SAVE Plan Monthly Payment Calculator

What Is the SAVE Plan?

The SAVE Plan is an income-driven repayment (IDR) plan for federal student loans. It replaced the REPAYE plan and is designed to:

• Lower monthly payments
• Protect more of your income
• Prevent unpaid interest from growing your balance in many cases
• Offer loan forgiveness after a set period

Your monthly payment is based on your income and family size, not just your loan balance.

In short, the SAVE Plan adjusts your payment to match what you can reasonably afford.

What Is the SAVE Plan Monthly Payment Calculator?

The SAVE Plan Monthly Payment Calculator is a tool that estimates your monthly payment based on:

• Your state of residence
• Your tax filing status
• Your household size
• Your Adjusted Gross Income (AGI)
• Your total federal loan balance
• Your average interest rate

It uses official poverty guideline data and the SAVE Plan formula to estimate what you might owe each month.

It also compares your SAVE payment to the standard 10-year repayment plan. That way, you can see which one is lower.

What Information You Need to Use the Calculator

Before using the calculator, gather the following:

1. State of Residence

The poverty guideline varies slightly by state. Most states use the standard 48-state guideline. Alaska and Hawaii have different amounts.

2. Tax Filing Status

Choose one:

• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household

Your filing status affects which poverty guideline is used.

3. Household Size

Include:

• Yourself
• Your spouse (if applicable)
• Any dependents

Household size directly affects your protected income amount.

4. Adjusted Gross Income (AGI)

This is the most important number.

You can find your AGI on:

• IRS Form 1040, Line 11

Your AGI determines your discretionary income.

5. Total Federal Student Loan Balance

This is used to calculate your standard 10-year payment for comparison.

6. Average Interest Rate

If you have multiple loans, use a weighted average rate.

How the SAVE Plan Payment Is Calculated

The calculator follows three main steps.

Step 1: Find the Poverty Guideline

Each filing status and household size has a poverty guideline amount.

Example (simplified):

• Single person household: $15,180
• Family of four: $31,500

The SAVE Plan protects 225% of the poverty guideline.

So if the poverty guideline is $15,180:

225% of that is:

15,180 × 2.25 = 34,155

That amount is protected income.

Step 2: Calculate Discretionary Income

Discretionary income is:

AGI − (225% of Poverty Guideline)

If your AGI is $45,000:

45,000 − 34,155 = 10,845

If the result is negative, your discretionary income becomes $0.

That is why some borrowers qualify for a $0 payment.

Step 3: Calculate 10% of Discretionary Income

Under the SAVE Plan:

10% of discretionary income ÷ 12 months

Using the example above:

10,845 × 0.10 = 1,084.50 per year
1,084.50 ÷ 12 = 90.38 per month

Your estimated monthly payment would be about $90.

Standard 10-Year Payment Comparison

The calculator also computes your standard 10-year repayment amount using your:

• Loan balance
• Interest rate
• 120-month term

This uses the standard loan amortization formula.

Then it compares:

• Your SAVE payment
• Your standard payment

Important Rule

Your SAVE payment will never exceed the standard 10-year payment.

If your income-based payment is higher than the standard amount, your payment is capped at the standard amount.

What If Your Payment Is $0?

This can happen if:

Your AGI ≤ 225% of the poverty guideline

That means your discretionary income is zero.

If your calculated payment is $0:

• You are still considered in repayment
• Interest benefits may apply under SAVE
• You must recertify your income each year

For many borrowers, this is the biggest advantage of the SAVE Plan.

What Happens If Your Income Changes?

The calculator also shows income scenarios.

If Your Income Decreases

• Your payment decreases
• It could drop to $0
• You can request recalculation if your income changes mid-year

If Your Income Increases

• Your payment increases
• It will not exceed the standard 10-year payment

Your payment adjusts with your financial situation. That flexibility is the core idea behind income-driven repayment.

Why Household Size Matters So Much

A larger household increases your poverty guideline amount.

That increases the protected income.

That lowers your discretionary income.

That lowers your monthly payment.

For example:

• Single borrower, AGI $60,000 → higher payment
• Family of four, AGI $60,000 → much lower payment

Same income. Different result.

Who Should Use the SAVE Plan Calculator?

This calculator is helpful if you:

• Recently graduated
• Had a drop in income
• Changed jobs
• Started a family
• Are considering switching repayment plans
• Want to compare SAVE vs standard repayment

It gives you a realistic estimate before you apply.

Important Disclaimer

This calculator provides an estimate only.

Your official monthly payment is determined by your federal loan servicer after you:

• Submit income documentation
• Certify your family size
• Complete the application process

Always confirm your exact payment with your loan servicer.

Practical Example: A Realistic Scenario

Let’s say:

• Filing Status: Single
• Household Size: 1
• AGI: $50,000
• Loan Balance: $35,000
• Interest Rate: 5.5%

The calculator would:

1. Find the poverty guideline
2. Multiply by 2.25
3. Subtract from AGI
4. Calculate 10%
5. Divide by 12
6. Compare with standard 10-year payment

You might see a SAVE payment around $100–$150 instead of $350+ under a standard plan.

That difference can change your monthly budget dramatically.

Key Takeaways

• The SAVE Plan bases payments on income, not loan balance alone.
• 225% of the poverty guideline is protected.
• Payments are 10% of discretionary income divided by 12.
• Payments can be $0.
• Payments are capped at the standard 10-year amount.
• You must recertify income annually.