Income-Driven Repayment (IDR) Calculator

About the Income-Driven Repayment (IDR) Calculator

Income-driven repayment (IDR) plans cap your federal student loan payment at a percentage of your discretionary income, making payments more manageable when income is low relative to debt. This calculator estimates payments under the major IDR structures modeled on this page so you can compare them side by side.

Your discretionary income is calculated as adjusted gross income (AGI) minus a poverty-guideline allowance for your family size and state. Each plan applies a different percentage to that amount, resulting in different monthly payments.

The worksheet compares SAVE-, IBR-, PAYE-, and ICR-style rules. Eligibility details, payment caps, and forgiveness timelines differ by plan, so the output should be used as a planning estimate rather than a servicer quote.

When This Page Helps

If your student loan payments under the standard plan consume more than 10–15% of your income, an IDR plan can provide immediate relief. However, choosing the wrong plan can cost you thousands over the long term. This calculator compares all four plans simultaneously, showing monthly payments and total cost so you can find the best fit for your financial situation.

How to Use the Inputs

1. Enter your adjusted gross income (AGI).
2. Select your family size (used to determine the poverty level threshold).
3. Enter your total federal student loan balance.
4. Enter the interest rate on your loans.
5. Compare monthly payments across SAVE, IBR, PAYE, and ICR plans.
6. Review the forgiveness timeline for each plan.

Example Calculation

Tips & Best Practices

• The SAVE plan generally offers the lowest payments for undergraduate borrowers at 5% of discretionary income.
• Recertify your income annually; failure to recertify can result in payments jumping to the standard amount.
• Long-term IDR forgiveness may receive different tax treatment depending on the law in effect when forgiveness occurs.
• Consider PSLF if you work in public service, as IDR payments count toward the 120 required payments.
• Filing taxes separately can lower your IDR payment by excluding your spouse's income (except under REPAYE/SAVE).
• Your payment will increase as your income grows; model future payments to prepare for increases.

Comparing IDR Plans at a Glance

The four plan structures on this page differ in payment percentage, payment cap, eligible loans, and forgiveness timeline. SAVE-style rules offer the lowest undergraduate percentage in the current model. IBR and PAYE style rules use 10% formulas for eligible newer borrowers and cap payments at the standard 10-year amount, while ICR uses a higher percentage and is often modeled for consolidated Parent PLUS situations.

How Income Certification Works

Each year, borrowers generally need to recertify income by providing tax information or pay stubs. If certification is missed, payments can revert to a higher amount and unpaid interest treatment can change.

Strategic Considerations for IDR

IDR plans are most beneficial when debt is high relative to income. If you owe more than your annual salary, IDR payments may be lower than standard payments and forgiveness scenarios become more relevant. If your debt-to-income ratio is low, the standard plan can cost less over time.

Frequently Asked Questions

• What is discretionary income for student loans?

  Discretionary income is your adjusted gross income (AGI) minus 150% of the federal poverty level for your family size and state. It represents the income the government considers available for loan repayment after covering basic living costs.

• Which IDR plan has the lowest payment?

  The SAVE plan typically offers the lowest payment at 5% of discretionary income for undergraduate loans. PAYE and new IBR are next at 10%. ICR has the highest payments at 20% of discretionary income.

• When is the remaining balance forgiven?

  Under SAVE, IBR, and PAYE: after 20 years for undergraduate loans and 25 years for graduate loans. Under ICR: after 25 years. SAVE also offers forgiveness after as few as 10 years for borrowers with original balances under $12,000.

• Is IDR forgiveness taxable?

  The federal tax treatment of long-term IDR forgiveness depends on the law in effect when forgiveness occurs. PSLF forgiveness is treated separately under federal law.

• Can I switch between IDR plans?

  Yes. You can switch IDR plans at any time by contacting your servicer. However, switching plans may capitalize unpaid interest and could affect your forgiveness timeline depending on the plan.

• What if my income increases significantly?

  Your IDR payment will increase at your next annual recertification. If your IDR payment exceeds the standard 10-year amount, it's capped at the standard amount under PAYE and IBR (but not under SAVE or ICR).