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Income Driven Repayment Calculator

income-driven repayment calculator. Get instant, accurate results. Enter values for instant results with step-by-step formulas.

Reviewed by Sahil, Senior Finance & Tax Editor

Reviewed by Sahil, Senior Finance & Tax Editor

Formula

SAVE/PAYE: 10% of discretionary income / 12 | IBR: 15% (old) or 10% (new) | ICR: 20% or 12-yr standard (lesser)

Discretionary income = AGI - 225% of poverty line (SAVE) or 150% (others). SAVE: forgiveness in 20 yrs (undergrad) or 25 yrs (grad). PAYE: 20 yrs. IBR: 20-25 yrs. ICR: 25 yrs.

Worked Examples

Example 1: $50K SAVE plan

Problem:$50K loans, $45K AGI, single, SAVE plan

Solution:Discretionary: $45K - $33,885 = $11,115. Payment: $93/mo. Much forgiven after 20 yrs.

Result:$93/mo payment, significant forgiveness

Frequently Asked Questions

How do income-driven repayment plans work?

IDR plans cap monthly payments at 10-20% of discretionary income. Options include SAVE, PAYE, IBR, and ICR. Remaining balances are forgiven after 20-25 years of qualifying payments, though forgiven amounts may be taxable.

What is the standard repayment plan for federal loans?

The standard plan has fixed monthly payments over 10 years. This minimizes total interest paid but has higher monthly payments. Graduated plans start lower and increase every two years over 10 years.

Reviewed by Sahil, Senior Finance & Tax Editor · Editorial policy