. Above it, repayments are calculated using the marginal-rate method — meaning you only pay the applicable rate on income within each repayment band, not a flat percentage on your entire income.

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