💰 Finance & Money

HECS Repayment Calculator

Find out exactly how much HECS-HELP you repay each year, when your debt will be paid off, and how indexation affects your total balance.

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HECS-HELP Repayment Calculator

Enter your HECS-HELP debt and income to calculate your compulsory annual repayment, estimated payoff timeline, and total indexation cost.

Current HECS-HELP Debt

Annual Taxable Income

Use your gross income before tax deductions.

Expected Annual Salary Growth

Average wage growth in Australia is ~3–4% p.a.

Expected Indexation Rate

2024 indexation was 4.7%. Reformed cap applies from 2025.

Years Until Debt Free

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estimated payoff timeline

Current Debt

This Year’s Repayment

Repayment Rate

Total Repaid

Total Indexation Added

Debt-Free Year

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Your Current Repayment Band (2024–25)

Income Range	Repayment Rate	Your Band

Year-by-Year Repayment Schedule

Year	Income	Repayment	Indexation	Balance

⚠️ General information only. This calculator uses 2024–25 repayment thresholds and estimated indexation. Actual repayments depend on your final taxable income each financial year as assessed by the ATO. Thresholds and rates are updated annually. This is not financial or tax advice.

What is a HECS Repayment Calculator?

A HECS repayment calculator estimates how much of your HECS-HELP debt you’ll repay each year, when your debt will be fully paid off, and how much indexation will add to your balance over time. HECS-HELP (Higher Education Contribution Scheme – Higher Education Loan Program) is the Australian government’s income-contingent student loan system used to pay for university degrees.

Unlike a regular loan, HECS-HELP has no interest — but it is indexed to CPI (Consumer Price Index) each year on 1 June, meaning your debt grows with inflation until it’s paid off. Repayments are compulsory and collected automatically by the ATO once your income exceeds the minimum repayment threshold.

How is HECS Repayment Calculated?

The ATO uses your taxable income to determine your repayment rate. Rates are applied to your whole income — not just the amount above the threshold. The more you earn, the higher your repayment rate.

Annual Repayment = Taxable Income × Repayment Rate

Indexation Added = Debt Balance × Indexation Rate (applied 1 June)

New Balance = Previous Balance + Indexation − Annual Repayment

Debt-Free when Balance ≤ 0

Example: On a $65,000 income with a $28,000 HECS debt, your repayment rate is 3.5% — meaning you repay $2,275 this financial year automatically through your tax return.

How to Use This HECS Calculator

Enter your current HECS-HELP balance — find this on the ATO’s myGov portal under “My profile” → “Tax” → “Manage my debt.” Enter your annual taxable income (gross income before deductions). Set your expected salary growth rate — average Australian wage growth is around 3–4% per year. Set the indexation rate — the 2024 rate was 4.7%, but a government reform now caps indexation at the lower of CPI or WPI going forward. Hit Calculate to see your full repayment schedule.

What Your Results Mean

The years until debt-free is the estimated number of financial years until your HECS balance reaches zero. This year’s repayment is what the ATO will automatically withhold from your income based on your current salary. Total indexation is the cumulative amount added to your debt by CPI indexation over the repayment period — this is the real cost of HECS.

💡 You can make voluntary repayments on top of your compulsory amount at any time via myGov or BPAY. There’s no longer a bonus for voluntary repayments (the 5% discount was abolished in 2017), but paying extra reduces your balance before indexation is applied each 1 June — which can save money.

Is This Calculator Accurate?

This calculator uses the 2024–25 HECS-HELP repayment thresholds and rates. Thresholds are updated annually by the government. The actual repayment amount is determined by the ATO based on your final taxable income for each financial year — including any deductions, investment income, or fringe benefits. Use this as a planning guide, and check the ATO’s official HECS-HELP page for current rates.

2024–25 HECS Repayment Thresholds

The minimum repayment threshold for 2024–25 is $54,435. Below this income, no compulsory repayment is required. Above this threshold, repayment rates range from 1% to 10% of your total income depending on how much you earn. Rates apply to your entire income — not just the amount above the threshold — so crossing into a new band increases your total repayment.

