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Homeโ€บNew Zealandโ€บStudent Loan Calculator

Student Loan Calculator New Zealand 2025/26

Calculate your student loan repayment schedule, compare NZ vs overseas interest costs, and see how voluntary payments affect your payoff timeline. NZ resident loans are 0% interest.

$
Your current StudyLink / IRD loan balance
$
Gross salary or self-employment income
โ€”
Estimates only. Actual repayment depends on your IRD assessment and income. Rates may change annually.

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How to Use This Calculator

Tab "Repayment Schedule"

Enter your student loan balance and annual income. The calculator shows your annual repayment (12% of income above $22,828), monthly PAYE deduction, estimated years to pay off, and a year-by-year amortization table. Since NZ loans are 0% interest for residents, you repay only what you borrowed.

Tab "Overseas vs NZ"

Enter your loan balance and income. The calculator compares what happens if you stay in NZ (0% interest, income-based repayment) versus moving overseas (~3.1% interest, mandatory minimum repayments). See the dramatic difference in total cost and time to repay.

Tab "Voluntary Payments"

Enter your loan balance, income, and an extra monthly payment. See how many years you could save by paying more than the standard amount. Note: since the loan is 0% interest, you save time but not money โ€” the total repaid is the same either way.

The Formula

Annual repayment (NZ resident):
Repayment = 12% × (gross income − $22,828)

Example: on $65,000 income:
12% × ($65,000 − $22,828) = 12% × $42,172 = $5,061/year

Monthly PAYE deduction: $5,061 ÷ 12 = $422/month

Interest rates (2025/26):
NZ residents: 0% | Overseas borrowers: ~3.1%

Overseas minimum repayments:
Balance <$15K: $1,000/yr | $15K-$30K: $2,000/yr | $30K+: $3,000/yr

Repayment threshold: $22,828/year (adjusted annually by IRD)

Example

Aroha โ€” Recent Graduate, $40K Loan, $65K Income

Aroha graduated with a $40,000 student loan and earns $65,000/year in Auckland. She stays in New Zealand.

Loan balance$40,000
Annual income$65,000
Income above threshold$65,000 − $22,828 = $42,172
Annual repayment (12%)$42,172 × 12% = $5,061
Monthly PAYE deduction~$422/month
Interest$0 (0% for NZ residents)
Years to pay off~8 years
Total paid$40,000 (exactly what she borrowed)

Frequently Asked Questions

Yes, if you are a New Zealand-based borrower. Your student loan accrues no interest as long as you remain in New Zealand. This means you repay exactly what you borrowed โ€” nothing more. This has been the case since 2006. If you move overseas for more than 184 days, interest begins accruing at approximately 3.1% (2025/26 rate).
For salary and wage earners, student loan repayments are deducted automatically through PAYE (Pay As You Earn) by your employer. You need to use the SL tax code (e.g., M SL instead of just M) so your employer knows to deduct the extra 12%. Self-employed borrowers pay their student loan obligation directly to IRD as part of their end-of-year tax return, or through interim payments.
If you leave New Zealand for 184 days or more, you become an overseas-based borrower. Interest starts accruing at approximately 3.1% per year (2025/26). You must also meet mandatory repayment obligations based on your balance size: $1,000/year for balances under $15,000, $2,000/year for $15,000-$30,000, and $3,000/year for balances over $30,000. If you return to NZ, interest stops from the date you become NZ-based again.
It depends on your priorities. Since NZ student loans are 0% interest, paying extra saves time but not money. The voluntary repayment bonus was removed in 2013, so there is no financial incentive to pay early. However, being debt-free sooner can help with mortgage applications (banks consider your student loan in affordability assessments) and reduce financial stress. Some advisors suggest investing the extra money instead, since the loan costs nothing to hold.
If your annual income is below the $22,828 repayment threshold, no repayment is required. Since NZ student loans are 0% interest for residents, your balance stays exactly the same โ€” it does not grow. You only start repaying when your income exceeds the threshold. The threshold is reviewed and may be adjusted by IRD each tax year.

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