Calculate your Income-Contingent Repayment plan payment. ICR charges 20% of discretionary income with 25-year forgiveness for federal loans.
Income-Contingent Repayment (ICR) is the oldest income-driven repayment plan and is the only IDR option available to Parent PLUS loan borrowers after consolidation. ICR sets your payment at the lesser of 20% of discretionary income or the amount you'd pay on a 12-year fixed plan adjusted for income.
While ICR generally results in higher payments than other IDR plans, it serves an important role as the gateway for Parent PLUS borrowers to access income-driven repayment and eventual loan forgiveness through PSLF.
This calculator estimates your ICR payment based on income and family size. If you're a Parent PLUS borrower considering consolidation for IDR access, or comparing ICR to other available plans, this tool shows you what to expect.
Students, parents, and educators all gain valuable perspective from precise icr 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.
ICR is rarely the best choice for direct borrowers who qualify for SAVE, IBR, or PAYE. However, it's essential for Parent PLUS borrowers, who must consolidate into a Direct Consolidation Loan and then enroll in ICR as their only IDR option. Understanding your ICR payment helps you evaluate whether consolidation makes financial sense.
Discretionary Income = AGI − 100% × FPL ICR Payment = lesser of: 20% of discretionary income / 12, or 12-year fixed payment adjusted for income Forgiveness after 25 years
Result: $659/month
With $60,000 AGI and family size 2, using 100% FPL (~$20,440), discretionary income is $39,560. ICR at 20% = $7,912/year or $659/month. The 12-year fixed on $40,000 at 7% is $420/month. ICR uses the lesser: $420/month in this case.
While ICR is the least generous IDR plan for most borrowers, it serves a crucial role as the only income-driven option for Parent PLUS loans after consolidation. Parents with significant education debt and qualifying employment can use the ICR-to-PSLF pipeline to achieve tax-free forgiveness after 120 payments.
ICR uniquely computes two payment amounts and uses the lower one. The first is 20% of discretionary income. The second is what you'd pay on a fixed 12-year plan multiplied by an income-based percentage factor. For most middle-income borrowers, the 12-year calculation produces the lower payment.
Before consolidating Parent PLUS loans for ICR access, compare the total cost under ICR to simply paying on the standard or extended plan. ICR's 25-year timeline with high payments may not save much compared to aggressive standard repayment. The math changes significantly if PSLF applies.
ICR is primarily used by Parent PLUS borrowers who consolidate into a Direct Consolidation Loan. It's the only IDR plan available to them. For other borrowers, SAVE, IBR, or PAYE typically offer lower payments.
ICR sets your payment at the lesser of 20% of discretionary income (AGI minus 100% of FPL) divided by 12, or the amount on a 12-year fixed repayment plan adjusted by an income percentage factor. Most borrowers pay the 12-year fixed amount.
Yes. Parent PLUS borrowers can consolidate into a Direct Consolidation Loan, enroll in ICR, and make 120 qualifying payments while working for a qualifying employer to receive PSLF. However, consolidation resets the payment count.
ICR uses 20% of discretionary income (vs 5–10% for other plans) and defines discretionary income using 100% of FPL (vs 150–225% for other plans). Both factors increase the payment amount compared to SAVE, IBR, or PAYE.
ICR forgiveness after 25 years is currently tax-free through 2025. After that, it may be taxable unless the exemption is extended. PSLF forgiveness through ICR is always tax-free.
Direct borrowers (non-Parent PLUS) can switch to any IDR plan. However, consolidated Parent PLUS loans can only use ICR among IDR plans. This limitation is a key consideration before consolidating.