HECS-HELP Repayment Calculator Australia โ FY 2025-26
Calculate your compulsory HECS-HELP repayment under the new marginal system. Compare savings vs the old flat-rate system. Project your payoff timeline with indexation. Analyse whether voluntary repayments make financial sense. Updated for FY 2025-26 with 20% debt reduction and 3.2% indexation.
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How to Use This Calculator
Annual Repayment tab
Enter your repayment income (not just taxable income — it includes fringe benefits, net investment losses, reportable super contributions, and exempt foreign income) and your current HELP balance. The calculator computes your compulsory repayment under the new marginal system and compares it with the old flat-rate system so you can see your saving.
Payoff Timeline tab
Enter your current balance, income, expected income growth, and assumed indexation rate. The calculator projects how many years until your debt is fully repaid, including the total indexation cost added to your balance over time.
Voluntary Repayment tab
Enter your balance, a lump sum you are considering paying, and your income. The calculator shows how many years you would save, how much indexation you would avoid, and whether the money is better invested at 7% return instead.
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The Formula
Income up to $67,000: $0 repayment
$67,001 – $125,000: 15c per $1 over $67,000
$125,001 – $179,285: $8,700 + 17c per $1 over $125,000
$179,286+: 10% of total repayment income
Old System (pre FY 2025-26):
Flat percentage of TOTAL repayment income (1% – 10%), depending on income bracket.
Example: $80,000 income × 3.5% = $2,800 repayment.
Indexation:
Applied 1 June each year at CPI rate (3.2% for 2025).
New balance = Old balance × (1 + CPI rate)
20% Debt Reduction (June 2025):
All HELP balances reduced by 20% BEFORE indexation was applied on 1 June 2025.
Worked Example
Graduate earning $80,000 with $25,000 HELP balance
A graduate with repayment income of $80,000 and an outstanding HELP balance of $25,000 after the 20% debt reduction.
Step 1: New system compulsory repayment
Step 2: Old system comparison
Step 3: After repayment
Verdict: Under the new marginal system, this graduate pays $850 less per year than under the old system. The effective repayment rate is 2.4% of total income, compared to 3.5% under the old flat-rate system. At this rate with 3% income growth and 3.2% indexation, the debt would be repaid in approximately 11 years.
HECS-HELP Rates at a Glance (FY 2025-26)
New marginal repayment rates (FY 2025-26 onwards)
| Repayment Income | Repayment Amount |
|---|---|
| $0 – $67,000 | Nil |
| $67,001 – $125,000 | 15c per $1 over $67,000 |
| $125,001 – $179,285 | $8,700 + 17c per $1 over $125,000 |
| $179,286+ | 10% of total repayment income |
Source: ATO. New marginal system effective FY 2025-26. Repayments are only on income above each threshold, not on total income.
Old system rates (pre FY 2025-26) — for comparison
| Repayment Income | Rate (% of total income) |
|---|---|
| Below $54,435 | 0% |
| $54,435 – $62,850 | 1.0% |
| $62,851 – $66,620 | 2.0% |
| $66,621 – $70,618 | 2.5% |
| $70,619 – $74,855 | 3.0% |
| $74,856 – $79,346 | 3.5% |
| $79,347 – $84,107 | 4.0% |
| $84,108 – $89,154 | 4.5% |
| $89,155 – $94,503 | 5.0% |
| $141,848+ | 10% |
Old system applied a flat % to TOTAL income. New system is marginal (only on income above threshold). Major improvement for most borrowers.
Key changes — 20% reduction and indexation
| Change | Detail |
|---|---|
| 20% debt reduction | Applied to all HELP balances before 1 June 2025 indexation |
| Indexation rate (2025) | 3.2% (CPI, applied 1 June 2025) |
| Marginal repayments | New from FY 2025-26 — replaces flat % system |
| Voluntary bonus | Removed (was 5-10%, ended 2017) |