About the Income-Driven Repayment Calculator
This income-driven repayment (IDR) calculator estimates what you would pay each month on federal Direct student loans when the payment is based on your income rather than your balance. Enter your adjusted gross income (AGI), family size, dependents, balance and rate, and it compares the Repayment Assistance Plan (RAP), Income-Based Repayment (IBR), Pay As You Earn (PAYE), Income-Contingent Repayment (ICR) and the 10-year Standard plan side by side — first-year payment, total you would repay, and any balance forgiven at the end.
The rules reflect the 2025 federal budget law (Public Law 119-21): RAP opens on July 1, 2026 and bases payments on 1%–10% of total AGI, less $50 a month per dependent, with a $10 minimum, unpaid interest waived and forgiveness after 30 years. Loans made on or after July 1, 2026 can use only RAP or a standard plan. Existing borrowers can keep IBR, while PAYE and ICR are being phased out by July 1, 2028. SAVE is no longer available and is not modeled.
Discretionary income for IBR and PAYE is AGI minus 150% of the HHS poverty guideline (100% for ICR). The built-in guideline is the 2026 figure ($15,960 plus $5,680 per extra person in the 48 contiguous states and DC; higher in Alaska and Hawaii); your servicer uses the guideline current when you certify income, which you can enter as an override. ICR is simplified to 20% of income above the guideline, without the alternative 12-year income-adjusted payment, so your real ICR payment may be lower. The projection grows your income each year by the rate you choose and holds the poverty line fixed, so treat it as an estimate — your servicer and the Loan Simulator on StudentAid.gov give official figures. Forgiven balances may be taxable income.
With the default inputs, the monthly payment (first year) is $229.17. Change any value above to recalculate instantly.
How to use the income-driven repayment calculator
- 1Enter your AGI from your most recent federal tax return.
- 2Enter your family size, number of dependents and state.
- 3Enter your total federal loan balance and weighted-average interest rate.
- 4Set an expected yearly income growth rate.
- 5Pick a plan to highlight and compare the table of all plans.
Formula and method
For IBR and PAYE, discretionary income is AGI minus 150% of the HHS poverty guideline (PG) for your family size; the monthly payment is 10% (15% for IBR borrowers before July 2014) of that ÷ 12, never more than the 10-year standard payment. ICR is modeled as 20% of AGI above 100% of the guideline. RAP uses a percentage p of your whole AGI: 1% for $10,001–$20,000, rising one point per $10,000 to 10% above $100,000, less $50 a month per dependent, with a $10 minimum.
The projection runs month by month: interest accrues at the monthly rate, payments cover interest first and then principal, and payments are recalculated each year as income grows. Under RAP, interest not covered by an on-time payment is waived, and if the payment reduces principal by less than $50 the government reduces it further so the total principal reduction equals $50 (or the payment, if smaller). Any balance left after 20, 25 or 30 years is shown as forgiven. The official ICR formula and spousal income rules are more complex than modeled here.
- AGI
- Adjusted gross income from your tax return
- PG
- HHS poverty guideline for your family size and state
- p
- RAP payment percentage (1%–10%) based on AGI band
Worked examples
Single borrower, $55,000 AGI, $45,000 at 6.5% (RAP)
RAP charges 5% of AGI in the $50,001–$60,000 band: $55,000 × 5% ÷ 12 = $229.17 a month. The 2026 poverty guideline for one person is $15,960, so discretionary income for IBR is $55,000 − $23,940 = $31,060. The 10-year standard payment would be $510.97. With 3% income growth the loan is repaid in about 16.75 years for roughly $77,800 in total.
Same borrower on new-borrower IBR
IBR for new borrowers charges 10% of discretionary income: $31,060 × 10% ÷ 12 = $258.83 a month, well below the $510.97 standard payment cap. With 3% raises the loan is repaid in about 17.3 years for roughly $80,473.
Family of four with two dependents, $70,000 AGI
The 2026 guideline for a family of four is $15,960 + 3 × $5,680 = $33,000; 150% of that is $49,500, so discretionary income is $20,500. PAYE takes 10% of that: about $170.83 a month. Under RAP, $70,000 falls in the $60,001–$70,000 band (6%), so the same family would pay $70,000 × 6% ÷ 12 − $100 = $250.
Frequently asked questions
What is the Repayment Assistance Plan (RAP)?+
RAP is the income-driven plan created by the 2025 budget law and available from July 1, 2026. Payments are 1% to 10% of AGI depending on income, minus $50 a month per dependent, with a $10 minimum. Unpaid interest is waived and any remaining balance is forgiven after 30 years of qualifying payments.
How is discretionary income calculated for IBR?+
Discretionary income is your adjusted gross income minus 150% of the HHS poverty guideline for your family size and state. For a single person in the 48 contiguous states using the 2026 guideline of $15,960, the protected amount is $23,940.
Which income-driven plans can I still choose?+
Borrowers with loans made before July 1, 2026 can generally use IBR or RAP, and those already on PAYE or ICR must move to another plan by July 1, 2028. Loans made on or after July 1, 2026 may use only RAP or a standard plan. SAVE has ended.
Is forgiven student loan debt taxable?+
The temporary federal tax exclusion for IDR forgiveness covered discharges through December 31, 2025. Balances forgiven under IDR after that may be treated as taxable income unless the law changes; PSLF forgiveness remains tax-free. Check current IRS guidance.
Does income-driven repayment count toward PSLF?+
Yes. Qualifying payments under IDR plans, including RAP, count toward Public Service Loan Forgiveness if you work full time for a qualifying employer. PSLF forgives the remaining balance after 120 qualifying payments, tax-free.
Is my spouse’s income included?+
If you file taxes jointly, your AGI includes your spouse’s income. Under IBR and PAYE, filing separately generally excludes your spouse’s income, which can lower your payment but may raise your tax bill. RAP counts spousal income if you file jointly.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.