Does HECS-HELP charge interest?

No. HECS-HELP does not charge interest. Instead, your debt is indexed to inflation (CPI) on 1 June each year. Since 2023, the government has capped indexation at the lower of CPI or the Wage Price Index, preventing spikes like the 7.1% indexation in 2023.

Should I voluntarily pay off HECS faster?

Generally no. Since HECS only charges inflation indexation (typically 2-4%), your money almost always earns more invested elsewhere (e.g., shares at 7-10%, or even a savings account at 4.5%). The exception might be if you have a very large debt and indexation is unusually high.

What happens to HECS if I go overseas?

Since 2017, Australians living overseas must lodge a tax return and make HECS repayments if their worldwide income exceeds the threshold. You report your overseas income to the ATO each year. Failure to lodge can result in penalties.

Does HECS affect my borrowing power for a home loan?

Yes. Lenders include your HECS repayment as a liability in their serviceability calculations. A $30,000 HECS debt might reduce your borrowing power by $30,000-$50,000 depending on the lender. However, it doesn't affect your credit score.

HECS/HELP Repayment Calculator

Calculator

Calculate your HECS-HELP repayment amount based on your income and see when your student debt will be paid off.

Free to useNo data storedAI insightsUpdated: February 2026

Got a HECS-HELP debt? You're not alone — over 3 million Australians owe a combined $78+ billion in student debt. HECS-HELP repayments are income-contingent: you only start paying when your income exceeds the minimum repayment threshold. This calculator shows you exactly how much is deducted from your pay, when your debt will be cleared, and whether making voluntary repayments makes financial sense.

Enter Your Details

Real-World Examples

Graduate Starting Career

Mia has $28,000 in HECS debt and starts a job earning $65,000/year. She expects 3% annual pay rises.

At $65,000, Mia's compulsory repayment is 2% = $1,300/year (~$50/fortnight). With 3% annual pay rises and CPI indexation of ~3%, her HECS will be paid off in approximately 12-14 years without voluntary repayments.

High Earner Fast Payoff

James earns $130,000 and has $45,000 in HECS debt remaining.

At $130,000, James pays 7.5% = $9,750/year. At this rate, his HECS is paid off in under 5 years. There's no benefit to making voluntary repayments — his money is better invested elsewhere.

Frequently Asked Questions

Glossary

HECS-HELP

Higher Education Contribution Scheme - Higher Education Loan Program. A government loan that covers tuition fees for eligible Australian students at Commonwealth-supported university places.

Repayment Threshold

The minimum annual income before compulsory HECS repayments begin. Set at $54,435 for 2024-25 and adjusted annually.

Indexation

The annual adjustment to your HELP debt to maintain its real value. Applied on 1 June each year at the lower of CPI or the Wage Price Index.

Worldwide Income

Your total income from all sources globally, used to calculate HECS repayments even if you live overseas.

Related Tools

Savings Goal Calculator

Plan your savings while managing HECS repayments.

Compound Interest Calculator

See why investing beats voluntary HECS repayments.

Net Worth Calculator

Track your net worth including HECS as a liability.

How to Use

1Enter your current HECS-HELP debt balance (check myGov).
2Input your gross annual income from all sources.
3Set your expected salary growth rate.
4Optionally add any voluntary extra repayments you plan to make.
5See your compulsory repayment amount, payoff timeline, and strategy advice.

Key Information

The minimum repayment threshold for 2024-25 is $54,435. Below this, you pay nothing.
Repayment rates range from 1% to 10% of your TOTAL income (not just the amount above the threshold).
HECS-HELP debt is indexed annually to CPI (inflation), NOT interest. In 2023, indexation spiked to 7.1%.
The government capped HECS indexation at the lower of CPI or the Wage Price Index from June 2023 onwards.

Pro Tips

HECS is the cheapest debt you'll ever have — no real interest, just inflation indexation. Prioritise paying off other debts first.
If you earn just above the threshold, consider salary sacrificing to super to drop below and defer repayments.
Voluntary repayments only make sense if your debt is large and indexation is high — otherwise, invest the money instead.
Overseas? You must still file a tax return and make repayments if your worldwide income exceeds the threshold.

Avoid These Mistakes

Rushing to pay off HECS when you have credit card debt or personal loans at 10-20% interest.
Not realising that your ENTIRE income is used to calculate repayments — not just the amount above the threshold.
Forgetting that one-off income (bonuses, capital gains, investment income) can push you into a higher repayment bracket.
Ignoring the annual indexation — a $40,000 debt indexed at 3% adds $1,200/year before you've paid a cent.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026