ICR Payment Calculator

Calculate your Income-Contingent Repayment plan payment. ICR charges 20% of discretionary income with 25-year forgiveness for federal loans.

$
$
%
ICR Monthly Payment
$411.35
Uses Option B: 12-year fixed amount
Option A: 20% Discretionary
$659.33
(Not selected)
Option B: 12-Year Fixed
$411.35
(ACTIVE)
Standard 10-Year Payment
$464.43
For comparison
Total Interest Over 25 Yrs
$19,234.75
If forgiven after plan term
Monthly Savings
$53.08
vs. 10-year standard plan
ICR Options Comparison
Option A: 20% Discretionary
$659.33
Income-based, adjusts with earnings
Option B: 12-Year Fixed
$411.35
Fixed amount regardless of income
25-Year Repayment Schedule (Snapshots)
YearRemaining BalanceCumulative InterestCumulative Paid
1$39,821.98$233.33$411.35
1$37,793.88$2,730.11$4,936.23
2$35,428.29$5,300.74$9,872.46
3$32,891.68$7,700.37$14,808.69
4$30,171.70$9,916.62$19,744.92
5$27,255.10$11,936.24$24,681.15
6$24,127.65$13,745.02$29,617.38
7$20,774.12$15,327.72$34,553.60
8$17,178.16$16,667.99$39,489.83
9$13,322.25$17,748.31$44,426.06
10$9,187.60$18,549.89$49,362.29
11$4,754.05$19,052.57$54,298.52
12$0.00$19,234.75$59,234.75
📊 Which Option is Better for You?

Choose Option A (20% Discretionary) if: Your income is expected to stay relatively stable or decrease; you want flexibility if income rises.

Choose Option B (12-Year Fixed) if: Your income is expected to grow significantly; you prefer predictable payments; you want to pay off debt faster.

Your calculator chose: Option B because it results in the lowest monthly payment ($411.35).

📋 ICR Program Essentials

Income-Contingent Repayment (ICR): Oldest income-driven plan; payment is the lesser of 20% of discretionary income OR a 12-year fixed amount.

Discretionary Income: Your AGI minus 100% of the Federal Poverty Line for your family size (different from PAYE/IBR which use 150%).

Forgiveness Timeline: 25 years of payments, then remaining balance (if any) is forgiven—but may be taxable.

Income Recertification: Required annually; payments recalculate when income or family size changes.

Eligible Loans: All federal loan types (Direct, FFEL, Perkins). Unlike newer plans, even PLUS loans can use ICR.

Tax Bomb Warning: Forgiven amount after 25 years is treated as taxable income in that year.

Planning notes, formulas, and examples

About the ICR Payment Calculator

Income-Contingent Repayment (ICR) is the oldest income-driven repayment plan and is the only IDR option available to Parent PLUS loan borrowers after consolidation. ICR sets your payment at the lesser of 20% of discretionary income or the amount you'd pay on a 12-year fixed plan adjusted for income.

While ICR generally results in higher payments than other IDR plans, it serves an important role as the gateway for Parent PLUS borrowers to access income-driven repayment and eventual loan forgiveness through PSLF.

This calculator estimates your ICR payment based on income and family size. If you're a Parent PLUS borrower considering consolidation for IDR access, or comparing ICR to other available plans, this calculator shows you what to expect.

When This Page Helps

ICR is rarely the best choice for direct borrowers who qualify for SAVE, IBR, or PAYE. However, it's essential for Parent PLUS borrowers, who must consolidate into a Direct Consolidation Loan and then enroll in ICR as their only IDR option. Understanding your ICR payment helps you evaluate whether consolidation makes financial sense.

How to Use the Inputs

  1. Enter your adjusted gross income.
  2. Select your family size.
  3. Enter your loan balance and interest rate.
  4. View your ICR payment at 20% of discretionary income.
  5. Compare against the standard 10-year payment.
  6. Review the 25-year forgiveness timeline.
Formula used
Discretionary Income = AGI − 100% × FPL ICR Payment = lesser of: 20% of discretionary income / 12, or 12-year fixed payment adjusted for income Forgiveness after 25 years

Example Calculation

Result: $659/month

With $60,000 AGI and family size 2, using 100% FPL (~$20,440), discretionary income is $39,560. ICR at 20% = $7,912/year or $659/month. The 12-year fixed on $40,000 at 7% is $420/month. ICR uses the lesser: $420/month in this case.

Tips & Best Practices

  • ICR is the only IDR plan available to Parent PLUS borrowers after loan consolidation.
  • Parent PLUS consolidation into ICR resets any prior payment counts toward forgiveness.
  • ICR uses 100% of FPL (not 150% or 225%), resulting in a larger discretionary income figure.
  • For non-Parent PLUS borrowers, SAVE, IBR, or PAYE will almost always offer lower payments.
  • ICR payments count toward PSLF for qualifying employers.
  • The 25-year forgiveness timeline is the longest of any IDR plan.

ICR: The Parent PLUS Gateway

While ICR is the least generous IDR plan for most borrowers, it serves a crucial role as the only income-driven option for Parent PLUS loans after consolidation. Parents with significant education debt and qualifying employment can use the ICR-to-PSLF pipeline to achieve tax-free forgiveness after 120 payments.

Understanding the ICR Double Calculation

ICR uniquely computes two payment amounts and uses the lower one. The first is 20% of discretionary income. The second is what you'd pay on a fixed 12-year plan multiplied by an income-based percentage factor. For most middle-income borrowers, the 12-year calculation produces the lower payment.

ICR vs Other Options for Parent Borrowers

Before consolidating Parent PLUS loans for ICR access, compare the total cost under ICR to simply paying on the standard or extended plan. ICR's 25-year timeline with high payments may not save much compared to aggressive standard repayment. The math changes significantly if PSLF applies.

Sources & Methodology

Last updated:

Frequently Asked Questions

  • ICR is primarily used by Parent PLUS borrowers who consolidate into a Direct Consolidation Loan. It's the only IDR plan available to them. For other borrowers, SAVE, IBR, or PAYE typically offer lower payments.

More in this topic

IBR Payment Calculator

Calculate your Income-Based Repayment plan payment. IBR caps payments at 10–15% of discretionary income with 20–25 year forgiveness.