Australia HECS-HELP Calculator
Calculate your HECS-HELP student loan repayment based on your income. See your repayment rate, annual amount and estimated years to pay off your debt.
HECS-HELP Details
Annual Repayment
Payoff Projection
Disclaimer: This calculator is for estimation purposes only. It assumes a static income and does not account for variable future earnings. HECS-HELP repayments are indexed annually to the Consumer Price Index (CPI). For authoritative information, check the ATO website.
Repayment Threshold: No repayment is required if your income is below $54,435 (2024-25).
How HECS-HELP Repayments Work
HECS-HELP loans are interest-free in nominal terms but indexed to inflation each 1 June. Compulsory repayments kick in when income exceeds $54,435 (2024-25 threshold), starting at 1% and rising to 10% at incomes above $159,664. Repayments are calculated on 'repayment income' which includes salary, reportable fringe benefits, investment losses, and reportable super contributions.
Indexation has been a sore spot - 7.1% in 2023, 4.7% in 2024 - because it can outpace voluntary repayments at the lower brackets. A $40,000 HECS debt grew $2,840 just from indexation in 2023. The government announced changes to use the lower of CPI or wage price index from 2024 onward to stop runaway debts.
Repayment Brackets 2024-25
Income brackets and rates: under $54,435 nil, $54,435-62,850 1%, up to $74,547 2%, $79,021 2.5%, $83,766 3%, $88,792 3.5%, $94,120 4%, $99,768 4.5%, $105,755 5%, $112,100 5.5%, $118,827 6%, $125,957 6.5%, $133,514 7%, $141,524 7.5%, $150,015 8%, $159,664 8.5-10%. The percentage applies to your full repayment income, not just amount above threshold.
Crossing a bracket means a noticeable jump in repayment. Earning $54,500 means $545/year repayment (1%); earning $63,000 means $1,260/year (2%). Repayments are withheld via PAYG from your salary along with tax - employers ask if you have a HECS debt and adjust withholding accordingly.
Voluntary Repayments and Indexation Timing
Voluntary repayments reduce your debt immediately. The trick is timing around 1 June indexation. Pay before 1 June and your principal balance reduces before indexation hits, saving you the indexation cost on that amount. Waiting until 1 July, you pay the indexation first, then reduce.
The 5% voluntary repayment bonus that previously existed was abolished in 2017. Now there's no incentive beyond reducing the principal subject to indexation. For high earners with HECS, voluntary repayment can save 4-7% per year (the indexation rate), which is decent but not amazing if you have higher-return investments available.
Other HELP Loans and Total Debt
HELP includes HECS-HELP (university fees), FEE-HELP (vocational and full-fee places), OS-HELP (overseas study), SA-HELP (student services), VET Student Loans (private education). All combine into one indexed debt with one repayment percentage. The lifetime FEE-HELP limit is around $113,028 for most courses, $162,336 for medical/dental/veterinary.
Total HELP debt is reported on your tax return and on myGov. Indexation applies to the entire balance. Repayment is mandatory once income crosses the threshold - you cannot opt out. The [Australia Pay Calculator](/australia-pay-calculator) shows HECS withholding alongside tax and Medicare on your take-home.
Frequently Asked Questions
Does HECS affect my home loan?
Yes - banks treat your monthly HECS withholding as a debt servicing cost when calculating mortgage borrowing capacity. A $80k HECS debt with 5.5% repayment ($4,400/year, $367/month) reduces what you can borrow by roughly $50,000 in current rates. Many first home buyers consider voluntary HECS payoff before applying.
What if I move overseas?
Australian residents abroad still have HECS repayment obligations if their worldwide income exceeds the threshold. The ATO requires annual reporting of overseas income and repayments are calculated on a notional basis (no PAYG withholding overseas). Many expats accumulate large indexation balances.
Can my HECS be forgiven?
Only at death or in certain extreme hardship circumstances. The government has occasionally announced specific debt forgiveness for teachers in regional areas or rural medical practitioners with binding terms - but these are exceptions, not general policy.
How long until my HECS is paid off?
Depends on income trajectory. Someone graduating to a $60k job with $40k HECS, getting 4% pay rises, repays in roughly 12-15 years. A higher graduate income ($100k+) repays much faster - perhaps 5-8 years. Lower incomes near the threshold can take 25+ years with continuous indexation drag.
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