Idr Payment Calculator

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Reviewed for accuracy by David Chen, CFA.

Use the Income-Driven Repayment (IDR) Calculator to estimate your monthly loan payments under various federal plans (like SAVE, PAYE, and IBR), helping you budget and manage your student debt effectively based on your income and family size.

IDR Payment Calculator

Estimated Monthly IDR Payment
$0.00

IDR Payment Calculator Formula

Monthly IDR Payment = (Discretionary Income × Payment Rate) / 12

Where:
Discretionary Income = AGI - (Family Size × FPL × FPL Multiplier)

Formula Source: Federal Student Aid (FSA)

Variables Explained

  • Annual Gross Income (AGI): Your taxable income, typically found on your most recent federal tax return.
  • Family Size: The number of people in your household, including yourself, whom you support.
  • Poverty Guideline Multiplier: A factor (usually 150% or 225%) used to define the non-discretionary portion of your income.
  • Payment Rate: The percentage of your discretionary income that you must pay monthly (5%, 10%, 15%, or 20%) depending on the specific IDR plan.
  • Federal Poverty Line (FPL): The base FPL amount for a single person, which is adjusted for family size.

Related Calculators

What is an IDR Payment Calculator?

An Income-Driven Repayment (IDR) plan is a federal program designed to make student loan payments affordable based on the borrower’s income and family size. Unlike Standard Repayment Plans, which use a fixed schedule regardless of your job status, IDR plans cap your monthly payment at a percentage of your discretionary income.

The IDR Payment Calculator helps you forecast what your required monthly payment will be under one of these plans (e.g., IBR, PAYE, or SAVE). This is crucial for financial planning, especially for those in public service careers or those just starting out with lower incomes. The calculator simplifies the complex federal formulas into an easy-to-use tool.

How to Calculate Your IDR Payment (Example)

Let’s calculate the monthly payment for a borrower with an AGI of $75,000, a Family Size of 4, using the 150% FPL multiplier, and a 10% payment rate (FPL = $15,060).

  1. Determine the Non-Discretionary Income Threshold: Multiply the FPL by the family size and the multiplier: $15,060 (FPL) $\times$ 4 (Size) $\times$ 1.50 (Multiplier) = $\mathbf{\$90,360}$.
  2. Calculate Discretionary Income: Subtract the threshold from the AGI: $\$75,000$ (AGI) – $\$90,360$ (Threshold). Since the AGI is less than the threshold, the Discretionary Income is $\mathbf{\$0}$.
  3. Calculate Annual Payment: Multiply the Discretionary Income by the Payment Rate: $\$0 \times 10\% = \mathbf{\$0}$.
  4. Determine Monthly Payment: Divide the annual payment by 12: $\$0 / 12 = \mathbf{\$0.00}$. (The monthly payment is $\$0.00$ in this example, reflecting a common outcome for lower-income borrowers under IDR plans.)

Frequently Asked Questions (FAQ)

  • What is the difference between AGI and Gross Income? AGI (Adjusted Gross Income) is your gross income minus certain adjustments (like retirement contributions or student loan interest deductions). IDR plans always use AGI because it is the figure reported to the IRS.
  • How often do I need to recertify my IDR plan? You must typically recertify your income and family size annually. If you fail to recertify on time, your monthly payments may revert to the standard 10-year repayment amount, potentially increasing your monthly cost significantly.
  • Does the IDR calculator include loan principal and interest? No. IDR payments are based only on your income. The amount of principal and interest covered depends on the payment and the interest accrued. Any unpaid interest might be subsidized (covered) by the government depending on your specific plan (like SAVE).
  • Are all federal loans eligible for IDR? Most federal loans are eligible, including Direct Loans and some FFEL loans, though some require consolidation first. PLUS Loans and Perkins Loans sometimes have special rules.
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