Calculate your federal student loan payments under all Income-Based Repayment (IBR) plans with our free IBR payment calculator. This essential tool helps borrowers estimate income-driven repayment options for 2025, including the new SAVE Plan, to find the most affordable payment strategy.
This IBR calculator uses the latest 2025 federal poverty guidelines and formulas to estimate payments under all income-driven repayment plans:
Calculates discretionary income based on your AGI and family size
Compares all IDR plans including SAVE, IBR, PAYE, and ICR
Uses updated 2025 poverty guidelines for accurate calculations
Estimates potential loan forgiveness under each plan
Accounts for state differences in cost of living (AK & HI)
2025 IBR Payment Formula:
Monthly Payment = (AGI - (Poverty Guideline × 1.5 or 2.25)) × Percentage Factor ÷ 12
SAVE Plan: 5-10% of discretionary income above 225% of poverty line
IBR Plan: 10-15% of discretionary income above 150% of poverty line
Poverty guidelines updated annually by HHS
Why Use an IBR Payment Calculator?
Choosing the wrong repayment plan can cost thousands of dollars. Our income-based repayment calculator helps you:
For Recent Graduates
Find the most affordable payment based on your entry-level salary
Understand how family size affects your payments
Plan for future income changes
Determine if you qualify for $0 payments
For Mid-Career Borrowers
Compare plans as your income increases
Calculate the tax implications of forgiveness
Determine whether to switch to the SAVE plan
Plan for family changes that affect your payments
Understanding Income-Driven Repayment Plans in 2025
Our IBR payment calculator 2025 accounts for these key plan differences:
SAVE Plan (Replaces REPAYE)
Payment percentage: 5% for undergraduate, 10% for graduate loans
Forgiveness timeline: 20-25 years depending on loan types
IBR Plan
Payment percentage: 10% or 15% of discretionary income
Income exemption: 150% of poverty guideline
Eligibility: Must demonstrate partial financial hardship
Forgiveness timeline: 20-25 years
Key Factors Affecting Your IBR Payment
The calculate IBR payment tool considers these important variables:
Adjusted Gross Income (AGI): From your tax return, includes spouse's income if filing jointly
Family size: Everyone you support financially, including yourself
State of residence: Higher poverty guidelines for Alaska and Hawaii
Loan types: Different percentages for undergraduate vs. graduate loans
Tax filing status: Married filing separately may lower payments in some cases
Maximizing Your Student Loan Strategy
Our IBR calculator helps you optimize these key factors:
Payment minimization: Finding the plan with lowest monthly payment
Forgiveness optimization: Calculating total cost including potential forgiveness
Tax planning: Preparing for potential tax bomb upon forgiveness
Life changes: How marriage, children, or income changes affect payments
Common IBR Calculation Mistakes
Even with a good IBR calculator tool, watch for these errors:
Using gross income instead of AGI: AGI is typically lower after deductions
Miscounting family size: Only include dependents you financially support
Ignoring spouse's income: Married filing jointly requires including spouse's income
Forgetting annual recertification: Payments can change significantly each year
Pro Tip: The SAVE Plan's interest benefit prevents your balance from growing even if your payment doesn't cover the accruing interest. This can save borrowers thousands over the life of their loans compared to other IDR plans.
Frequently Asked Questions
How accurate is this IBR calculator?
Our IBR payment calculator provides estimates based on the latest 2025 federal poverty guidelines and official formulas from the Department of Education. Actual payments may vary slightly based on your specific loan details and servicer calculations.
Should I choose the plan with the lowest payment?
Not necessarily. While the lowest payment helps with cash flow, it may result in higher total costs over time due to interest accrual. Consider both monthly affordability and total repayment amount.
How does marriage affect my IBR payment?
If you're married and file taxes jointly, your spouse's income will be included in your AGI calculation, which will typically increase your payment. If you file separately, only your income is considered, but you may lose certain tax benefits.
When should I recertify my income?
You must recertify your income annually, about 30-60 days before your recertification date. Your servicer will notify you when it's time to recertify.
Student Loan Resources
For official information, consult these resources:
Federal Student Aid IDR Information (https://studentaid.gov/manage-loans/repayment/plans/income-driven)
SAVE Plan Details (https://studentaid.gov/announcements-events/save-plan)
Disclaimer: This calculator provides estimates for educational and general informational purposes only. Actual IBR payments may vary based on your specific financial situation, loan types, and servicer calculations. We are not affiliated with the U.S. Department of Education. Please consult official resources and your loan servicer for precise payment information and plan eligibility.