Calculate Your IDR Payment
Enter your financial details to compare payments across all federal income driven repayment plans.
Your Income Driven Repayment Options
Based on your income and family size, here are your estimated monthly payments under each plan:
Standard 10-Year Comparison
Standard Payment: $0/month
Income driven repayment plans can significantly reduce your monthly obligation if your income is modest relative to your debt.
Understanding Income Driven Repayment Plans
Federal student loan borrowers often struggle with standard 10-year repayment schedules. An income driven repayment plan calculator helps you explore alternatives that tie your monthly payment to what you actually earn. These plans exist because Congress recognized that a one-size-fits-all approach doesn't work when graduates enter vastly different career paths with varying salary trajectories.
The Department of Education currently offers four main IDR options. Each uses a formula based on your discretionary income—the gap between what you earn and a poverty-line threshold for your family size. Running the numbers before enrolling helps you understand which option minimizes your payment while aligning with your long-term financial goals.
The Four Federal IDR Plans Explained
Choosing the right plan requires understanding how each one calculates your payment. The calculator above models all four options, but here's what drives the differences:
| Plan | Payment Cap | Forgiveness Timeline | Eligibility |
|---|---|---|---|
| SAVE | 10% (undergrad) / 10% (grad) | 20-25 years | Direct Loans |
| PAYE | 10% of discretionary income | 20 years | New borrowers after 10/1/2007 |
| IBR | 10-15% of discretionary income | 20-25 years | Most federal loans |
| ICR | 20% or 12-year fixed | 25 years | All Direct Loans, Parent PLUS |
SAVE Plan: The Newest Option
The SAVE plan (Saving on a Valuable Education) replaced REPAYE in 2023 and offers the most generous terms for many borrowers. It calculates discretionary income using 225% of the poverty line rather than 150%, meaning more of your income stays protected. For undergraduate-only borrowers, payments drop to just 5% of discretionary income starting in 2024.
SAVE also prevents negative amortization—if your payment doesn't cover accruing interest, the government covers the difference. This feature alone makes it worth comparing against older options you might already be enrolled in.
When IBR or PAYE Makes More Sense
Income-Based Repayment (IBR) and Pay As You Earn (PAYE) remain relevant for specific situations. PAYE caps payments at the standard 10-year amount, which protects high earners from paying more than they would under standard repayment. IBR offers similar protections and accepts a broader range of loan types.
Borrowers pursuing Public Service Loan Forgiveness (PSLF) should pay particular attention to plan selection. Since PSLF forgives balances after 120 qualifying payments regardless of the amount forgiven, minimizing monthly payments maximizes the benefit. This tool helps identify which plan produces the lowest payment for your situation.
Calculating Your Discretionary Income
Every income driven repayment plan uses discretionary income as the foundation for payment calculations. The formula varies slightly by plan, but the concept remains consistent: your adjusted gross income minus a poverty-line threshold equals discretionary income. The 2024 poverty guidelines set the baseline at $15,060 for a single person in the continental US, with $5,380 added for each additional family member.
Example Calculation
Annual Income: $50,000
Family Size: 1 person
Poverty Guideline (150%): $22,590
Discretionary Income: $50,000 - $22,590 = $27,410
IBR Payment (10%): $27,410 × 10% ÷ 12 = $228/month
Annual Recertification Requirements
Enrolling in an income driven repayment plan isn't a one-time decision. You must recertify your income and family size annually to maintain your calculated payment. Miss the deadline, and your payment jumps to the standard amount—potentially a significant increase. This calculator gives you a snapshot based on current numbers, but expect your payment to change each year as your income evolves.
Some borrowers strategically time their recertification to minimize payments. If you expect a raise, recertifying before the increase locks in a lower payment for another year. Conversely, if you've experienced income loss, recertifying immediately can reduce your payment mid-cycle.
Tax Implications of Loan Forgiveness
After 20-25 years of payments under an income driven repayment plan, any remaining balance gets forgiven. However, this forgiveness traditionally counts as taxable income. A $50,000 forgiven balance could trigger a tax bill of $10,000 or more depending on your bracket. The American Rescue Plan temporarily exempted student loan forgiveness from federal taxes through 2025, but this provision may not extend.
PSLF forgiveness, by contrast, has always been tax-free. Borrowers in qualifying public service jobs should factor this significant advantage into their planning. Running scenarios while considering the tax implications helps paint a complete financial picture.
Choosing the Right Plan for Your Situation
No single income driven repayment plan works best for everyone. Your optimal choice depends on loan types, income trajectory, family plans, and career path. Teachers, nurses, and government employees pursuing PSLF should prioritize the lowest monthly payment. Private sector workers expecting significant salary growth might prefer plans with payment caps.
Use the income driven repayment plan calculator above as a starting point, then consider consulting with a student loan counselor for personalized guidance. The Department of Education's loan simulator and your loan servicer can also provide official estimates based on your actual loan data.
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