HECS-HELP Repayment Calculator
Estimate your HECS-HELP student loan repayments based on the new 2025-26 marginal repayment rates and your income.
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 ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
Frequently Asked Questions
When do I start repaying my HECS-HELP debt?
How are HECS repayment rates calculated in 2025-26?
Is it worth paying off HECS early?
What is HECS-HELP Repayment?
HECS-HELP is the Australian government's income-contingent student loan scheme. You only start repaying when your income exceeds the compulsory repayment threshold.
How this calculator works
From 2025-26, HECS-HELP uses a marginal bracket system (similar to income tax) instead of flat rates. This means you only pay the higher rate on income above each threshold, not your entire income. The calculator applies each marginal rate to the relevant income band to calculate your total annual repayment. If you enter your debt balance, it estimates years to repay accounting for CPI indexation (approximately 3.4% per year).
New 2025-26 Marginal System vs Old Flat Rates
Before 2025-26, HECS repayments used flat percentage rates applied to your entire income once you crossed a threshold. This caused 'cliff' effects where earning $1 more could increase your repayment by thousands. The new marginal system works like income tax brackets — you only pay the higher rate on the portion of income within each band. This makes repayments fairer and more predictable.
How Repayment Income Is Calculated
Your HECS repayment income (RI) is not just your taxable income. The ATO calculates it as: taxable income + any total net investment loss (negative gearing losses) + reportable fringe benefits amounts + reportable super contributions + any exempt foreign employment income. This broader definition prevents people from reducing their visible income to avoid repayments.
How Indexation Works
Your HELP debt is indexed annually on 1 June to maintain its real value. Since 2023, indexation is capped at the lower of CPI or the Wage Price Index (WPI). For 2025, the indexation rate was approximately 3.4%. Indexation is not interest — it simply adjusts your debt for inflation. If you can make a voluntary repayment before 1 June, you reduce the balance that gets indexed.
Voluntary Repayments
You can make voluntary repayments at any time through the ATO. These are on top of your compulsory repayments. Voluntary repayments are not tax-deductible and no longer attract a bonus or discount (the 5% voluntary repayment bonus was removed in 2017). However, making a voluntary payment before 1 June each year reduces your balance before indexation is applied, saving you money in the long run.
2025-26 HECS-HELP Marginal Repayment Brackets
| $0 – $67,000 | Nil (below threshold) |
| $67,001 – $125,000 | 15 cents per $1 above $67,000 |
| $125,001 – $179,285 | $8,700 + 17 cents per $1 above $125,000 |
| $179,286 and above | 10% of total repayment income |
From 2025-26, HECS uses marginal rates — you only pay on income ABOVE $67,000, not your total income. This replaced the old flat-rate system.
Worked Examples
$80,000 repayment income
Annual HECS repayment: $1,950
- Income up to $67,000: no repayment (below threshold)
- Income from $67,001 to $80,000: $13,000 at 15% marginal rate
- Repayment = $13,000 × 0.15 = $1,950 per year
- That's $75/fortnight or $37.50/week deducted through PAYG
$150,000 repayment income
Annual HECS repayment: $12,950
- Income up to $67,000: no repayment
- Income $67,001 to $125,000: $58,000 × 15% = $8,700
- Income $125,001 to $150,000: $25,000 × 17% = $4,250
- Total repayment = $8,700 + $4,250 = $12,950 per year
$60,000 repayment income
Annual HECS repayment: $0 (below compulsory threshold)
- The minimum repayment threshold for 2025-26 is $67,000
- At $60,000, your income is below this threshold
- No compulsory repayment is required — your debt is only indexed for inflation
Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).
Official Sources
All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.
Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.