HECS-HELP Repayment Calculator
Calculate your HECS-HELP student loan repayment based on your annual income and current debt balance. See your compulsory repayment rate, annual and fortnightly deductions, years to pay off, total indexation cost, and a full year-by-year projection using the official 2025-26 ATO repayment thresholds.
How HECS-HELP Repayments Work in Australia
The HECS-HELP repayment calculator is a free tool that estimates your compulsory Higher Education Loan Program repayment based on the Australian Taxation Office 2025-26 income thresholds. HECS-HELP is an income-contingent loan scheme that allows Australian students to defer the cost of their university education. Repayments are collected through the tax system once your repayment income exceeds a minimum threshold, currently set at $54,435 for the 2025-26 financial year.
The repayment rate is applied to your entire repayment income, not just the portion above each threshold. This means a small salary increase that pushes you into a higher bracket results in the new rate being applied to your full income. Rates start at 1% for incomes between $54,435 and $62,850 and increase progressively through 19 brackets up to a maximum of 10% for incomes above $159,663. Understanding which bracket you fall into helps you plan your take-home pay accurately. Last updated: April 2026, based on ATO 2025-26 schedule.
HELP Debt Indexation and Total Cost
HELP debts are indexed annually on 1 June. The indexation rate is the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI), as legislated by the Australian Government in 2023. This indexation increases your outstanding balance before any compulsory repayments for the year are credited. For large debts with modest incomes, indexation can add thousands of dollars annually, extending the repayment timeline significantly. This calculator models indexation year by year so you can see the true total cost of your HELP debt over its lifetime.
Voluntary repayments can be made to the ATO at any time to reduce your balance faster. While the 5% voluntary repayment bonus was removed in 2017, paying extra still reduces future indexation charges and shortens your repayment period. If your income is below the minimum threshold, no compulsory repayment is required, but your debt continues to grow through indexation.
Using the Year-by-Year Projection
The projection table below the summary results models each financial year from now until your debt reaches zero. It accounts for your expected annual salary increase and CPI indexation rate to show how your debt balance, repayment rate, and annual repayment evolve over time. The projection reveals the total amount you will repay including indexation, which is often significantly more than the original debt amount. By adjusting the salary growth and indexation inputs, you can model different scenarios such as career progression, voluntary repayments, or periods of lower income.
HECS-HELP Repayment Formulas
Annual Repayment: Repayment Income × Applicable Rate %
Fortnightly Deduction: Annual Repayment ÷ 26
Indexation Amount: Opening Balance × CPI Rate %
Closing Balance: Opening Balance + Indexation − Repayment
Tips for Managing Your HECS-HELP Debt
Consider salary sacrificing into superannuation to reduce your repayment income below a threshold boundary, which can lower your compulsory repayment rate. Track threshold boundaries carefully when negotiating pay rises, as crossing a bracket can increase your repayment by more than the pay rise itself. Use this calculator regularly as the ATO updates thresholds annually. If you are earning below the minimum threshold, your debt still grows through indexation, so even small voluntary repayments can save you money in the long run.