Income-Driven Repayment Calculator
Your Payment Is Set by Income, Not Balance
Under an income-driven repayment plan, the size of your federal student loan doesn't determine your monthly bill — your income and family size do. Two borrowers with wildly different balances but identical incomes and household sizes get the identical payment. That runs counter to how most people think about loan repayment, which is exactly why it's worth calculating precisely rather than guessing from a servicer's rough estimate.
The Formula
Monthly Payment = (Discretionary Income × Plan Percentage) / 12
Each plan uses its own multiplier of the federal poverty line and its own percentage of discretionary income:
| Plan | Protected income (% of poverty line) | % of discretionary income owed |
|---|---|---|
| SAVE (Saving on a Valuable Education) | 225% | 10% |
| PAYE (Pay As You Earn) | 150% | 10% |
| IBR (Income-Based Repayment) | 150% | 15% |
| ICR (Income-Contingent Repayment) | 100% | 20% |
The poverty line itself scales with household size: for the 48 contiguous states and DC, the 2024 base is $15,060 for a household of one, plus $5,380 for each additional family member (Alaska and Hawaii use higher base figures and per-person amounts).
SAVE Plan Payments by Income (Family of 1, 48 States)
| Annual income | Discretionary income | Monthly payment |
|---|---|---|
| $30,000 | $0.00 | $0.00 |
| $40,000 | $6,115.00 | $50.96 |
| $50,000 | $16,115.00 | $134.29 |
| $60,000 | $26,115.00 | $217.62 |
| $80,000 | $46,115.00 | $384.29 |
| $100,000 | $66,115.00 | $550.96 |
At $30,000 income, a single borrower's entire income falls below the SAVE plan's protected threshold of $33,885 (225% of the $15,060 poverty line), so the calculated payment is $0.
Where This Calculation Matters
- Choosing between plans — SAVE and PAYE protect more income at the same 10% rate, while ICR protects the least but caps at 20%; running the numbers for your actual income shows which plan is genuinely cheapest.
- Post-graduation budgeting — a payment tied to income rather than balance is far easier to plan around when starting a lower-paying first job.
- Family size changes — marriage or a new dependent raises the protected poverty line, which can lower the required payment even at the same income.
How to Use This Calculator
- Enter your annual gross income (AGI).
- Enter your family size, including yourself.
- Select your state group — the 48 contiguous states plus DC, Alaska, or Hawaii.
- Select the repayment plan: SAVE, IBR, PAYE, or ICR.
- Select Calculate to see your estimated monthly payment under that plan.
Related Calculations
If you're pursuing Public Service Loan Forgiveness on top of an income-driven plan, see the Loan Forgiveness Calculator to track your qualifying payment progress.