Calculate your monthly repayment under the Income-Related Employment Support Allowance (REPAYE) scheme.
Your Estimated Monthly REPAYE Payment:
Understanding the REPAYE Calculator
The REPAYE (Revised PAYE) scheme is a system used in some countries (historically in the UK for certain public sector workers, and sometimes used conceptually for income-contingent loan repayments) to calculate income-related repayments based on gross income and family circumstances. The core principle is that your repayment amount should be a manageable percentage of your income, and it is adjusted based on factors like your total earnings and the number of dependants you support.
How the Calculation Works
The calculator estimates your monthly repayment using a simplified model that reflects the principles of REPAYE. The exact percentages and thresholds can vary, but the general logic involves:
Establishing a Threshold: A portion of your income is often considered non-repayable or is subject to a different calculation. This is sometimes referred to as a 'personal allowance' or a threshold based on dependants.
Calculating the Repayable Income: This is typically your gross income minus the established threshold.
Applying a Repayment Rate: A fixed percentage is applied to the repayable income to determine the total annual repayment.
Converting to Monthly: The annual repayment is then divided by 12 to get the monthly repayment amount.
For this calculator, we've used common illustrative figures:
Base Threshold: £12,000 per annum (this is a simplified general allowance).
Dependant Threshold Adjustment: An additional £3,000 per annum for each dependant.
Repayment Rate: 9% of the income above the combined threshold.
Repayment Period: While REPAYE schemes are often income-contingent (meaning they adjust with income), a repayment period is sometimes specified or considered for an estimated loan duration. This calculator uses it to provide context but the primary calculation is income-based.
Example Calculation
Let's consider an individual with:
Annual Gross Income: £35,000
Number of Dependants: 1
Repayment Period: 25 Years (for context)
1. Calculate Total Threshold:
Base Threshold (£12,000) + Dependant Adjustment (£3,000 x 1) = £12,000 + £3,000 = £15,000
2. Calculate Repayable Income:
Annual Gross Income (£35,000) – Total Threshold (£15,000) = £20,000
3. Calculate Annual Repayment:
Repayable Income (£20,000) x 9% = £1,800
Therefore, the estimated monthly REPAYE payment for this individual would be £150.00.
Who Should Use This Calculator?
This calculator is useful for individuals who are subject to income-contingent repayment schemes, such as:
Public sector employees in specific schemes (where REPAYE or similar income-related frameworks apply).
Individuals seeking to estimate potential repayments on income-contingent loans or financial obligations.
Anyone wanting to understand how their income and dependants might affect their repayment obligations under a REPAYE-like system.
Disclaimer: This calculator provides an estimate based on common REPAYE principles. Actual repayment amounts may vary based on specific scheme rules, tax laws, and individual circumstances. Consult official documentation or a financial advisor for precise figures.
function calculateRepaye() {
var annualIncome = parseFloat(document.getElementById("annualIncome").value);
var dependants = parseInt(document.getElementById("dependants").value);
var repaymentPeriodYears = parseInt(document.getElementById("repaymentPeriodYears").value); // Used for context in explanation
var resultDiv = document.getElementById("result");
var resultValue = document.getElementById("result-value");
var explanationDiv = document.getElementById("explanation");
// Clear previous results
resultValue.innerHTML = "";
explanationDiv.innerHTML = "";
resultDiv.style.display = "none";
var baseThreshold = 12000; // Illustrative annual threshold
var dependantThresholdPerPerson = 3000; // Illustrative additional annual threshold per dependant
var repaymentRate = 0.09; // 9%
// Validate inputs
if (isNaN(annualIncome) || annualIncome < 0) {
alert("Please enter a valid annual gross income.");
return;
}
if (isNaN(dependants) || dependants < 0) {
alert("Please enter a valid number of dependants.");
return;
}
if (isNaN(repaymentPeriodYears) || repaymentPeriodYears <= 0) {
alert("Please enter a valid repayment period in years.");
return;
}
var totalDependantThreshold = dependants * dependantThresholdPerPerson;
var totalThreshold = baseThreshold + totalDependantThreshold;
var repayableIncome = Math.max(0, annualIncome – totalThreshold); // Ensure repayable income is not negative
var annualRepayment = repayableIncome * repaymentRate;
var monthlyRepayment = annualRepayment / 12;
// Display results
resultValue.innerHTML = "£" + monthlyRepayment.toFixed(2);
explanationDiv.innerHTML = "Based on an annual gross income of £" + annualIncome.toLocaleString() +
" and " + dependants + " dependant(s), your income above the adjusted threshold (£" + totalThreshold.toLocaleString() + ") is £" +
repayableIncome.toLocaleString() + ". Applying the " + (repaymentRate * 100) + "% repayment rate results in an estimated monthly payment of £" +
monthlyRepayment.toFixed(2) + ". (Calculated for context over " + repaymentPeriodYears + " years).";
resultDiv.style.display = "block";
}