IBR Payment Calculator

Income-Based Repayment (IBR) is one of the long-standing federal income-driven plans. Your payment is a share of your "discretionary" income, never more than the 10-year standard payment, and any balance left after 20 or 25 years is forgiven. This calculator estimates your payment now and how the plan plays out as your income grows.

What this calculator does

Enter your adjusted gross income (AGI), family size, federal loan balance, interest rate, when you first borrowed and how fast you expect your income to grow. It shows:

• your monthly payment now,
• the payment cap (the 10-year standard payment),
• the total you'd pay,
• years in repayment, and
• the balance forgiven at the end, if any.

The chart shows your balance over time.

The formula in plain English

Poverty guideline = $15,960 for one person in 2026, plus $5,680 for each additional family member (48 contiguous states).

Discretionary income = AGI − 150% of the poverty guideline.

Payment = discretionary income × 10% ÷ 12 if you first borrowed on or after July 1, 2014, or 15% ÷ 12 if earlier.

The payment can't exceed the standard 10-year payment on your balance when you entered IBR.

Each year your income grows by the rate you enter, and the payment is recalculated. If the loan isn't paid off after 20 years (new borrowers) or 25 years (older borrowers), the remaining balance is forgiven.

A worked example

Dr. Williams has $250,000 in loans at 6.8%, first borrowed after 2014, and has an AGI of $120,000 with a family size of one. She expects about 4% income growth a year.

• 150% of the poverty guideline: $23,940.
• Discretionary income: $96,060.
• Payment: $96,060 × 10% ÷ 12 = about $800 a month.
• The 10-year standard payment cap is about $2,877.
• Over 20 years she'd pay about $309,000, and about $378,000 could be forgiven, though forgiveness outside PSLF may be taxed.

If her income rose faster, her payments would climb toward the cap, and much less would be forgiven. If she worked for a nonprofit, the same payments could count toward PSLF and tax-free forgiveness after 10 years.

Why it matters at each career stage

If you're: Resident / fellow

IBR keeps payments affordable in training. If PSLF is possible, every qualifying payment you make now counts. Compare IBR with RAP to see which gives the lower payment at your income.

If you're: Employed

Once your income rises, your IBR payment may reach the cap, at which point it's the same as a standard payment. Then the question becomes whether to stay for PSLF, pay aggressively or refinance.

If you're: Practice owner

Business owners can sometimes lower AGI through retirement contributions and business deductions, which lowers IBR payments. Talk with a tax professional before planning around that.

IBR vs other options

RAP may have a lower payment at moderate incomes and waives unpaid interest, but forgiveness takes 30 years.

PSLF offers tax-free forgiveness after 10 years of qualifying payments while working for a qualifying employer.

Standard repayment costs more each month but less overall if you'd pay the loan off anyway.

Refinancing can lower your rate but gives up federal plans and forgiveness.

Keeping IBR working

Recertify every year. Missing recertification can raise your payment to the standard amount and capitalize interest.

Use pre-tax retirement contributions. They lower AGI and therefore your payment.

Watch your filing status. Married couples filing jointly use combined income; filing separately can lower payments but may raise taxes.

Plan for the tax bill. If you expect forgiveness outside PSLF, save for the possible tax.

Next, compare with RAP, check PSLF, and estimate the forgiveness tax bomb.