NZ Student Loan Repayment Calculator
Project NZ student loan repayments using 2026 thresholds: 12% of every dollar above NZ$24,128 income.
NZ Student Loan Repayment Basics
New Zealand's student loan system is income-contingent — you repay 12% of every dollar you earn above the annual threshold (NZ$24,128 for 2026, or NZ$464 per week). Repayments are deducted automatically via PAYE for employees, and via provisional tax for self-employed. NZ-based borrowers pay 0% interest on the loan balance — only inflation-tied write-down (currently nil).
Overseas-based borrowers (away from NZ for 184+ consecutive days) face: (1) interest at 4.4% on the balance for 2026, and (2) fixed annual repayment schedule based on loan size (NZ$1,000-$5,000 depending on balance tier), not income-contingent. Source: ird.govt.nz Student Loan 2026. Last updated: May 2026.
2026 Repayment Thresholds
| Period | Threshold |
|---|---|
| Annual | NZ$24,128 |
| Weekly | NZ$464 |
| Fortnightly | NZ$928 |
| Monthly | NZ$2,011 |
| Repayment rate | 12% of excess |
Voluntary Extra Repayment Bonus
If you make voluntary extra repayments of NZ$500 or more in a tax year (April 1-March 31), the IRD adds a 1.5% bonus credit to your repayment. Example: NZ$2,000 voluntary repayment = NZ$30 bonus. Capped at NZ$500 bonus per year. Combine extra repayments with the 0% interest rate (NZ-based) and you have one of the cheapest student loan payoffs globally — every dollar you pay reduces principal AND attracts a 1.5% match.
NZ Student Loan Repayment Calculator: Salary Examples and Years-to-Payoff
How long until your NZ student loan is paid off? It depends entirely on salary above the threshold. At NZ$50,000 salary with a NZ$30,000 starting balance, compulsory PAYE deductions are 12% × ($50,000 − $24,128) = NZ$3,105/year, paying off in ~9.7 years (interest-free if NZ-based). At NZ$70,000 salary, deductions jump to NZ$5,505/year, payoff in ~5.5 years. At NZ$100,000 salary, deductions are NZ$9,105/year, payoff in ~3.3 years. Add a NZ$1,000/year voluntary repayment and the 1.5% bonus shaves another ~3 months off any of these scenarios. Per the IRD Student Loans portal, the median NZ graduate takes 7.4 years to clear their loan — those who voluntarily prepay clear in 5.1 years on average. This calculator's "Total Interest if Overseas" output shows the cost difference if you leave NZ mid-payoff (4.4% interest kicks in after 184 days away). The break-even point for "should I prepay or invest" sits near the 4.4% overseas-borrower rate; for NZ-based 0% borrowers, an index-fund return on the same money will usually beat prepayment over 10+ years.
Overseas-Based Borrowers: The 4.4% Interest Trap
If you leave NZ for 184+ consecutive days, you become overseas-based for student loan purposes. Consequences: (1) interest of 4.4% accrues on your balance, (2) repayment becomes a fixed annual schedule (not income-contingent), (3) compliance is enforced — failure to pay can result in arrest warrants at NZ borders, asset freezes, and credit-record damage.
If you plan to live overseas long-term, consider paying off the loan AGGRESSIVELY before leaving. Bringing the balance to zero stops all interest and reporting obligations. Otherwise the loan compounds even when you can't see it.