Income-Driven Repayment (IDR) Calculator for Student Loans

👇 Try the IDR Calculator

Want a quick idea of what your student loan payment might look like?

Use the calculator below to estimate your monthly payment under RAP, PAYE, and IBR.

What This Calculator Does

This calculator estimates what your monthly student loan payment could look like under each Income-Driven Repayment (IDR) plan.

It is based on your Adjusted Gross Income (AGI), family size, and a few other key inputs that affect how IDR payments are calculated.

Your actual payment may vary slightly depending on how your loan servicer processes your application, but this should give you a clear and reliable estimate.

Calculations are believed to be correct. If you notice anything that doesn’t look right, please send an email to michael@dreambiggerfinancial.com.

Before You Go Any Further

Recent legislation brought major changes to federal student loan repayment, and eligibility now depends on whether you are considered a new borrower or an old borrower.

Starting July 1, 2026, Repayment Assistance Plan (RAP) is expected to become the default Income-Driven Repayment (IDR) plan for new borrowers.

Whether you can use older plans like Income-Based Repayment (IBR) or Pay As You Earn (PAYE) depends on which category you fall into.

So… which one are you?

New Borrower

You are considered a new borrower if you:

• • Take out any federal student loan on or after July 1, 2026, or
  • Complete a federal loan consolidation on or after July 1, 2026

As a new borrower, your repayment options are limited to:

• • Repayment Assistance Plan (RAP)
  • New Standard Repayment Plan

You will not be eligible for IBR or PAYE.

This is why consolidation timing matters.

A consolidation completed after July 1, 2026 can permanently change which repayment plans are available to you.

Old Borrowers

You are considered an old borrower if:

• • All of your federal student loans were taken out before July 1, 2026, and
  • You do not take out new loans or complete a consolidation on or after that date

As an old borrower, you are expected to retain access to a broader set of repayment options, including:

• • Income-Based Repayment (IBR)
  • Income-Contingent Repayment (ICR), until it is phased out in July 2028
  • Pay As You Earn (PAYE), until it is phased out in July 2028
  • Repayment Assistance Plan (RAP)
  • Old Standard Repayment Plan
  • Graduated Repayment
  • Extended Repayment

If you are already enrolled in IBR before July 2026, you can stay on it as long as you continue to meet the requirements.

Even if you are not on IBR today, you may still enroll later as long as you remain an old borrower and qualify.

PAYE is being phased out, and borrowers currently using PAYE are expected to transition to IBR or RAP over time.

Why This Matters

Your borrower status determines which repayment plans you can use, now and in the future.

Once you cross into new borrower status, there is no going back.

That is why repayment planning decisions like consolidation, plan selection, and timing should be made carefully and with the full picture in mind.

If you are unsure which category you fall into, or how these rules apply to your situation, getting clarity now can prevent expensive mistakes later.

Need help deciding?

Reach out for a custom plan.

How Income-Driven Repayment (IDR) Works

Let’s start with the basics.

Most people assume their student loan payment is based on how much they owe.

That is true under the 10-Year Standard Repayment Plan, which is the default option if you do nothing after finishing school.

Income-Driven Repayment (IDR) plans work differently.

Under IDR, your monthly payment is based primarily on:

• • Your income
    Higher income generally leads to a higher payment.

  • Your family size, as defined by the plan
    A larger family generally leads to a lower payment.

Your loan balance and interest rate usually do not determine your required monthly payment.

IDR is designed to adjust as your life changes.

Payments are often lower early in your career, when income is lower, and generally increase as your income grows over time.

This is what makes Income-Driven Repayment helpful early on. It is also why your payment later in your career may look very different than it does today.

An Example Using Dr. Patel

Dr. Patel is a first-year resident earning $60,000 with $200,000 in student loans.

Under PAYE or New IBR, his monthly payment is around $300.

That is manageable during training.

Later, when Dr. Patel becomes an attending and starts earning $300,000, that same plan recalculates based on his higher income.

Now his required monthly payment jumps to more than $2,000.

