NZ Student Loan Repayment Calculator 2026 — 12% Over $24,128
Calculate your New Zealand student loan repayment for 2026 — 12% of income over the IRD threshold of NZ$24,128 — plus overseas-based interest and accelerated payoff scenarios.
The 12% Over $24,128 Rule
NZ-based borrowers pay 12% of every dollar earned ABOVE the annual threshold of NZ$24,128 (2026). For someone earning NZ$60,000, repayment = (60,000 − 24,128) × 12% = NZ$4,304/year ≈ NZ$83/week. Deducted via PAYE if you ticked the M SL tax code.
Interest-Free While in NZ
Loans are 0% interest while you live in NZ for at least 183 days/year. The principal balance doesn't grow. This is uniquely generous — most countries charge 4–7% even for residents.
Overseas-Based Charges 4%
If overseas 184+ days, IRD adds 4% annual interest (compounding monthly). A NZ$30,000 balance grows ~$1,200/year passively. Mandatory minimum repayments scale to balance: under $45k = $1,000/year; $45k-60k = $2,000; etc. — paid in two installments (Sept 30, March 31).
Voluntary Repayment Bonus Gone
The 10% bonus for voluntary repayment of $500+ ended in 2014. Today extra payments simply reduce principal — no special bonus. Strategy: extra repayments make sense if overseas (avoids 4% interest) or if you have other higher-priority savings goals.
Source: ird.govt.nz student loan repayment scheme 2026. Last updated: May 2026.
Frequently Asked Questions
What is the M SL tax code?
Tax code for someone with a NZ student loan and one job. PAYE automatically deducts 12% of income above threshold. Use S SL for secondary employment with student loan.
Can I get the loan written off?
Only on death. There is no general write-off after years of payment. Hardship relief reduces repayment temporarily but doesn't erase the loan.
How is overseas interest calculated?
4% per year, compounded monthly on the daily balance. The interest grows even when you make minimum payments — overseas-based loans grow if income is low. NZ$30k at 4% adds ~$1,200/year.
Does going overseas restart interest charge?
Interest applies from day 184 of overseas residence (or after 6 consecutive months). You can apply for an interest-free hardship grant if you can prove specific exemption (Pacific Island work, medical, etc.).
Is my data private?
Yes. All calculations run in your browser. Income, contribution and asset data are never sent, stored, or shared.