REPAYE Calculator
Estimate your monthly payment under the Revised Pay As You Earn (REPAYE) income-driven repayment plan. This tool helps you understand how your income and family size affect your student loan payments.
Calculate Your REPAYE Payment
Estimated Monthly REPAYE Payment
Discretionary Income
$0.00
Annual Payment
$0.00
Monthly Interest Accrual
$0.00
Projected Amortization Schedule (First 10 Years)
| Year | Payment | Interest Paid | Principal Paid | Remaining Balance |
|---|
This table projects payments based on current inputs and does not account for future income changes or interest capitalization. It assumes a 3% annual income growth for projection purposes.
What is the REPAYE Plan?
The Revised Pay As You Earn (REPAYE) plan is an income-driven repayment (IDR) plan for federal student loans. Its primary goal is to make loan payments more affordable by capping the monthly payment at an amount that is intended to be a manageable percentage of the borrower’s income. This REPAYE Calculator helps you estimate what that payment might be. Under REPAYE, your payment is generally set at 10% of your discretionary income. This is different from a standard repayment plan, where the payment is calculated based on the loan balance, interest rate, and a fixed term (usually 10 years).
Anyone with eligible federal Direct Loans can use the REPAYE plan, regardless of their income or when they took out the loans. This makes it one of the most widely accessible IDR plans. A common misconception is that you need a very low income to qualify. While a lower income results in a lower payment (potentially $0), even middle or high-income earners can enroll in REPAYE, although their payment might be higher than the standard repayment amount. The main benefit for them is the interest subsidy. Using a REPAYE calculator is the best way to see how your specific numbers work out.
It’s important to note that while REPAYE was a popular plan, it was effectively replaced and enhanced by the new Saving on a Valuable Education (SAVE) plan in 2023. Borrowers on REPAYE were automatically transitioned to SAVE, which offers even more generous terms, such as a higher poverty line exemption (225%) and a 100% unpaid interest subsidy. This REPAYE calculator is based on the original REPAYE formula but provides a foundational understanding of income-driven payments.
REPAYE Formula and Mathematical Explanation
The calculation behind the REPAYE plan is a multi-step process designed to determine an affordable monthly payment. The core of the formula is “discretionary income.” Here’s a step-by-step breakdown you can verify with our REPAYE calculator.
- Determine the Federal Poverty Guideline: The U.S. Department of Health and Human Services sets poverty guidelines based on family size and state. REPAYE uses 150% of this amount.
- Calculate Discretionary Income: Subtract 150% of the poverty guideline from your Adjusted Gross Income (AGI).
Formula: Discretionary Income = AGI – (1.50 × Poverty Guideline) - Calculate Annual Payment: Your total annual payment is 10% of your discretionary income.
Formula: Annual Payment = Discretionary Income × 0.10 - Determine Monthly Payment: Simply divide the annual payment by 12.
Formula: Monthly Payment = Annual Payment / 12
If your AGI is less than 150% of the poverty guideline, your discretionary income is considered $0, and your monthly payment will be $0. This is a key feature for borrowers with lower incomes. The power of a REPAYE calculator is that it handles these steps automatically.
Variables Table
| Variable | Meaning | Unit | Typical Range |
|---|---|---|---|
| AGI | Adjusted Gross Income | Dollars ($) | $20,000 – $150,000+ |
| Family Size | Number of people in the household | Count | 1 – 8+ |
| Poverty Guideline | Federal threshold for poverty | Dollars ($) | $15,060 – $53,580+ (for 2024, depends on family size) |
| Discretionary Income | Income used to calculate payment | Dollars ($) | $0 – $100,000+ |
Practical Examples (Real-World Use Cases)
Example 1: Recent Graduate
A recent graduate starts a job with an AGI of $45,000. They are single (family size of 1), live in Texas, and have $30,000 in federal student loans at a 5% interest rate. They use a REPAYE calculator to check their options.
- AGI: $45,000
- Family Size: 1
- Poverty Guideline (150%): approx. $22,590 (based on 2024 mainland numbers)
- Discretionary Income: $45,000 – $22,590 = $22,410
- Annual Payment: $22,410 × 0.10 = $2,241
- Estimated Monthly Payment: $2,241 / 12 = $186.75
This payment is likely much lower than the 10-year standard repayment plan amount (which would be around $318), providing significant monthly cash flow relief.
Example 2: Married with Children
A borrower has an AGI of $80,000 and their spouse has an AGI of $60,000, for a combined AGI of $140,000. They have a family of 4 and live in California. Their combined federal loan debt is $90,000 at 6%. Under REPAYE, both incomes are always included, regardless of tax filing status.