HECS Indexation Explained

Every year on 1 June, your HECS-HELP debt is increased by the Consumer Price Index (CPI) — the measure of inflation. In 2023, indexation was 7.1% — adding thousands to large balances. In 2024 it was 4.7%. Following significant public backlash, the government legislated a reform in 2024 to cap future indexation at the lower of CPI or the Wage Price Index (WPI), and applied a one-off 20% reduction to existing balances. This reform significantly reduces the long-term cost of HECS for graduates.

Should I Make Voluntary HECS Repayments?

The answer depends on your financial priorities. Voluntary HECS repayments make most sense when: your indexation rate is higher than what you’d earn on savings; you’re approaching the threshold where HECS repayments affect your borrowing power for a mortgage; or you want to reduce the psychological burden of the debt. However, HECS is the lowest-cost debt most Australians will ever hold — it has no interest (only indexation), and repayments are only required when you earn above the threshold. High-interest debt (credit cards, personal loans) should always be prioritised over voluntary HECS repayments.

Does HECS Affect My Borrowing Power?

Yes — banks and lenders factor your HECS-HELP repayment obligation into their mortgage serviceability assessments. Your compulsory repayment reduces your disposable income, which lowers the loan amount you qualify for. The impact depends on your income and debt size — on a $70,000 salary with a large HECS balance, your borrowing capacity could be reduced by $30,000–$50,000 compared to having no HECS debt.

Frequently Asked Questions

When do I start repaying HECS-HELP?

You start repaying HECS-HELP automatically when your taxable income exceeds the minimum repayment threshold — $54,435 in 2024–25. Your employer withholds extra tax from your pay if you declare a HECS debt on your tax file declaration. If you don’t update your employer, you’ll have a tax debt when you lodge your return. The ATO reconciles your actual repayment each year when you lodge your tax return.

How do I find my HECS balance?

Log in to myGov and link the ATO service. Go to “My profile” → “Tax” → “Manage my debt” to see your current HECS-HELP balance. Your balance is updated after each financial year’s tax assessment is processed. You can also call the ATO on 13 28 61 for balance enquiries.

What is the HECS indexation rate for 2024–25?

The indexation applied to HECS debts on 1 June 2024 was 4.7%. However, the government subsequently legislated a 20% reduction to all HECS balances (applied in late 2024) and capped future indexation at the lower of CPI or WPI. The default in this calculator is 3.9% as a forward-looking estimate — adjust this based on your own assumptions or current ATO guidance.

Can I pay off my HECS debt overseas?

Yes — since 2017, Australians living overseas are required to make compulsory repayments if their worldwide income exceeds the minimum threshold. You must register with the ATO as an overseas debtor within 28 days of leaving Australia. The repayment thresholds for overseas debtors are based on worldwide income converted to Australian dollars.

Does HECS affect my credit score?

No — HECS-HELP debt does not appear on your credit report and does not directly affect your credit score. However, it does reduce your borrowing power because lenders assess your repayment obligation as a recurring liability when calculating your capacity to service a mortgage or other loans.

What happens to my HECS debt if I die?

HECS-HELP debt is extinguished upon death. It does not pass to your estate, your family, or any co-signers — because HECS-HELP has no co-signers. This is one of the key benefits of the income-contingent loan system versus private student loans.

Is HECS the same as HELP?

HECS is part of the broader HELP (Higher Education Loan Program) system. HECS-HELP specifically covers your student contribution (the portion of fees you pay). Other HELP loans include FEE-HELP (for full-fee paying students), OS-HELP (for studying overseas), and SA-HELP (for student services and amenities fees). All HELP loans are repaid through the same income-contingent ATO system and are combined into one total balance.

Should I pay off HECS or invest instead?

This is one of the most debated personal finance questions in Australia. HECS indexed at 3–5% p.a. vs a diversified share portfolio returning ~8–10% p.a. historically suggests investing wins mathematically. However, paying down HECS improves your mortgage borrowing power, reduces psychological debt burden, and eliminates indexation risk. A common middle-ground: invest while making compulsory repayments, and only make voluntary HECS payments when indexation exceeds your expected investment return.

What income is used to calculate HECS repayments?

The ATO uses your “repayment income” — which is your taxable income plus any total net investment loss, reportable fringe benefits, and reportable employer super contributions. This is broader than just your salary and can catch people who have salary-packaged fringe benefits or investment losses. Your employer uses your income statement to estimate repayments during the year, and the ATO reconciles the exact amount when you lodge your tax return.