Calculate your federal student loan payments with our free ICR calculator. This essential tool helps borrowers estimate monthly payments under the Income-Contingent Repayment plan for 2025, providing accurate estimates based on your income, family size, and loan details.
This ICR repayment calculator uses the official 2025 federal guidelines to estimate your monthly payments under the Income-Contingent Repayment plan:
Calculates discretionary income based on your AGI and poverty guidelines
Determines monthly payment as 20% of your discretionary income
Adjusts for family size according to federal poverty guidelines
Accounts for loan types including Direct Loans, FFEL, and Parent PLUS loans
Projects forgiveness eligibility after 25 years of qualifying payments
2025 ICR Payment Formula:
Monthly Payment = 20% × (AGI - (Poverty Guideline × 1.5)) ÷ 12
For Parent PLUS loans: Payment calculated under alternative formula
Maximum term: 25 years before forgiveness
Why Use an ICR Calculator?
Understanding your repayment options is crucial for managing student debt. Our ICR student loan calculator helps you:
For Recent Graduates
Plan your budget based on expected income
Compare different income-driven repayment plans
Understand how family size affects payments
Project long-term repayment scenarios
For Borrowers Nearing Forgiveness
Estimate potential forgiveness amounts
Plan for possible tax implications
Evaluate whether to stay in ICR or switch plans
Understand how income changes affect payments
Understanding Income-Contingent Repayment in 2025
Our ICR calculator student loan tool accounts for these key aspects of the program:
Eligibility Requirements
Direct Loans: All Direct Loans are eligible for ICR
FFEL Loans: Must be consolidated into a Direct Consolidation Loan
Parent PLUS Loans: Must be consolidated to be eligible
Income documentation: Required annually for recertification
Payment Calculations
Discretionary income: Defined as AGI minus 150% of poverty guideline
Payment cap: Never more than standard 10-year plan amount
Annual recertification: Payments adjust as income changes
Married borrowers: Spouse's income may be included if filing jointly
Additional ICR Considerations
The student loan ICR calculator includes these important factors:
Loan forgiveness: After 25 years of qualifying payments
Tax implications: Forgiven amounts may be taxable income
Interest capitalization: Unpaid interest may be added to principal
Public Service Loan Forgiveness: ICR qualifies for PSLF after 120 payments
Income changes: Payments adjust annually based on income
ICR Compared to Other Repayment Plans
Our Parent PLUS loan ICR calculator helps you compare plans:
Standard Repayment: Fixed payments over 10 years
Graduated Repayment: Payments start low and increase over time
Income-Based Repayment (IBR): 10-15% of discretionary income
Pay As You Earn (PAYE): 10% of discretionary income
Revised Pay As You Earn (REPAYE): 10% of discretionary income
Common ICR Calculator Mistakes
Even with a good ICR calculator tool, watch for these errors:
Incorrect AGI: Using gross income instead of adjusted gross income
Wrong family size: Not counting all dependents correctly
Ignoring state differences: Poverty guidelines vary by state and family size
Forgetting recertification: Payments can increase if you don't recertify annually
Pro Tip: If you're pursuing Public Service Loan Forgiveness (PSLF), ICR may be a good option if you have high debt relative to income, as it can result in lower monthly payments than other income-driven plans.
Frequently Asked Questions
How accurate is this ICR calculator?
Our ICR payment calculator provides estimates within 5% of actual payments for most situations. Exact payments are determined by your loan servicer using official federal formulas.
Are ICR payments the same for all loan types?
No, Parent PLUS loans have a special calculation under ICR. The payment is based on what you would pay on a 12-year standard repayment plan adjusted according to your income.
How does marriage affect ICR payments?
If you're married and file taxes jointly, your spouse's income and loan debt will be included in the calculation. If you file separately, only your income is considered.
Can I switch to ICR from another repayment plan?
Yes, you can switch to ICR at any time without penalty. Contact your loan servicer to change your repayment plan.
ICR Resources
For official information about Income-Contingent Repayment, consult these resources:
Federal Student Aid ICR Information (https://studentaid.gov/manage-loans/repayment/plans/income-contingent)
National Student Loan Data System (https://nslds.ed.gov)
Disclaimer: This ICR calculator is for educational and general informational purposes only. The results provided are estimates based on the information you provide and current 2025 federal guidelines. Actual payments may vary based on your specific loan terms, exact income, and family circumstances. For exact payment amounts and official repayment plan information, please contact your loan servicer or visit the Federal Student Aid website.