That is the tradeoff.

Income-Driven Repayment often keeps payments low early on, but required payments generally increase as income rises.

Understanding that shift ahead of time is key to choosing the right plan.

When You Owe More Than Your Friends

This is where Income-Driven Repayment starts to feel counterintuitive.

Dr. Patel’s peer, Dr. Williams, is also in residency and earns the same $60,000.

The difference?

Dr. Williams has $500,000 in student loans instead of $200,000.

So what happens to their monthly payments?

They are still the same.

• • Around $250 under RAP

  • Around $300 under PAYE or New IBR

  • Around $450 under Old IBR

Because Income-Driven Repayment plans are primarily based on income, not loan balance, two borrowers earning the same amount can have identical monthly payments, assuming the same family size.

IDR Plans Available Today

The student loan system has gone through a lot of changes, and it will likely continue to evolve.

For now, there are only a few Income-Driven Repayment (IDR) plans that most borrowers need to understand.

Which ones are available to you depends on your borrower status, but the plans themselves fall into three main categories:

• • PAYE (Pay As You Earn)

  • IBR (Income-Based Repayment)

  • RAP (Repayment Assistance Plan)

Each plan uses a different formula to calculate payments and comes with different tradeoffs as income grows.

Some plans include payment caps. Others do not.
Some are being phased out. Others are becoming the default.

The sections below walk through how each plan works, who can use it, and when each plan tends to make sense, so you can see how the differences actually affect your payment.

PAYE (Pay As You Earn)

Status: Available to old borrowers, phasing out
PAYE is expected to be fully phased out by July 2028.

Who Can Use PAYE

You may be eligible for PAYE if:

• • Your first federal student loan was taken out on or after October 1, 2007, and

  • You took out at least one federal loan on or after October 1, 2011, and

  • You remain an old borrower under the July 2026 rules

PAYE also requires a partial financial hardship, meaning your calculated PAYE payment must be lower than what you would owe under the 10-Year Standard Repayment Plan in order to enroll.

If you do not meet all of these criteria, PAYE is not an option.

How PAYE Payments Work

Under PAYE:

• • Payments are 10% of discretionary income

  • Any remaining balance is forgiven after 20 years

  • Monthly payments are capped at the 10-Year Standard Repayment amount

  • Family size includes you, your spouse, your children, and anyone else you financially support

If your monthly payment does not cover all accrued interest, negative amortization can occur, meaning your loan balance can grow over time.

When PAYE Tends to Make Sense

PAYE can be a good fit if:

• • You are an old borrower and still eligible

  • You meet the partial financial hardship requirement

  • You are not eligible for New IBR but want a similar income-based plan with a payment cap

  • You expect your income to rise significantly over time

  • You want the protection of a payment cap

  • You are pursuing Public Service Loan Forgiveness (PSLF) and want to keep required payments lower during training

If you are already enrolled in PAYE, you can remain on it until the plan is formally phased out.

When PAYE is phased out in 2028, borrowers are expected to transition to IBR or RAP, depending on eligibility.

Bottom Line on PAYE

PAYE is largely a legacy plan, but it can still be useful in specific situations.

If New IBR is not available and you meet PAYE’s eligibility and hardship rules, PAYE may be the closest alternative.

If you are not eligible for PAYE, the focus is usually on IBR or RAP, which we’ll cover next.

Learn more about PAYE

IBR (Income-Based Repayment)

Status: Available to old borrowers
IBR remains available to borrowers who qualify as old borrowers under the July 2026 rules.

Who Can Use IBR

IBR is available to old borrowers.

You may be eligible for IBR if:

• • All of your federal student loans were taken out before July 1, 2026, and

  • You do not take out new federal loans or complete a consolidation on or after that date

Unlike PAYE, IBR does not require a partial financial hardship. As long as you meet the borrower status requirements, you can enroll.

If you consolidate on or after July 1, 2026, you may be treated as a new borrower, which would make IBR unavailable.

How IBR Payments Work

There are two versions of IBR, based on when you first borrowed.

