Income-Driven Repayment Calculator
Income-driven repayment (IDR) plans base your federal student loan payment on your income and family size instead of your balance. This calculator estimates Income-Based Repayment (IBR), which remains available in 2026 after the SAVE plan was blocked. Your IBR payment is 10% of your discretionary income (AGI minus 150% of the poverty line for your family size), capped at the 10-year Standard payment, with forgiveness after 20 or 25 years. Enter your income, family size, and loan details. The new Repayment Assistance Plan (RAP) launches 2026-07-01; it is described below. Figures are sourced from the Department of Education and HHS.
With $55,000 AGI and a family of 2, your estimated IBR payment is $187.83/month (10% of $22,540.00 discretionary income), versus a $510.97 standard payment.
How income-based repayment (IBR) works
discretionary income = AGI - 150% x poverty line for family size
IBR payment = min( 10% x discretionary / 12 , 10-year Standard payment )
remaining balance forgiven after 20 years (or 25 for older loans)
The new Repayment Assistance Plan (RAP)
Income-Driven Repayment for 2026. The SAVE plan has been blocked by the courts and is being phased out. This tool computes Income-Based Repayment (IBR), which remains available: your monthly payment is 10% (borrowers on/after 1 July 2014) or 15% (earlier borrowers) of your discretionary income, where discretionary income = AGI minus 150% of the poverty line for your family size, and the payment is capped at the 10-year Standard payment. IBR is forgiven after 20 or 25 years. The new Repayment Assistance Plan (RAP), created by the One Big Beautiful Bill Act, is available from 1 July 2026 (1-10% of income by tier, minus $50/dependent, forgiveness after 360 payments); its exact income tiers are still in rulemaking, so this tool describes RAP but does not yet compute it. FPL uses the 2026 HHS guidelines (effective January 2026, Federal Register 2026-00755). Sources: U.S. Dept of Education, HHS.
Why two borrowers with the same salary can pay different amounts
The number that surprises borrowers is how much family size and geography move the payment. Your IBR bill is 10% of discretionary income, and discretionary income is your AGI minus 150% of the federal poverty line for your household. Because that poverty line rises with each dependent, and is set higher for Alaska and Hawaii, a family of four in Anchorage shields far more income than a single filer in the lower 48 earning the same salary. Two people with identical loans and identical paychecks can owe very different amounts.
A second point most tools skip: your IBR payment is capped at the 10-year Standard amount. If your income is high relative to your balance, the percentage-of-income formula can exceed the Standard payment, so you simply pay the Standard figure instead and IBR offers you no monthly relief at all. Run the numbers before you switch plans.
Watch the plan reshuffle underway in 2026. The SAVE plan has been struck down in court and its borrowers are being moved onto legal plans such as IBR, while payments still count toward Public Service Loan Forgiveness. Meanwhile the Repayment Assistance Plan (RAP) opens on July 1, 2026 with payments of 1% to 10% of income, a $50 reduction per dependent, and unpaid interest waived when you pay on time. Enter your AGI, not your gross pay, or you will overstate every figure here.
Income-driven repayment: frequently asked questions
What is income-driven repayment?
Income-driven repayment (IDR) plans set your federal student loan payment based on your income and family size, not your balance. This calculator estimates Income-Based Repayment (IBR): your payment is 10% (or 15% for older borrowers) of your discretionary income, and any balance is forgiven after 20 or 25 years.
What is discretionary income?
For IBR, discretionary income is your adjusted gross income (AGI) minus 150% of the federal poverty line for your family size. Only that amount is used to set your payment, so a larger family or lower income means a lower payment. For example, $55,000 AGI for a family of 2 gives $22,540.00 of discretionary income and a $187.83/month IBR payment.
What happened to the SAVE plan?
The SAVE plan was blocked by the courts and is being phased out; borrowers are being moved to a legal plan such as IBR or the Standard plan. This calculator uses IBR, which remains available. Payments made under IBR still count toward Public Service Loan Forgiveness (PSLF).
What is the new Repayment Assistance Plan (RAP)?
RAP is a new income-driven plan created by the One Big Beautiful Bill Act, available from 2026-07-01. Payments are 1% to 10% of income depending on your income, reduced by $50.00/month per dependent, with forgiveness after 360 payments (30 years) and unpaid interest waived on on-time payments. The exact income tiers are still being finalized in rulemaking, so this tool describes RAP but computes IBR; see studentaid.gov for RAP once its tiers are published.
Official sources
- IBR formula and IDR plans: U.S. Department of Education (studentaid.gov); RAP: studentaid.gov repayment plans.
- 2025 federal poverty guidelines: HHS ASPE. As at 15 July 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 15 July 2026. See our methodology. An estimate, not financial advice; your servicer sets your official payment.