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🇦🇺 Australia

HECS / HELP Repayment Calculator

Calculate your compulsory HECS/HELP repayment for 2024–25, years to pay off (including indexation), and how student debt affects your mortgage borrowing power.

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Your HECS details

Check your balance at myGov → ATO → Loan accounts

Your gross annual salary before tax

Long-term average ~3.5%. Was 7.1% in 2023.

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Enter your HECS balance and income

See your compulsory annual repayment, years to be HECS-free (accounting for indexation), and how student debt reduces your home loan borrowing power.

How HECS/HELP repayments work

Unlike a standard loan, HECS/HELP has no interest — but the outstanding balance is indexed to CPI (inflation) each 1 June. Repayments are compulsory once your income exceeds the threshold, and are automatically deducted through the PAYG withholding system — you never receive a bill.

The repayment rate applies to your entire repayment income — not just the portion above the threshold. This means crossing a threshold increases your total repayment significantly.

Example: On $54,434 income — nil repayment. On $54,435 income — 1% = $544/year. The entire income is subject to the rate once the threshold is crossed.

2024–25 repayment rate table

Income rangeRate
$54,435 – $62,8491.0%
$62,850 – $66,6202.0%
$66,621 – $70,6182.5%
$70,619 – $74,8553.0%
$74,856 – $79,3463.5%
$79,347 – $84,1074.0%
$84,108 – $89,1544.5%
$89,155 – $94,5035.0%
$94,504 – $100,1745.5%
$100,175 – $106,1856.0%
$106,186 – $112,5566.5%
$112,557 – $119,3097.0%
$119,310 – $126,4677.5%
$126,468 – $134,0568.0%
$134,057 – $142,1008.5%
$142,101 – $150,6269.0%
$150,627 – $159,6639.5%
$159,664+10.0%

Source: ATO 2024–25 study and training support loan thresholds.

HECS indexation — the hidden cost

HECS/HELP debt doesn't accrue interest, but it's indexed to CPI each year on 1 June. In high-inflation years this can be significant. In 2023, HECS debts increased by 7.1% — meaning a $30,000 balance grew by $2,130 before a single repayment was counted. Over a 10-year payoff period at average indexation, a borrower effectively pays back considerably more than they borrowed in real terms.

From 2025, legislation caps HECS indexation at the lower of CPI or the Wage Price Index (WPI). This protects borrowers when wages are growing more slowly than prices. The indexation rate in the calculator defaults to 3.5% — a reasonable long-term average — but you can adjust it.

Frequently asked questions

HECS/HELP debt is indexed to CPI (Consumer Price Index) each year on 1 June. The indexation rate varies — it was 7.1% in 2023, 3.2% in 2022, and averaged 3–4% over the past decade. In 2024, legislation capped HECS indexation at the lower of CPI or the Wage Price Index (WPI), providing some relief when inflation is high.
You must start making compulsory repayments when your repayment income exceeds $54,435 (2024–25). Your employer withholds extra tax to cover this — you don't need to make separate payments. You can also make voluntary payments at any time to reduce your balance faster.
Yes — you can make voluntary payments to the ATO at any time via BPAY or MyGov. Voluntary payments reduce your balance immediately and stop indexation on that portion. There's no bonus for voluntary payments (the 5% bonus was removed in 2012), but paying early avoids future indexation.
Lenders treat your compulsory annual HECS repayment as a monthly debt commitment. For example, if your annual repayment is $3,600, lenders treat this as $300/month in debt. Each $100/month in debt typically reduces borrowing power by $13,000–$17,000 depending on the lender and interest rate.

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