New Income-Based Repayment (IBR)
Calculator
For new borrowers on or after July 1, 2014. Estimate your monthly payment under the New IBR formula using your loan balance, income, and family size.
Calculate Your New IBR Payment Now →How to Use This Calculator
The New Income-Based Repayment (IBR) plan calculates your payment based on 10% of your discretionary income, but never more than what you would pay under a standard 10-year repayment plan. This applies to new borrowers on or after July 1, 2014.
- 1Enter your total eligible loan balance — your principal when you entered repayment.
- 2Enter your average annual interest rate. It converts automatically to a monthly rate.
- 3Enter your Adjusted Gross Income (AGI). If married filing jointly, include combined income.
- 4Select your marital status and number of dependents to determine family size.
- 5Choose your state of residence — poverty guidelines vary by location.
- 6Click “Calculate Payment” to see your estimated New IBR monthly payment.
The calculator uses federal poverty guideline tables based on state and family size. 150% of this amount is subtracted from AGI to determine discretionary income.
Calculate Your New IBR Payment
How Your New IBR Payment is Calculated
Your New Income-Based Repayment (IBR) payment is determined using three core formulas. The key difference from the Old IBR plan is that new borrowers pay 10% of discretionary income instead of 15%.
1. Standard 10-Year Repayment Cap (S)
This is the maximum monthly payment you would make under a fully amortized 10-year repayment plan. Your IBR payment can never exceed this amount.
- P = Loan principal balance at repayment start
- r = Monthly interest rate = (Annual Rate ÷ 100 ÷ 12)
- 120 = 10 years × 12 months
- This is the standard amortization formula used for installment loans
2. Discretionary Income (Dinc)
Discretionary income equals your income above 150% of the federal poverty guideline.
- AGI = Adjusted Gross Income (Combined if Married Filing Jointly; Individual if Single or Married Filing Separately)
- PL = HHS Poverty Guideline for the borrower’s family size and state of residence
- 1.5 × PL = 150% poverty protection threshold
- If AGI is below 150% of PL, discretionary income is $0
3. Final Monthly Payment (M)
Your required monthly payment is the lesser of:
- 10% of discretionary income (converted to monthly)
- The standard 10-year repayment cap (S)
- 0.10 = 10% required under New IBR (vs. 15% for Old IBR)
- Division by 12 converts annual income to monthly amount
- Payment cannot exceed S
- If calculated payment is less than $5 → payment becomes $0
- If payment is between $5 and $10 → payment becomes $10
