A Moneybren tool

NZ STUDENT LOAN CALCULATOR

When will your New Zealand student loan actually be gone? The 12% rule, the debt-free date — and what happens to the loan if you head overseas.

Your numbers

$
$/yr
% pa
$/mo
% pa
IRD sets this yearly — 5.6% from 1 April 2026. Check the current rate.
$/yr
IRD sets fixed minimums by loan size — check your myIR assessment.
Debt-free in
—

The payoff curve

Year-by-year detail

YearRepaid this yearInterest addedBalance
The rules, honestly. NZ-based borrowers repay 12c of every dollar over $24,128, deducted through PAYE with the SL tax code — and pay zero interest, which makes this the cheapest debt you will ever have. That cuts both ways: there’s no financial reward for paying it off early (inflation is shrinking it for free), so weigh voluntary repayments against KiwiSaver, investing, or a house deposit. The trap is going overseas: after about six months away you lose interest-free status, interest accrues on the whole balance, and IRD requires fixed repayments based on your loan size regardless of what you earn. If an OE is coming, run both modes here first.

How to use this calculator

Enter your balance and salary. The calculator applies the 12% over-threshold rule, grows your salary each year, and gives you the debt-free date. Add voluntary extras to see the time saved — or switch to overseas mode to see what an OE does to the loan.

If the overseas balance grows instead of shrinking, that’s not a bug — that’s the warning.

This is a tool only, and none of the information it produces is financial advice. Its accuracy is not guaranteed. Always check your own figures and get advice from your own financial professionals before making decisions.

A worked example

Say you earn $65,000 and you’ve got a student loan.

Repayments are 12% of everything you earn over the threshold, which is $24,128 for the 2026 year. So: $65,000 minus $24,128 is $40,872, and 12% of that is about $4,905 a year – taken automatically out of your pay through your tax code.

The calculator shows your yearly and weekly repayment, and how long the loan takes to clear. Put your income and balance in above.

Quick note: the 12% rate and the $24,128 threshold are the 2026 figures – the threshold in particular gets adjusted, so this example is just to show how the deduction works. Check ird.govt.nz for the current numbers.

What most people get wrong about student loans

Here’s the thing almost nobody appreciates: while you live in New Zealand, your student loan is interest-free. It has been since 2006. That changes everything about how you should treat it.

Because it charges no interest, there’s usually no rush to pay it off early. A dollar you throw at an interest-free loan clears a debt that isn’t growing – but that same dollar invested could actually compound and grow. For most NZ-based borrowers, making extra voluntary repayments is quietly one of the worst uses of spare cash, precisely because the loan costs you nothing to hold.

The trap is leaving. Spend more than about six months overseas and you become an “overseas-based borrower” – interest switches on, and your repayments get based on your loan balance instead of your income. That’s when a lazy student loan suddenly turns into a real one. So while you’re here: let it ride, and put your money where it can actually grow.

This calculator and page are general information only and not financial advice. Everyone’s circumstances will vary – always do your own research and consult your own financial professionals before making decisions.