IBR calculator
Answer three questions to calculate your Income-Based Repayment (IBR) payment under the income formula. You need to provide your income, family size and first borrowing date. Apply the 10-year Standard cap after adding your balance.
- 10%For new borrowers who first borrowed on July 1, 2014 or later, the balance is forgiven after 20 years
- 15%A borrower who took out the loan before July 1, 2014 receives forgiveness after 25 years
- The amount left alone for one person is $23,940: 150% of the 2026 poverty line in the 48 states and DC
- Cappedat the 10-year Standard payment amount
Loans you took out before July 1, 2026 can still use IBR. A new loan taken on or after that date limits all your Direct Loans to only RAP or Tiered Standard. Use your figures to compare RAP with IBR
The steps in the calculation
Show how it's worked out
Your family size and state set the 2026 poverty line that IBR begins with. 150% of that line is left alone. For one person, the amount is $23,940 in the 48 states and DC.
If on July 1, 2014 you carried no loan balance under Direct or FFEL, you're a new borrower. Having no balance when you take out a new loan after that date also counts. For new borrowers, 10% applies to income above that line, with the remaining balance forgiven after 20 years. Those who borrowed earlier pay 15% and wait 25 years. Split that by 12 to get your monthly bill.
Income below the line means you pay $0. IBR is subject to a cap: the most you pay equals your 10-year Standard payment amount.
| People in your family | 2026 poverty line | 150% that IBR leaves alone |
|---|---|---|
| 1 | $15,960 | $23,940 |
| 2 | $21,640 | $32,460 |
| 3 | $27,320 | $40,980 |
| 4 | $33,000 | $49,500 |
| 5 | $38,680 | $58,020 |
| 6 | $44,360 | $66,540 |
Sources: Federal Student Aid, IBR questions and HHS 2026 poverty guidelines.
IBR or RAP: how do they compare?
| Plan | Payment basis | Lowest payment | Payment cap | Forgiveness |
|---|---|---|---|---|
| RAP | From 1% to 10% of your total AGI, less $50 for each dependent. | $10 | No cap | After 360 payments |
| IBR | Either 10% or 15% of the income above 150% of the poverty line. | $0 | Your 10-year Standard payment | After 20 or 25 years |
Compare RAP and IBR to see both payments at your income.
What's your next step?
To apply for IBR, submit the income-driven repayment form through studentaid.gov. There's no cost.
Your loan servicer handles the application, then sends your new monthly bill.
Each year, recertify your income so your payment stays aligned with your earnings.
Common questions
How is my IBR payment calculated?
Subtract 150% of your family's poverty line from your AGI. Take 10% or 15% of what remains and divide by 12. A new borrower in the 48 states with $52,000 and a family of 3 pays $92 a month.
Is IBR 10 percent, or 15 percent?
The rate is 10% for new borrowers as of July 1, 2014 or later. You qualify as a new borrower if your Direct or FFEL loan balance was zero on July 1, 2014. Having none when you took out a new loan after that date also counts. All other borrowers pay 15%.
After 20 years, is IBR still forgiven?
If you're a new borrower starting July 1, 2014 or later, the answer is yes: forgiveness comes after 20 years. Those who borrowed earlier wait 25 years.
Alternative ways to check your loan
Compare IBR with RAP, or read up on the plan rules.