Income-Driven Repayment (IDR) Calculator
Calculate your income-driven repayment plan payment based on AGI and family size. Compare IDR plans including SAVE, IBR, PAYE, and ICR.
PAYE Payment Calculator
Calculate your Pay As You Earn plan payment at 10% of discretionary income. See 20-year forgiveness timeline and standard payment cap.
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PAYE Monthly Payment⧉
$144.50
10% of discretionary income, capped at 10-year standard
Standard 10-Year Payment⧉
$583.36
Payment for comparison
Monthly Savings⧉
$438.86
vs. standard 75.00% less
Forgiveness After⧉
20 years
Up to 240 qualifying payments
Total Interest Paid⧉
$69,480.85
If forgiven after 20 years
Discretionary Income⧉
$17,340.00
Income minus 150% FPL
Monthly Payment Comparison
PAYE: $144.50
Standard: $583.36
20-Year Projection
| Year | Remaining Balance | Cumulative Interest | Total Paid |
|---|---|---|---|
| 1 | $56,039.61 | $2,773.61 | $1,734.00 |
| 2 | $57,132.41 | $5,600.41 | $3,468.00 |
| 3 | $58,281.12 | $8,483.12 | $5,202.00 |
| 4 | $59,488.59 | $11,424.59 | $6,936.00 |
| 5 | $60,757.85 | $14,427.85 | $8,670.00 |
| 6 | $62,092.04 | $17,496.04 | $10,404.00 |
| 7 | $63,494.49 | $20,632.49 | $12,138.00 |
| 8 | $64,968.70 | $23,840.70 | $13,872.00 |
| 9 | $66,518.32 | $27,124.32 | $15,606.00 |
| 10 | $68,147.23 | $30,487.23 | $17,340.00 |
| 11 | $69,859.48 | $33,933.48 | $19,074.00 |
| 12 | $71,659.33 | $37,467.33 | $20,808.00 |
| 13 | $73,551.26 | $41,093.26 | $22,542.00 |
| 14 | $75,539.99 | $44,815.99 | $24,276.00 |
| 15 | $77,630.46 | $48,640.46 | $26,010.00 |
| 16 | $79,827.89 | $52,571.89 | $27,744.00 |
| 17 | $82,137.74 | $56,615.74 | $29,478.00 |
| 18 | $84,565.77 | $60,777.77 | $31,212.00 |
| 19 | $87,118.02 | $65,064.02 | $32,946.00 |
| 20 | $89,800.85 | $69,480.85 | $34,680.00 |
📋 PAYE Program Details
Discretionary Income Calculation: AGI minus 150% of the Federal Poverty Line for your family size.
Payment Cap: PAYE payments are capped at the Standard 10-year fixed payment amount.
Income Recertification: Required annually; your payment adjusts if income changes.
Loan Forgiveness: After 240 consecutive qualifying payments (20 years), remaining balance is forgiven—potentially tax-free.
Interest Continues to Accrue: If your payment doesn't cover monthly interest, unpaid interest capitalizes (added to balance).
Eligible Loans: Direct Loans only (not PLUS loans or FFEL loans).
Planning notes, formulas, and examples
About the PAYE Payment Calculator
Pay As You Earn (PAYE) caps monthly student loan payments at 10% of discretionary income and does not allow the payment to exceed the standard 10-year amount. After 20 years of qualifying payments, any remaining balance is eligible for forgiveness under the rule set modeled on this page.
To qualify, borrowers generally must meet the program's borrower-date tests and demonstrate partial financial hardship. This worksheet computes a PAYE-style payment based on income and family size, compares it to the standard payment, and shows the simplified savings scenario used on the page.
It is most useful as a comparison worksheet alongside IBR- and other currently available IDR calculations.
When This Page Helps
PAYE balances lower payments, a hard cap at the standard payment, and a 20-year forgiveness horizon. For eligible borrowers with moderate income and high debt, it can be a useful comparison point when weighing PAYE against IBR and the other IDR options available when you apply.
How to Use the Inputs
- Enter your adjusted gross income.
- Select your family size.
- Enter your loan balance and interest rate.
- View your PAYE monthly payment.
- Compare against the standard 10-year payment cap.
- Review the 20-year forgiveness timeline.
Formula used
Discretionary Income = AGI − 150% × FPL
PAYE Payment = Discretionary Income × 10% / 12
Capped at standard 10-year payment
Forgiveness after 20 years (240 payments)Example Calculation
Result: $174/month
With $48,000 AGI and family size 2, the poverty-guideline allowance configured on this page produces discretionary income of about $17,340. PAYE-style treatment is about $145/month. The standard payment on $55,000 at 5% is about $583/month, so the modeled savings are roughly $438/month.
Tips & Best Practices
- PAYE requires partial financial hardship; if your income rises so PAYE exceeds the standard amount, you may lose eligibility.
- Married borrowers can file separately to exclude spouse income from the calculation.
- PAYE payment counts toward PSLF if you work for a qualifying employer.
- Unpaid interest on subsidized loans under PAYE is covered by the government for the first 3 years.
- The tax treatment of PAYE-style forgiveness depends on the law in effect when forgiveness occurs.
- Compare PAYE with the other IDR plans you currently qualify for in Loan Simulator, especially while SAVE remains affected by court actions.
PAYE: The Middle Ground
PAYE sits between IBR and SAVE in generosity. It offers lower rates than old IBR (10% vs 15%), a shorter forgiveness timeline (20 vs 25 years), and the security of a payment cap that SAVE lacks. For eligible borrowers, PAYE represents a well-balanced income-driven option.
PAYE and PSLF
PAYE is a qualifying plan for PSLF. Since PAYE payments are typically well below the standard amount for high-debt borrowers, combining PAYE with PSLF can result in paying far less than the loan balance over the 10-year PSLF period. The remaining balance is then forgiven under the separate PSLF rules.
Planning for PAYE Forgiveness
If you expect to receive PAYE-style forgiveness after 20 years without PSLF, plan for the possibility that tax treatment could differ from the assumptions built into this worksheet version. Review the rules in force when forgiveness approaches rather than relying on older summaries.
Sources & Methodology
Last updated:
Frequently Asked Questions
You must meet the borrower-date tests and demonstrate partial financial hardship.
PAYE and new IBR both charge 10% of discretionary income, but PAYE has a 20-year forgiveness timeline (vs 20 years for new IBR). Eligibility requirements differ: PAYE has stricter borrower requirements but identical payment mechanics.
If your income grows enough that your calculated PAYE payment exceeds the standard 10-year amount, you pay the standard amount. You remain on PAYE and continue accumulating payments toward forgiveness.
Yes. You can switch to any repayment plan at any time. Be aware that switching may capitalize accrued interest and could restart or affect your forgiveness countdown depending on the new plan.
The federal tax treatment of PAYE-style forgiveness depends on the law in effect when forgiveness occurs. PSLF forgiveness follows a separate federal tax treatment.
SAVE has been affected by ongoing court actions, so the comparison can change over time. PAYE is most useful if you want the certainty of a payment cap and you meet the borrower-date eligibility rules. Confirm the plans open to you in StudentAid.gov Loan Simulator on the date you apply.
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.
REPAYE / SAVE Payment Calculator
Calculate your SAVE plan payment (formerly REPAYE). Undergrad borrowers pay just 5% of discretionary income with no payment cap.