NZ-based salary and wage deductions
For one main source of regular salary or wages, the calculator applies 12% to annual income above $24,128. Actual payroll uses the matching threshold for each pay period, so irregular pay can differ.
New Zealand · 2027 tax-year settings
Student loan calculator NZ
Estimate compulsory student-loan deductions and how an extra monthly payment could change payoff time. Switch between New Zealand-based and overseas-based repayment models.
Last reviewed: 22 August 2026
Estimated payoff time
4y 7m
New Zealand-based, interest-free model
Compulsory per month
$458.72
Total per month
$458.72
- Annual compulsory repayment
- $5,504.64
- Compulsory repayments paid
- $25,160.00
- Extra repayments paid
- $0.00
- Interest added
- $0.00
- Administration fees added
- $160.00
Planning estimate: Use your myIR balance and assessment for actual payment decisions. This calculator does not include overdue amounts, late-payment interest, new borrowing or special relief.
How extra repayments affect payoff time
An entered extra monthly payment is added after the compulsory amount and reduces the outstanding balance. New Zealand-based loans are modelled interest-free, so extra payments reduce the nominal balance sooner but do not create modelled interest savings.
Overseas-based annual repayment bands
IRD generally assesses overseas repayments using a relevant loan balance. The model keeps the starting band obligation fixed as the balance falls, matching the rule that the obligation does not normally step down.
| Relevant loan balance | Annual repayment |
|---|---|
| Less than $1,000 | Full balance |
| $1,000 to $15,000 | $1,000 |
| Over $15,000 to $30,000 | $2,000 |
| Over $30,000 to $45,000 | $3,000 |
| Over $45,000 to $60,000 | $4,000 |
| Over $60,000 | $5,000 |
Interest for overseas borrowers
The 2027 annual interest rate is 5.6%. IRD calculates it daily and adds it at year end; the projection uses a monthly equivalent, so it is an estimate rather than an assessment.
Annual administration fee
The model can add the current $40 fee annually while the balance is at least $20. The establishment-fee exception is outside the calculator.
When repayments may not cover interest
For a large overseas balance, the assessed minimum can be less than interest and fees. The calculator continues for up to 80 years and clearly flags when the modelled balance is not repaid.
What this calculator excludes
Secondary employment, adjusted net income, repayment exemptions, special deduction rates, temporary overseas repayment suspensions, late payments and penalties require separate IRD treatment.
Official sources
Rates, thresholds, overseas bands, interest and fees are sourced from Inland Revenue. Check myIR for the balance and obligations applying to you.
Frequently asked questions
How are New Zealand student-loan salary deductions calculated?
For a main source of salary or wages, the standard deduction is 12% of income above the applicable pay-period repayment threshold. This calculator uses the $24,128 annual equivalent for a regular-income estimate.
Are student loans interest-free in New Zealand?
New Zealand-based borrowers are generally entitled to an interest-free student loan when they meet the residence requirements. Interest can apply after becoming overseas-based, subject to limited exceptions.
How do overseas student-loan repayments work?
Overseas-based minimum repayments are generally set by the relevant loan-balance band and paid in two instalments. The calculator converts that annual obligation into a monthly planning equivalent and applies the current annual interest assumption.
Can I make extra student-loan repayments?
Yes. The calculator applies an optional extra monthly payment after compulsory payments. Confirm payment methods and your current balance through myIR before paying off the final amount.
Does the annual administration fee apply?
IRD generally charges a $40 administration fee when a loan balance is at least $20 at 31 March, unless an establishment-fee exception applies. You can turn the fee off for a comparison.
Why might my payroll deduction be different?
Actual deductions use pay-period thresholds and payroll rounding. Irregular pay, secondary income, exemptions, special deduction rates, other income and compulsory extra deductions can change the amount.