IBR Calculator: Income-Based Repayment Plan
Estimate your monthly Income-Based Repayment (IBR) student loan payment using the current 10%/15% discretionary-income formula and 2026 HHS poverty guidelines. Free, updated for OBBBA.
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Additional Details
Estimated Monthly IBR Payment
$258.83
Estimated • Based on your inputs
Years Until Forgiveness
20
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
Income-Based Repayment (IBR) survived the One Big Beautiful Bill Act's (OBBBA) elimination of SAVE, PAYE, and ICR (all fully phased out by July 1, 2028) and remains one of only three federal repayment options after OBBBA, alongside the new Tiered Standard plan and RAP — but unlike those two, IBR stays open to borrowers with loans first disbursed before July 1, 2026. Your monthly payment is 10% (if you first borrowed on or after July 1, 2014 — "New IBR") or 15% (if before that date — "Old IBR") of your discretionary income, defined as your AGI minus 150% of the HHS poverty guideline for your family size and state (separate, higher guidelines apply in Alaska and Hawaii). If your AGI is at or below 150% of the guideline, your payment is $0. Payments are recalculated annually as your income and family size change. Remaining balances are forgiven after 240 payments (20 years, New IBR) or 300 payments (25 years, Old IBR) of consistent payments — or after 120 qualifying payments (10 years) if you're pursuing Public Service Loan Forgiveness, since IBR payments count toward PSLF. OBBBA also waived the old "partial financial hardship" test, so any borrower can enroll in IBR regardless of income, not just those whose IBR payment would be lower than the Standard plan's. Note: unlike PSLF forgiveness (always tax-free by statute), IBR loan forgiveness after the 20/25-year term is taxable income starting in 2026, since the American Rescue Plan Act's temporary tax-free treatment expired December 31, 2025 and OBBBA did not renew it for IDR-based forgiveness.
How to Use This Student Loans Calculator
- 1
Enter your loan balance
Input the total outstanding balance across all your student loans. If you have multiple loans, combine federal and private balances for a complete picture.
- 2
Set your interest rate
Enter the weighted average interest rate across your loans. Federal Direct Loans for 2025–26 are around 6.53% (undergraduate). Private loans vary widely by lender and creditworthiness.
- 3
Choose a repayment plan
Compare Standard (10-year), Extended (25-year), Graduated, or income-driven plans (SAVE, PAYE, IBR, ICR). Income-driven plans cap payments at 10–20% of discretionary income.
- 4
Add extra payments (optional)
See how additional monthly payments accelerate payoff. Even $50/month extra on a $30K loan at 6% can save $2,500+ in interest and shave 2 years off repayment.
- 5
Review total interest paid
Compare the total cost under different repayment options. Lower monthly payments often mean dramatically higher total interest — the tradeoff is cash flow vs. total cost.
Example Calculation
Let's analyze a common student loan scenario for a graduate in a typical state.
A borrower has $35,000 in federal Direct Loans at a weighted average rate of 5.8%. Under the Standard 10-year plan, the monthly payment is approximately $386. Under the SAVE income-driven plan with a $45,000 salary, the payment drops to roughly $175/month — but extends repayment to 20+ years.
Result: Standard plan: $46,281 total paid ($11,281 interest). SAVE plan: ~$52,500 total paid, but monthly payments start much lower and increase with income. After 20 years of qualifying payments under SAVE, any remaining balance is forgiven — though forgiven amounts may be taxable. The right choice depends on your income trajectory and career plans.
What Affects Your Results
Interest Rate
Federal rates are set annually by Congress. Private rates depend on credit score, cosigner, and market conditions. A 2% rate difference on $30K adds ~$7,000 in total interest over 10 years.
Repayment Plan
Income-driven plans reduce monthly payments but extend repayment, often doubling or tripling total interest. Standard 10-year plans minimize total cost.
Income Growth
Income-driven payments increase as your salary grows. A fast-growing income may make standard repayment more cost-effective in the long run.
Loan Forgiveness Eligibility
PSLF (public service) and IDR forgiveness (20-25 years) can eliminate tens of thousands in remaining balance — but require consistent qualifying payments and employment.
State Tax Treatment
Some states tax forgiven student loan debt as income, while others exempt it. Check your state's rules before counting on forgiveness.
Tips & Best Practices
- Never miss a payment — set up autopay for a 0.25% interest rate reduction (offered by nearly all federal loan servicers and many private lenders).
- Check if your state offers student loan tax deductions beyond the federal $2,500 student loan interest deduction. Several states provide additional relief.
- If you work in public service (government, 501(c)(3) nonprofits), investigate Public Service Loan Forgiveness (PSLF) — tax-free forgiveness after 120 qualifying payments.
- Refinancing federal loans to a private lender can lower your rate but permanently eliminates access to income-driven repayment, PSLF, and federal forbearance/deferment protections.
- Pay more than the minimum, but specify that extra payments go toward principal — otherwise servicers may apply them to future payments, which doesn't reduce interest.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
What is Income-Based Repayment (IBR)?
IBR is a federal income-driven student loan repayment plan that caps your monthly payment at a percentage of your discretionary income (income above 150% of the poverty line for your family size) rather than a fixed amortized amount. It remains available after the OBBBA reforms, unlike SAVE, PAYE, and ICR, which are being phased out.
How is my IBR payment calculated?
Your discretionary income equals your AGI minus 150% of the HHS poverty guideline for your family size and state. Your payment is 10% of that amount per year (if you first borrowed on or after July 1, 2014) or 15% (if before), divided by 12 for a monthly figure. If your AGI is at or below 150% of the guideline, your payment is $0.
Is IBR still available after the OBBBA changes?
Yes. OBBBA eliminated new enrollment in SAVE, PAYE, and ICR, but IBR was preserved as one of the law's three post-reform repayment options (with the new Tiered Standard plan and RAP). IBR remains open to borrowers with loans first disbursed before July 1, 2026 — RAP and Tiered Standard are the only options for loans disbursed on or after that date.
Does the old "partial financial hardship" requirement still apply?
No. OBBBA waived the requirement that your IBR payment be lower than what you'd owe under the Standard plan to qualify. Any borrower with eligible loans can now enroll in IBR regardless of income.
Does IBR count toward Public Service Loan Forgiveness (PSLF)?
Yes. IBR is a PSLF-qualifying repayment plan, meaning your IBR payments count toward the 120 qualifying payments (10 years) needed for PSLF, which forgives your remaining balance tax-free.
Will my forgiven IBR balance be taxed?
If you're not pursuing PSLF, yes — starting in 2026, any balance forgiven after your 20- or 25-year IBR term is taxable federal income, since the American Rescue Plan Act's tax-free treatment of student loan forgiveness expired December 31, 2025 and OBBBA didn't renew it for IDR-based forgiveness. PSLF forgiveness remains tax-free by separate statute regardless of when it happens.
IBR vs. RAP — which is better for me?
It depends on your loan's origination date and your income. If your loans were disbursed before July 1, 2026, you can choose IBR; if on or after that date, you're limited to RAP or Tiered Standard. Where both IBR and RAP are options, run this calculator and our RAP Student Loan Calculator side by side — IBR's discretionary-income formula and RAP's full-AGI-bracket formula produce different payments depending on your income and dependents.
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