Income-Contingent Calculator 2026 — ICR Student Loan Payment ★★★★☆

What Is Income-Contingent Repayment (ICR)?

Income-Contingent Repayment (ICR) is a federal student loan repayment plan that bases your monthly payment on your income, family size, and loan balance. It is one of several income-driven repayment (IDR) options available to US Direct Loan borrowers [citation:2].

Under ICR, you pay the lesser of two amounts: 20% of your discretionary income, or the amount you would pay on a 12-year fixed repayment plan adjusted by an income percentage factor. This dual-formula structure makes ICR unique among IDR plans [citation:2].

How the 2026 ICR Formula Works

The Department of Education publishes annual updates to the ICR formula. For 2026–2027, the key components are [citation:1]:

Step 1: Calculate Your 12-Year Fixed Payment

This is the monthly payment you would make on a standard 12-year amortization schedule. The formula is:

M = P × [ (I/12) / (1 − (1 + I/12)^−144) ]

Where P = principal balance, I = annual interest rate (as decimal), and 144 = number of months in 12 years [citation:1].

Step 2: Apply the Income Percentage Factor

Multiply your 12-year fixed payment by an income percentage factor that corresponds to your AGI. This factor increases as your income rises. For example, at an AGI of $35,104 (single), the 2026 factor is approximately 71.89% [citation:1].

Step 3: Calculate 20% of Discretionary Income

Discretionary income = AGI − 100% of the HHS poverty guideline for your family size and state. Multiply by 20%, then divide by 12 for a monthly amount [citation:2].

Step 4: Choose the Lesser Amount

Your ICR payment is whichever of Step 2 or Step 3 is lower. This ensures you never pay more than 20% of discretionary income, but also never more than your income-adjusted 12-year fixed payment [citation:2].

2026 Poverty Guidelines for ICR

ICR uses 100% of the HHS poverty guideline for your family size and state. For 2026, the guidelines for the 48 contiguous states and DC are approximately [citation:1]:

• Family of 1: $15,960
• Family of 2: $21,540 (estimated)
• Family of 3: $27,120 (estimated)
• Family of 4: $32,700 (estimated)

Alaska and Hawaii have higher poverty guidelines. The calculator above automatically adjusts based on your state selection.

ICR Forgiveness and PSLF

Under ICR, any remaining balance after 25 years of qualifying payments is forgiven. However, forgiven amounts may be taxable as income unless you qualify for Public Service Loan Forgiveness (PSLF) [citation:2].

PSLF forgives your remaining balance after 10 years (120 payments) if you work full-time for a qualifying government or nonprofit employer. ICR payments count toward PSLF [citation:2].

Important 2026 Changes: ICR Is Sunsetting

Due to the One Big Beautiful Bill Act (OBBBA), ICR will be eliminated by July 1, 2028 [citation:6]. Key points for borrowers:

• Existing ICR borrowers can remain on the plan until July 1, 2028 [citation:6].
• New borrowers after July 1, 2026 are not eligible for ICR [citation:6].
• The new Repayment Assistance Plan (RAP) replaces ICR and other IDR plans for new borrowers [citation:4].
• If you're on ICR and want to maximize forgiveness, consider whether switching to IBR (if eligible) makes sense before the sunset [citation:6].

Should You Choose ICR?

ICR may be right for you if [citation:2]:

• You have a high loan balance relative to income and need a lower monthly payment.
• You're pursuing PSLF and need qualifying payments.
• You have Direct Consolidation Loans that include PLUS loans (ICR accepts these, unlike PAYE).
• You're an existing borrower who can still access ICR before the 2028 sunset.

However, ICR generally offers higher payments than PAYE or IBR for most borrowers because it uses 20% of discretionary income (vs. 10% for PAYE) [citation:7]. Consider comparing all available plans before committing.