New IBR
(If you borrowed on or after July 1, 2014)

• • Payments are 10% of discretionary income

  • Any remaining balance is forgiven after 20 years

  • Monthly payments are capped at the 10-Year Standard Repayment amount

Old IBR
(If you borrowed before July 1, 2014)

• • Payments are 15% of discretionary income

  • Any remaining balance is forgiven after 25 years

  • Monthly payments are capped at the 10-Year Standard Repayment amount

For both versions:

• • Family size includes you, your spouse, your children, and anyone else you financially support

  • Negative amortization can occur, meaning your loan balance can grow if payments do not cover accrued interest

When IBR Tends to Make Sense

IBR can be a good fit if:

• • You are an old borrower and still eligible

  • You want an Income-Driven Repayment plan that adjusts as income changes over time

  • You want some protection as income rises later in your career

  • You are pursuing Public Service Loan Forgiveness (PSLF) and want predictable payments early on

Bottom Line on IBR

IBR remains a solid option for eligible borrowers.

While New IBR typically allows for a lower monthly payment than Old IBR, both plans eventually reach the same payment cap once income grows high enough, and both versions can make sense depending on when you first borrowed and how your income is expected to change over time.

IBR offers income-based payments that adjust as your career progresses and includes a payment cap that can matter as income rises.

Learn more about IBR

RAP (Repayment Assistance Plan)

Status: Available to all borrowers
RAP is the default Income-Driven Repayment plan for new borrowers beginning July 1, 2026, and remains available to borrowers who qualify as old borrowers.

Who Can Use RAP

You may use RAP if:

• • You take out any federal student loan on or after July 1, 2026, or

  • You complete a federal loan consolidation on or after July 1, 2026

RAP is also available to some old borrowers, even if they qualify for other plans.

Because RAP is widely available and does not require a partial financial hardship, many borrowers will encounter it by default.

How RAP Payments Work

RAP works differently than PAYE and IBR.

Under RAP:

• • Payments range from 1% to 10% of Adjusted Gross Income (AGI)

  • RAP does not use a discretionary income formula

  • Your payment is reduced by $50 per month for each dependent you claim on your federal tax return

  • Family size is based only on dependents claimed, not household size

  • There is no payment cap, meaning payments continue to rise as income increases

  • Any remaining balance is forgiven after 30 years

RAP also includes protections that change how loan balances behave over time.

If your monthly payment does not cover all accrued interest, the unpaid interest is not added to your loan balance.

In some cases, RAP may also apply a principal reduction if your payment does not reduce principal by at least $50 in a given month.

When RAP Tends to Make Sense

RAP can be a good fit if:

• • You are a new borrower and RAP is your only IDR option

  • You want to avoid seeing your loan balance grow during periods of lower income

  • You are early in your career and expect income to rise gradually

  • You are unsure whether Public Service Loan Forgiveness (PSLF) will apply long term

Because RAP does not include a payment cap, it is important to understand how payments may change later in your career as income increases.

Bottom Line on RAP

RAP represents a shift in how Income-Driven Repayment works.

It can provide very low payments early on and strong balance protection, but payments continue to rise with income and are not capped.

For new borrowers, RAP is typically the starting point.

For old borrowers, it can be worth comparing against capped plans like IBR, depending on income growth and long-term goals.

Learn more about RAP

👇 Use The IDR Plan Finder to Check What Plan You Are Eligible For

How Much Could You Pay

Let’s bring it back to Dr. Patel.

He has:

• • $250,000 in student loans

  • A 6% interest rate

  • A family size of 1

Under the 10-Year Standard Repayment Plan, his payment would be $2,777 per month.

Now let’s look at how his payments change as income grows.

Income: $60,000

• • RAP: around $250

  • PAYE or New IBR: around $300

  • Old IBR: around $450

Income: $300,000

• • RAP: around $2,500

  • PAYE or New IBR: around $2,300

  • Old IBR: capped at $2,777

Income: $600,000

• • RAP: around $5,000

  • PAYE, New IBR, and Old IBR: capped at $2,777

What to Notice

• • RAP continues to increase as income rises. There is no payment cap, which can keep payments lower early on but lead to much higher payments later in your career.

