NZ Student Loan Repayment Calculator
NZ student loans are repaid at 12% of every dollar earned above the repayment threshold ($24,000/year for NZ-based borrowers). This calculator shows your repayment timeline with optional extra payments.
How this calculation works
Mandatory repayments = 12% × (annual income − $24,000). The repayment threshold is $24,000/year for NZ-based borrowers (about $461/week). NZ-based borrowers pay 0% interest (as long as they remain NZ-based). Overseas-based borrowers pay 2.8–3.9% interest depending on the period overseas, and have different repayment obligations based on their balance.
Sources
- IRD — Student loan repayments: ird.govt.nz/student-loans
- Repayment threshold: $24,000/year (NZ-based), updated annually
- Interest rates for overseas-based borrowers: ird.govt.nz/student-loans/interest-rates
When to use this
- — Estimating how much of your pay goes to student loan each month
- — Modelling how long until you're debt-free at your current income
- — Seeing the impact of making extra voluntary payments
- — Budgeting for mortgage affordability when you have a student loan
Important limitations
- — Assumes constant income and threshold — both may change
- — NZ-based interest rate is 0% while you stay in NZ; if you go overseas, interest and repayment rules change
- — End-of-year square-up may differ from PAYE deductions
- — Does not account for inflation adjustments to the repayment threshold
Common questions
Will my student loan affect my mortgage application?
Yes. Banks treat student loan repayments as a committed expense in their serviceability assessment. Even though it's 0% interest, the mandatory deduction reduces your available income. Use the affordability calculator to see the impact.
Should I make extra payments or save for a house deposit?
Since NZ-based student loans are interest-free, there's no financial urgency to repay faster. Most advisers recommend prioritising your house deposit. However, reducing your loan balance reduces the ongoing deduction from your pay, which may help with mortgage serviceability.
What happens if I move overseas?
Your loan becomes interest-bearing (2.8–3.9%) and you'll have different repayment obligations based on your balance. IRD will contact you. Repayments are based on your total balance, not your overseas income.
Next step
Turn these numbers into a plan.
FHBG can record your planning context and match you with resources — no obligation, no spam.
Last reviewed: 2026-07-23. Information only — not financial advice. Use these estimates to prepare better questions before speaking with a lender, lawyer, or regulated adviser.