Calculate your Income-Based Repayment plan payment. IBR caps payments at 10–15% of discretionary income with 20–25 year forgiveness.
Income-Based Repayment (IBR) is one of the most widely used income-driven repayment plans for federal student loans. It caps your monthly payment at a percentage of your discretionary income, making it manageable for borrowers whose income is modest relative to their debt.
New borrowers (those who took out loans after July 1, 2014) pay 10% of discretionary income with forgiveness after 20 years. Older borrowers pay 15% with forgiveness after 25 years. In both cases, the payment is capped at the standard 10-year amount — your IBR payment will never exceed what you'd pay on the standard plan.
This calculator estimates your IBR payment, shows the cap comparison, and projects your forgiveness timeline. Use it alongside the other IDR calculators to find the plan that minimizes your total cost or maximizes your forgiveness benefit.
Students, parents, and educators all gain valuable perspective from precise ibr payment data when planning academic paths, managing workloads, or setting realistic performance goals. Return to this calculator each semester or grading period to stay on top of evolving academic targets.
IBR is a good fit for borrowers who need lower payments but want the security of a payment cap. Unlike SAVE, which has no cap, IBR ensures your payment never exceeds the standard 10-year amount. This makes IBR particularly appealing for borrowers whose income may grow significantly and who want predictable maximum exposure.
Discretionary Income = AGI − 150% × FPL IBR Payment = Discretionary Income × 10% (new) or 15% (old) / 12 Capped at standard 10-year payment amount
Result: $228/month (IBR) vs $488/month (standard)
With $50,000 AGI and family size 1, discretionary income is approximately $27,410. New IBR at 10% = $2,741/year or $228/month. The standard 10-year payment on $45,000 at 5.5% is $488/month, so IBR saves $260/month.
One of IBR's key features is the payment cap. Your monthly payment can never exceed what you'd pay on the standard 10-year plan. As your income grows, your IBR payment increases but stops at the standard amount, ensuring predictability. If your income grows high enough that IBR exceeds the standard, you're effectively on the standard plan.
For most undergraduate borrowers, the SAVE plan now offers lower payments (5% vs 10%). However, IBR's payment cap provides certainty that SAVE lacks — SAVE has no payment ceiling. For graduate borrowers, IBR and PAYE are similar at 10%. ICR at 20% is rarely the best choice unless required (e.g., Parent PLUS consolidation).
IBR is ideal if you need affordable payments now, want the security of a payment cap, and have a growing income. It's especially powerful combined with PSLF for public service workers, as 10 years of IBR payments followed by forgiveness minimizes total out-of-pocket cost.
New IBR (borrowers after July 1, 2014) charges 10% of discretionary income with forgiveness after 20 years. Old IBR charges 15% with forgiveness after 25 years. The formula is otherwise the same.
New IBR and PAYE both charge 10% of discretionary income and cap at the standard payment. The main difference is eligibility: PAYE requires being a new borrower as of October 2007 with a new loan after October 2011, while new IBR only requires borrowing after July 2014.
Yes. If your income is below 150% of the federal poverty level, your discretionary income is $0, making your IBR payment $0. These $0 payments still count toward the forgiveness timeline and PSLF.
Under IBR, if your payment doesn't cover interest, the government pays the remaining interest on subsidized loans for the first 3 years. After that, unpaid interest accrues but doesn't capitalize unless you leave IBR.
IBR forgiveness after 20–25 years is currently tax-free through 2025 under the American Rescue Plan. After 2025, it may be taxable unless Congress extends the exemption. PSLF-related forgiveness on IBR is always tax-free.
Yes, you can switch at any time. However, switching plans may capitalize unpaid interest and could affect your forgiveness timeline. Compare all options carefully before switching.