HECS-HELP Repayment Calculator Australia
Calculate your annual HECS-HELP repayment and see how many years until your student debt is paid off.
Last updated: April 2026
Years to Pay Off
10
This Year's Repayment
$1,750
Repayment rate: 2.5% of income
Starting Debt
$25,000
Annual Repayment (Yr 1)
$1,750
Total Repaid
$30,251
Indexation Added
$5,251
| Year | Income | Repayment | Indexation | Closing Balance |
|---|---|---|---|---|
| 1 | $70,000 | $1,750 | $884 | $24,134 |
| 2 | $72,100 | $2,163 | $835 | $22,805 |
| 3 | $74,263 | $2,228 | $782 | $21,359 |
| 4 | $76,491 | $2,677 | $710 | $19,392 |
| 5 | $78,786 | $2,757 | $632 | $17,267 |
| 6 | $81,149 | $3,246 | $533 | $14,554 |
| 7 | $83,584 | $3,343 | $426 | $11,636 |
| 8 | $86,091 | $3,874 | $295 | $8,057 |
| 9 | $88,674 | $3,990 | $155 | $4,221 |
| 10 | $91,334 | $4,221 | $0 | $0 |
How HECS-HELP Repayments Work
HECS-HELP is Australia's student loan system for Commonwealth Supported Place (CSP) students. Unlike commercial loans, repayments are income-contingent — you only repay when your income exceeds the threshold ($54,435 in 2024-25).
Repayments are calculated as a percentage of your entire taxable income once you cross the threshold, and are collected automatically by the ATO through your tax return.
How to use this calculator
- 1Enter your HECS debt — Check your myGov account or ATO for your current HECS-HELP balance.
- 2Enter annual income — Your expected taxable income for the year.
- 3Set income growth — Expected annual income growth — affects how quickly repayments increase.
- 4View repayment timeline — See annual repayment, years to pay off, and total amount paid including indexation.
Formula & example
Annual repayment = Income × Repayment Rate% Indexation applied June 1 each year
HECS debt: $30,000 | Income: $75,000
Repayment rate at $75,000: 3.5%
Annual repayment: $75,000 × 3.5% = $2,625
After 3% indexation: net reduction ~$1,725/yr
Benefits
Income-contingent
No repayments when income below threshold — protects you during low-income periods.
No commercial interest
Indexed to CPI only — usually lower than commercial loan rates.
Automatic via ATO
No direct debit setup required — collected automatically through tax return.
No default risk
Unlike commercial debt, HECS cannot default or affect your credit score.
Use cases
Recent graduates
See when your HECS debt will be paid off given your starting salary.
Career change planning
Model how a pay rise or career change affects your HECS payoff timeline.
Home loan planning
Understand your HECS repayment obligations when calculating home loan capacity.
Voluntary repayment decision
Decide whether to make voluntary repayments to clear debt faster before indexation.
Frequently asked questions
When do I start repaying HECS-HELP?+
HECS-HELP repayments start automatically when your income exceeds the minimum threshold — $54,435 in 2024-25. Repayments are collected through the tax system when you lodge your annual tax return.
How is HECS-HELP indexed?+
HECS-HELP debt is indexed to CPI (Consumer Price Index) each June 1. In June 2023, indexation was 7.1% — significantly increasing debt for many graduates. The 2024 indexation was 4.7%.
Can I voluntarily repay HECS-HELP faster?+
Yes. You can make voluntary repayments directly to the ATO at any time. Previously there was a 10% bonus for voluntary payments, but this was removed in 2017. You still benefit from avoiding further indexation on the amount repaid.
Does HECS-HELP affect my ability to get a home loan?+
Yes. Lenders factor HECS-HELP repayments into your borrowing capacity assessment. A $30,000 HECS debt earning $80,000 might reduce your borrowing capacity by $30,000-$50,000 depending on the lender.
Is HECS-HELP interest-free?+
HECS-HELP doesn't charge interest in the traditional sense, but the debt is indexed to CPI each year. In high-inflation years (like 2022-23), this indexation can be substantial — effectively acting like high interest.
Related articles
HECS-HELP indexation 2024: What you need to know
How CPI indexation works, 2024 rates, and strategies to minimise the impact.
Should I voluntarily repay my HECS debt?
When it makes financial sense to pay off HECS faster and when to invest instead.
HECS-HELP and home loans: What lenders look at
How HECS debt affects your borrowing capacity and what to tell your mortgage broker.