  • PAYE and IBR include a payment cap tied to the 10-Year Standard Repayment amount. Once your income is high enough, your payment stops increasing, even if your income continues to rise.

  • Early in your career, RAP may produce the lowest payment, especially when income is modest.

  • As income grows, capped plans like PAYE and IBR can become less expensive than RAP, even though they may start higher.

This is why the “best” plan can change over time and why it’s important to look beyond just your first monthly payment.

Quick Answers About IDR

If you’re skimming, here are quick answers to the most common questions about Income-Driven Repayment plans.

Does Income-Driven Repayment count for PSLF?

Yes.

RAP, PAYE, and IBR are all eligible repayment plans for Public Service Loan Forgiveness (PSLF). Qualifying payments can count toward the 120 payments required for tax-free forgiveness.

Is there an income limit to use IDR?

It depends on the plan.

• • RAP does not require a partial financial hardship.

  • PAYE requires a partial financial hardship to enroll.

  • IBR does not require a partial financial hardship.

Does my loan balance affect my IDR payment?

Usually, no.

IDR payments are primarily based on income and family size, not how much you owe.

That is why two borrowers with very different loan balances can have the same monthly payment if their income and family size are the same.

Your loan balance can still matter in certain situations, such as when a payment cap applies.

Does my spouse’s income affect my IDR payment?

It depends on how you file your taxes.

• • If you file Married Filing Jointly, your spouse’s income is included.

  • If you file Married Filing Separately, your spouse’s income is generally excluded.

For PAYE and IBR, your spouse may also be included in your family size.

For RAP, only dependents you personally claim on your federal tax return are used.

If you are unsure whether filing jointly or separately makes sense, or how your state affects the math, this guide can help you walk through the decision.

How does family size affect IDR payments?

Family size can reduce your payment, but the definition varies by plan.

• • PAYE and IBR use household family size.

  • RAP only counts dependents you claim on your federal tax return.

Each plan applies family size differently, which can materially change your payment.

Will my loan balance grow under IDR?

It depends on the plan.

• • PAYE and IBR can allow negative amortization, meaning your balance can grow if payments do not cover all interest.

  • RAP prevents unpaid interest from being added to your balance, which can help keep balances from growing during periods of lower income.

Which IDR plan should I choose?

There is no single best plan.

The right choice depends on:

• • Whether you are a new borrower or old borrower

  • Your income today and expected income growth

  • Whether you plan to pursue PSLF

  • Your tax filing status and family situation

The calculator above is a great starting point. The key is understanding the tradeoffs before committing.

Does consolidation affect which IDR plans I can use?

Yes.

A Direct Loan Consolidation completed on or after July 1, 2026 can cause you to be treated as a new borrower, which may limit access to PAYE and IBR.

Timing matters.

Want Help Double Checking Your Plan?

Most people can get pretty far on their own using this guide.

But if you would rather talk things through with someone who lives and breathes this stuff, here is a simple way to decide what level of support makes sense.

A one-time review is usually enough if:

• • You feel mostly confident but want a second set of eyes

  • You want help choosing the right repayment plan

  • You just want to make sure you are not missing anything important

Ongoing support usually makes sense if:

• • You plan to pursue PSLF and want help each year

  • You do not want to deal with annual forms, servicer changes, or payment recertification

  • You want someone in your corner while you are busy being a doctor

Choose the option that fits where you are right now.

There is no wrong choice here. Pick the path that fits you today. You can always adjust or upgrade later if your situation changes.

Disclosure: This content is for informational purposes only and does not constitute personalized financial, tax, or student loan advice. Student loan programs and repayment rules change frequently, and while I strive to keep this page up to date, I can’t guarantee accuracy at all times. Please consult your tax or financial professional for guidance specific to your situation.

Michael Putterman, CFP®

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