Income-Based Payment Calculator
Estimate a monthly income-driven repayment amount from your discretionary income and your specific plan's percentage rate. Income-driven repayment plan rules and percentages can change and vary by plan (IBR, PAYE, SAVE, and others) — enter the percentage that applies to your specific plan from your loan servicer or studentaid.gov rather than assuming a fixed rate.
Two inputs, one payment
annual payment = discretionary income x plan% / 100
monthly payment = annual payment / 12The defaults, $24,000 of discretionary income at 10%, give $2,400 a year and $200 a month. The arithmetic is thin because the hard parts are not arithmetic: what counts as your discretionary income, and which percentage your plan applies. Both are set by rules that get revised, so the calculator asks you for them rather than assuming them.
Discretionary income is not your salary
Income-driven plans protect a slice of income first, based on family size and where you live, and charge the percentage only on what is left. Enter the wrong figure and the answer is wrong by a wide margin: $54,000 of pay with a $30,000 protected amount is $24,000 discretionary and $200 a month, while typing the $54,000 straight in returns $450. The percentage matters just as much - the same $24,000 at 5% is $100 a month, at 15% it is $300.
Frequently asked questions
What counts as discretionary income?
The part of your income above a protected allowance, not your whole salary. The allowance depends on household size and location and differs between plans, so take the figure from your servicer rather than guessing.
How is an income-driven monthly payment worked out?
Discretionary income times the plan's percentage, divided by twelve. At $24,000 and 10% that is $200 a month. Every extra $1,000 of discretionary income adds $8.33 a month at that percentage.
Will my payment cover the interest?
Not necessarily. A payment set by income can fall below the interest accruing each month, in which case the balance grows while you pay on time.