Income Based Repayment Calculator

What Is the Income Based Repayment Calculator?

The IBR calculator is a tool available at StudentAid.gov/idr that estimates your monthly payment using a formula defined by federal regulation. It is not a final bill, your loan servicer determines the exact amount after you apply, but the calculator gives a close approximation.

The formula works in three steps:

• Calculate discretionary income: Subtract 150% of the federal poverty guideline for your family size from your AGI. This is the portion of your income considered available for loan repayment.
• Apply the percentage: Multiply discretionary income by 10% (if you are a "new borrower" after July 1, 2014) or 15% (if you borrowed before that date). Divide by 12 to get the monthly amount.
• Cap at the Standard plan: If the calculated payment exceeds what you would pay under the 10-year Standard Repayment plan, the calculator caps it at the Standard amount.

The poverty guideline used by the Department of Education updates annually. For 2026, the 150% threshold for a single borrower is approximately $22,000 as of early 2026 (HHS Poverty Guidelines, January 2026). A borrower earning $60,000 AGI with a family size of one has discretionary income of approximately $38,000 per year, leading to an estimated monthly payment under new IBR of about $316.

Key inputs the calculator requires:

• Adjusted Gross Income (AGI) from your most recent federal tax return
• Family size (number of people for whom you provide more than half of financial support)
• State of residence (poverty guidelines vary slightly for Alaska and Hawaii)

The official calculator does not ask for loan balance, IBR payments are income-based, not balance-based, as long as the calculated amount is lower than the Standard payment.

IBR eligibility depends on two factors: your loan types and your income relative to the poverty guideline. Not all federal loans qualify, and partial financial hardship is required to stay on the plan.

Qualifying loans: Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans made to graduate students, Direct Consolidation Loans (if they did not repay a Parent PLUS loan), and FFEL Program loans held by the Department of Education. Parent PLUS loans and consolidation loans that repaid a Parent PLUS loan are not eligible for IBR.

Loans that do not qualify: Parent PLUS loans (including Consolidation loans that repaid Parent PLUS), Perkins loans, and private student loans. Borrowers with these loans cannot use IBR.

Partial Financial Hardship (PFH): You must demonstrate that your calculated IBR payment is less than what you would owe under the 10-year Standard Repayment plan. If your income rises later such that the IBR payment equals or exceeds the Standard amount, you remain on IBR but your payment is capped at the Standard amount, and unpaid interest continues to accrue.

What changed in 2026:

• The SAVE plan remains blocked by court order. Borrowers who enrolled in SAVE are in an interest-free forbearance, and their months do not count toward forgiveness. Transferring to IBR is one option to resume progress toward IDR forgiveness.
• The Department of Education updated its IDR application and account adjustment processes. Borrowers should submit a fresh IDR application at StudentAid.gov/idr rather than relying on pre-2024 applications.

Use the Student Loan Income Driven Repayment Calculator to compare IBR with other IDR plans like PAYE and REPAYE (now SAVE).

Getting an accurate estimate and enrolling in IBR requires following these steps. The calculator at StudentAid.gov is the only official tool.

1. Gather your tax return: Locate your most recent 1040. The AGI is on Line 11. If your income has significantly decreased since your last tax filing, you may still use that AGI, the servicer will not recalculate mid-year unless you recertify.
2. Go to StudentAid.gov/idr: The IBR calculator is part of the broader IDR calculator. Select "Income-Based Repayment" from the drop-down menu.
3. Enter your AGI and family size: The calculator uses the same fields as the application. Be honest, inflating family size beyond dependents you actually support is a violation of the Master Promissory Note.
4. Review the estimate: The tool shows your estimated monthly payment and the projected remaining balance after 20 or 25 years (the forgiveness timeline depends on whether you are a new borrower).
5. Apply online: After reviewing the estimate, click "LEARN MORE" to complete the IDR application. You will need your FSA ID and may need to provide income documentation via the IRS Data Retrieval Tool or a paper alternative.
6. Recertify annually: IBR requires annual income recertification. Missing the deadline causes your payment to revert to the Standard amount, and unpaid interest capitalizes. Set a reminder for the month before your recertification date.

The table below summarizes the key actions, deadlines, and forms involved in enrolling in IBR.

The IBR calculator provides an estimate, not a guarantee. Several factors can cause your actual payment to differ from the estimate, and some of them can cost you time toward forgiveness.

What the calculator does not account for:

• Spousal income: If you are married and file jointly, the calculator asks for joint AGI. If you file separately, only your income counts, but you forfeit certain tax credits and may owe more in tax. The calculator does not optimize between filing statuses.
• Interest capitalization: Unpaid interest may capitalize when you leave IBR, switch plans, or fail to recertify. The calculator does not model capitalization effects on balance growth.
• Loan consolidation: Consolidating loans resets the clock on IDR forgiveness, payments made before consolidation may not count. The calculator assumes you are not consolidating.

Mistakes to avoid:

• Assuming the calculator creates an application, it only generates an estimate. You must separately submit the IDR application at StudentAid.gov.
• Entering total household income instead of AGI. The calculator specifically needs AGI from your tax return, not gross income.
• Neglecting to recertify by the deadline. Late recertification resets your payment to the Standard amount, and unpaid interest capitalizes, increasing your balance.

You can explore alternative repayment strategies using the Reduce Debt 5 Debt Repayment Strategies That Could Change Yo tool.

Expert Tips

• Run the IBR calculator before and after any major income change, a job loss or salary increase can shift your payment significantly.
• If you are pursuing Public Service Loan Forgiveness, IBR qualifies as a qualifying repayment plan under PSLF rules.
• Use the official calculator only, third-party tools may not reflect current poverty guidelines or tax rates.
• Save your calculator estimate as a PDF before applying; it helps compare with your servicer's final number.

Mistakes to Avoid

• Entering income from a job you left, the calculator relies on your most recent tax return AGI.
• Assuming the calculator works for private student loans, it is for federal loans only.
• Forgetting to recertify on time, the penalty is immediate payment increase and interest capitalization.

Pros and Cons

👍 Pros: Payment is capped at a percentage of income; can lead to forgiveness after 20 or 25 years; counts toward PSLF. 👎 Cons: Requires annual recertification; unpaid interest can grow the balance; filing taxes separately adds complexity.

Bottom Line

The Income Based Repayment calculator is an essential starting point for any borrower considering IBR, but it is a planning tool, not a final bill. It works best for borrowers with moderate income relative to their loan balance and a clear plan for recertification and forgiveness. Borrowers with Parent PLUS loans or those nearing retirement should explore other options first.