Australia HECS-HELP Repayment Calculator 2026-27
Calculate your annual HECS-HELP student debt repayment, years to repay, and total indexation paid using the 2026-27 marginal repayment bands built into this tool.
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How to use this calculator
- 1
Enter your current HECS-HELP balance. The tool starts from that single number and does not separate loan types or scheduled indexation dates.
- 2
Enter your annual income. The tool applies the marginal bands built into it (2026-27): nothing up to $69,528, 15 cents per dollar above that, 17 cents per dollar above $129,717 on top of a fixed base, and 10% of your whole income above $186,051.
- 3
Set an annual income growth rate. The default is 3%; entering 0 keeps income flat for every year of the projection. The band edges are held fixed, not indexed, in the projection.
- 4
The tool assumes a flat 4% indexation every year before repayments. It is a round modelling figure, not the announced rate for any year; actual indexation is the lower of CPI and the wage price index, applied each 1 June.
- 5
Read the years to repay, year-one repayment and total indexation. If the tool says 50+ years, repayments do not clear the balance inside the 50-year limit.
Frequently asked questions
How does the tool work out the repayment?
It uses the marginal bands built into it, labelled 2026-27: $0 up to $69,528; 15 cents for each dollar between $69,528 and $129,717 (so $9,028 at the top of that band); $9,028 plus 17 cents for each dollar between $129,717 and $186,051; and 10% of the whole income above $186,051. At $70,000 the repayment is $71, at $100,000 it is $4,571, and at $160,000 it is $14,176. The bands join up, so there is no cliff when income crosses a threshold.
How is indexation modelled?
Every year the tool adds 4% to the balance, then subtracts that year’s repayment. The 4% is a single assumption in the code and is the same in every year. Actual indexation is the lower of the consumer price index and the wage price index, applied on 1 June, so it will not match that assumption; the rates applied on 1 June 2025 and 1 June 2026 were 3.2% and 2.8%. Changing the indexation rate is not an input, so for another rate you can only compare the results as a guide. On the default inputs the tool reports $12,579 of cumulative indexation over 15 years.
How does income change over the projection?
Income starts at your input and is multiplied by one plus the growth rate after each year, and the repayment is recalculated from the bands each year. The band edges themselves are held fixed, whereas real thresholds are updated over time. For a $25,000 debt at $70,000 and 3% growth the first-year repayment is only $71 and the tool shows 15 years. With growth set to 0, a $40,000 debt at $100,000 repays $4,571 a year and clears in 11 years.
What income should I enter?
The tool uses exactly the number you type as repayment income. It does not add reportable fringe benefits, net investment losses or other adjustments, and it does not subtract salary sacrifice or deductions. If your assessable figure differs from your salary, enter the figure you expect to be assessed on.
When does the calculator say 50+ years?
When income is at or below the first threshold, or only just above it, the repayment can be less than the 4% added each year and the balance never reaches zero in the 50-year loop. A $15,000 debt at $50,000 and 3% growth still clears in 26 years because income eventually crosses $69,528, but a $25,000 debt on $69,529 held flat gives a 50+ years result. A $0 debt shows 0 years.
What does the year-one repayment line show?
It shows the repayment for the first year at your entered income, capped at the indexed balance so the figure never exceeds what is owed. The monthly line is that annual number divided by 12. It does not show later years, when income growth changes the amount. For $60,000 at $160,000 the year-one repayment is $14,176 and the monthly figure is $1,181.
What is not modelled, and how current is it?
Voluntary repayments, bonuses, one-off income spikes, pay cuts, overseas arrangements, future changes to the thresholds and any change in the repayment system itself are not modelled. The bands and the 4% assumption are the figures built into this tool, with the bands labelled 2026-27 (the marginal system applies from the 2025-26 income year). These rules change at least every 1 July, the tool’s tables are not updated automatically, and the ATO or a qualified adviser decides what applies to you.
Australia HECS-HELP calculator — marginal repayment bands, indexation and years to repay
Marginal bands applied above the threshold
The tool uses the marginal bands built into it, labelled 2026-27. Nothing is repaid up to $69,528. Above that, 15 cents of each extra dollar goes to the debt up to $129,717, 17 cents of each extra dollar applies up to $186,051, and above that 10% of the whole income is repaid. Each simulated year then adds a flat 4% to the balance, deducts the repayment, and grows income by your chosen rate.
Worked example: the default $25,000 debt on $70,000
At $70,000 the income is only $472 above the threshold, so the first-year repayment is $71, which is $6 a month. Income grows 3% a year and the repayment grows quickly with it, but the 4% added each year is larger than the repayment for the first few years. The balance clears in 15 years with $37,579 repaid in total, of which $12,579 is indexation. Those totals are modelled results from a flat 4% assumption, not a quote of what the debt will cost.
Worked example: income level and growth change the timeline
A $40,000 debt on $100,000 with income held flat repays $4,571 a year and the tool shows 11 years, $50,214 repaid and $10,214 of indexation. A smaller $15,000 debt on $50,000 starts below the threshold, repays nothing in year one and relies on 3% growth to cross it, which takes the projection to 26 years and $19,782 of indexation. A $60,000 debt on $160,000 sits in the 17-cent band and clears in 5 years; at $190,000 the 10% rate on the whole income applies and it clears in 4.
| Debt, income, growth | Year-one repayment | Years | Total repaid | Indexation |
|---|---|---|---|---|
| $25,000, $70,000, 3% | $71 | 15 | $37,579 | $12,579 |
| $40,000, $100,000, 0% | $4,571 | 11 | $50,214 | $10,214 |
| $15,000, $50,000, 3% | $0 | 26 | $34,782 | $19,782 |
| $60,000, $160,000, 3% | $14,176 | 5 | $66,759 | $6,759 |
| $60,000, $190,000, 3% | $19,000 | 4 | $65,416 | $5,416 |
Why the third row takes so long
With income below the threshold nothing is repaid, but 4% a year is added to the balance. The $15,000 debt grows for several years before income, rising at 3%, reaches $69,528. After that, repayments start small, so indexation continues to eat into them. The lesson from the row is the effect of the gap between the indexation assumption and the early repayments, not a recommendation about what to do.
Limits of the projection
The bands, the 4% assumption and the 3% growth default are simplifications. Real indexation varies by year (the lower of CPI and the wage price index, applied each 1 June), repayment income covers more than salary, the thresholds are updated over time and the repayment system is set by legislation that changes at least every 1 July. The tool is not updated automatically, so the ATO or a qualified adviser is the authority on what applies to your debt.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →