Income Driven Repayment Calculator

What Is an Income Driven Repayment Calculator?

An income driven repayment calculator is a tool that estimates your monthly student loan payment under IDR plans. These plans adjust what you owe each month based on what you earn and how many people depend on your income.

Instead of asking only for your loan balance, the calculator focuses on:

• Your Adjusted Gross Income (AGI)
• Your family size
• Your state of residence
• Your loan type mix (undergraduate vs graduate loans)

The goal is simple: estimate a payment that fits your financial reality, not a fixed schedule that ignores it.

Why Income Driven Repayment Matters

Federal student loans are different from most other debt. With IDR plans:

• Payments can be as low as $0
• Unpaid interest may be subsidized
• Monthly payments count toward loan forgiveness
• Payments adjust when your income changes

For borrowers with modest income, variable income, or large balances, IDR can be the difference between staying current and falling behind.

Understanding the SAVE Plan

The calculator you shared is designed for the SAVE Plan, which is currently the most borrower-friendly income driven repayment option.

Key features of the SAVE Plan include:

• Payments based on discretionary income
• 225% of the federal poverty guideline is protected
• 5% rate for undergraduate loans
• 10% rate for graduate loans
• A weighted rate if you have both types
• Interest above your payment is covered by the government
• A $0 payment still counts toward forgiveness

This calculator estimates your payment using those rules.

What Information the Calculator Uses

Let’s break down each input in simple terms.

Adjusted Gross Income (AGI)

This is your income after certain tax adjustments. You can find it on your most recent tax return.

If your income has dropped since you last filed taxes, your real payment may be even lower once you officially recertify.

Family Size

Family size includes:

• You
• Your spouse (if applicable)
• Any dependents you support

A larger family size increases the income amount that is protected from repayment.

State of Residence

Federal poverty guidelines vary by location. The calculator accounts for this by offering:

• Contiguous 48 states and Washington, DC
• Alaska
• Hawaii

Alaska and Hawaii have higher poverty thresholds, which often leads to lower IDR payments.

Loan Type Mix (Undergrad vs Graduate)

The SAVE Plan charges different rates depending on the type of loans you have:

• Undergraduate loans: 5%
• Graduate loans: 10%

If you have both, the calculator applies a weighted average. For example:

• 70% undergrad and 30% graduate loans
• Rate becomes 6.5%, not a flat number

The slider in the calculator handles this automatically.

How the Calculator Works Behind the Scenes

The results section shows the math so you can see exactly how your payment is calculated.

Here is the step-by-step logic in plain terms.

Step 1: Find the Poverty Line

The calculator starts with federal poverty data based on your state and family size.

Example:

• Family size: 2
• State: Contiguous 48
• Base amount plus per-person increase gives your poverty line

Step 2: Apply the SAVE Exemption

The SAVE Plan protects 225% of the poverty line.

That protected amount is subtracted from your income.

Step 3: Calculate Discretionary Income

Discretionary income equals:

AGI − 225% of poverty guideline

If the result is negative, it becomes $0.

Step 4: Apply the Loan Rate

The calculator applies:

• 5% for undergrad loans
• 10% for grad loans
• Or a weighted mix of both

Step 5: Convert to Monthly Payment

The annual payment is divided by 12 to show your estimated monthly payment.

Example Calculation

Here’s a simple example to make it real.

• AGI: $45,000
• Family size: 1
• State: Contiguous 48
• Loans: 100% undergraduate

Result:

• A large portion of income is exempt
• Discretionary income is reduced
• Payment may be very low or even $0

If the result is $0, it still counts as a qualifying payment toward forgiveness.

What Makes This Calculator Useful

This income driven repayment calculator stands out because it:

• Shows the actual math
• Accounts for loan type differences
• Uses modern SAVE Plan rules
• Explains why your payment is what it is
• Helps you plan without committing to anything

It’s designed for clarity, not confusion.

Important Things to Keep in Mind

• This is an estimate, not an official servicer calculation
• Poverty guidelines change each year
• Payments may change if your income or family size changes
• Official enrollment requires submitting income documentation

Even with those limits, a calculator like this gives you a strong planning baseline.

Who Should Use an Income Driven Repayment Calculator?

This tool is especially helpful if you:

• Are unsure what IDR payment to expect
• Are considering switching repayment plans
• Have a mix of undergraduate and graduate loans
• Want to understand SAVE Plan benefits
• Are planning for long-term forgiveness

If student loans feel unpredictable, this calculator brings structure and clarity.