About the UK IVA Calculator
An individual voluntary arrangement (IVA) is a formal, legally binding deal with your creditors, set up by a licensed insolvency practitioner. You make one affordable monthly payment, usually for five or six years, and the unsecured debt left at the end is written off. This UK IVA calculator estimates that payment, the practitioner’s fees, how much your creditors receive and how much of your debt is written off.
Your monthly payment is normally your surplus income — what is left after reasonable living costs. Over the term, the insolvency practitioner takes a set-up (nominee) fee and an ongoing supervisor fee, often a percentage of what you pay in; the rest is shared among creditors as a dividend, expressed as pence in the pound. Any lump sums, such as equity release or a windfall, add to the pot.
Creditors holding 75% of the debt that vote must agree for the IVA to start. The figures here are illustrative: fees vary between firms, and your practitioner will set the payment from a detailed budget. IVAs are available in England, Wales and Northern Ireland; Scotland has the Protected Trust Deed instead.
With the default inputs, the estimated monthly iva payment is £250.00. Change any value above to recalculate instantly.
How to use the uk iva calculator
- 1Enter the total unsecured debt you want to include.
- 2Enter your monthly household income after tax and your reasonable living costs.
- 3Choose a 5- or 6-year term and add any lump sum you could pay in.
- 4Adjust the fees to match an insolvency practitioner’s quote.
- 5Review the monthly payment, pence in the pound and debt written off.
Formula and method
The monthly payment is your surplus income: household income after tax minus reasonable living costs. Over the IVA term (usually 60 or 72 months) the total paid in is that payment times the number of months plus any lump sums. The insolvency practitioner’s fees are modeled as a fixed set-up fee plus a supervisor fee charged as a percentage of everything paid in.
What remains is distributed to creditors, capped at the debt owed. Dividing it by the debt gives the pence-in-the-pound dividend, and the balance of the unsecured debt is written off when the IVA completes successfully. Real IVAs can include annual payment reviews and increases if income rises, which this estimate does not model.
- Payment
- Monthly IVA contribution (surplus income)
- s
- Supervisor fee as a decimal share of payments
- Nominee
- Set-up fee for proposing the IVA
- Debt
- Total unsecured debt included in the IVA
Worked examples
£35,000 of debt with £250 a month surplus
£250 a month for 60 months is £15,000. Fees of £1,500 plus 15% (£2,250) total £3,750, leaving £11,250 for creditors — about 32p in the pound. The remaining £23,750 would be written off at the end.
6-year IVA with a £5,000 equity lump sum
£400 a month for 72 months plus £5,000 is £33,800 paid in. Fees of £1,500 + 15% come to £6,570, so creditors receive £27,230 (about 45p in the pound) and £32,770 is written off.
Surplus large enough to repay in full
£400 a month over five years is £24,000 — after fees, more than enough to clear £12,000. Creditors would expect full repayment, so an IVA is not the right tool; a debt management plan would clear it sooner.
Frequently asked questions
How is an IVA monthly payment calculated?+
The insolvency practitioner builds a budget of your household income and reasonable living costs. What is left — your surplus income — usually becomes the monthly payment, and it can be reviewed each year if your income changes.
How much debt is written off in an IVA?+
It depends on what you can pay and the fees. Many IVAs pay creditors well under half of the debt, and the rest is written off when the arrangement completes successfully, typically after five or six years.
How many creditors need to agree to an IVA?+
GOV.UK says the IVA will start if creditors holding 75% of your debts agree to it; in practice this is measured by the value of debts of the creditors who vote. Once approved it binds all the unsecured creditors who were included, even those who voted against.
What fees does an IVA have?+
There are usually two: a set-up (nominee) fee and an ongoing supervisor fee taken from each payment. Both normally come out of your monthly payments rather than being paid separately. Ask the practitioner to confirm all costs in writing before agreeing.
What happens to my home in an IVA?+
You normally keep your home, but if you have significant equity you may be asked to try to release some of it, usually towards the end of the IVA, or to extend the arrangement by up to 12 months instead.
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.