- AGI: $140,000
- Family Size: 4
- Poverty Guideline (150%): approx. $46,590 (based on 2024 mainland numbers)
- Discretionary Income: $140,000 – $46,590 = $93,410
- Annual Payment: $93,410 × 0.10 = $9,341
- Estimated Monthly Payment: $9,341 / 12 = $778.42
Even with a higher income, the REPAYE plan can provide a structured payment. The most important step for anyone considering this plan is to use a reliable REPAYE calculator to get a personalized estimate. For more details on loan management, see our guide on student loan payoff strategies.
How to Use This REPAYE Calculator
This calculator is designed to be straightforward and give you a clear picture of your potential REPAYE payment. Follow these steps:
- Enter Your AGI: Input your Adjusted Gross Income. You can find this on line 11 of your Form 1040 tax return.
- Set Your Family Size: Enter the number of people in your household. This includes yourself, your spouse (if you have one), and your children or other dependents.
- Select Your State: Choose whether you live in Alaska, Hawaii, or the contiguous 48 states, as this impacts the poverty guidelines.
- Input Loan Details: Enter your total federal student loan balance and the average interest rate.
- Review Your Results: The calculator will instantly display your estimated monthly payment, your discretionary income, and your total annual payment.
When reading the results, pay close attention to the primary monthly payment figure. Compare this to your current payment or the estimated standard 10-year payment. The amortization table gives you a long-term view of how your loan balance could evolve, factoring in interest. A powerful feature of the REPAYE plan is the interest subsidy, where the government forgives 50% of the remaining interest each month that your payment doesn’t cover. This can significantly slow down loan balance growth. Understanding these numbers is the first step in making an informed decision about your student loan repayment journey, and a REPAYE calculator is your best tool for this.
Key Factors That Affect REPAYE Results
Your REPAYE payment is not static; it can change annually. Several factors influence the calculation, making it crucial to understand them. Using a REPAYE calculator helps model these factors.
1. Adjusted Gross Income (AGI)
This is the single most important factor. As your AGI increases, your discretionary income increases, and so does your monthly payment. A promotion, new job, or side income will directly impact your REPAYE calculation.
2. Family Size
A larger family size increases the poverty guideline threshold. This, in turn, *decreases* your discretionary income and leads to a lower monthly payment. Getting married or having a child can significantly reduce your required payment.
3. State of Residence
Alaska and Hawaii have higher poverty guidelines to account for a higher cost of living. Living in one of these states will result in a lower REPAYE payment compared to living in the contiguous 48 states with the same income and family size.
4. Marriage (Spousal Income)
A unique feature of REPAYE is that it *always* includes your spouse’s income in the calculation, regardless of whether you file your taxes jointly or separately. This “marriage penalty” can lead to a much higher payment for dual-income households compared to other IDR plans like PAYE or IBR when filing separately.
5. Loan Balance Forgiveness
While your loan balance doesn’t affect the monthly payment calculation, it’s critical for the long-term outcome. After 20 years (for undergraduate loans) or 25 years (for graduate loans) of qualifying payments, any remaining balance is forgiven. A higher starting balance means more potential for forgiveness. For those pursuing this, understanding Public Service Loan Forgiveness is also crucial.
6. Interest Rate and Subsidies
A higher interest rate means your loan balance grows faster. However, REPAYE offers a valuable interest subsidy. If your monthly payment is less than the interest that accrues each month, the government pays half of the difference. For example, if $100 in interest accrues and your payment is $40, you defer $60. The government pays half of that ($30), so your loan balance only increases by $30 instead of $60. This makes the REPAYE calculator especially useful for seeing how your balance might change over time.
Frequently Asked Questions (FAQ)
REPAYE was officially replaced by the SAVE plan. SAVE is more generous, increasing the income protection from 150% to 225% of the poverty line and offering a 100% unpaid interest subsidy, meaning your balance won’t grow from unpaid interest if you make your monthly payment. This REPAYE calculator uses the original 10% of discretionary income over the 150% threshold.
No. Unlike other plans like PAYE and IBR, the REPAYE plan has no payment cap. Your payment is always 10% of your discretionary income. If your income becomes very high, your monthly payment could exceed what you would have paid under the 10-year standard plan.
Yes. You must recertify your income and family size each year to remain on the REPAYE (now SAVE) plan. If you fail to do so, your monthly payment will be recalculated to the amount needed to pay off your loan in 10 years or by the end of your repayment period, whichever is sooner, and any unpaid interest will be capitalized.
Under the original REPAYE rules, yes. Your spouse’s AGI was always included, regardless of your tax filing status. However, the new SAVE plan changes this and allows you to exclude your spouse’s income if you file taxes separately. This is a significant change for married borrowers. Our married filing separately calculator can help explore this.
With REPAYE, 50% of the unpaid interest on both subsidized and unsubsidized loans is subsidized (forgiven) by the government. With the new SAVE plan, 100% of it is subsidized. This is a major benefit that prevents your loan balance from ballooning.
Generally, all Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans made to graduate students, and Direct Consolidation Loans are eligible. Parent PLUS loans are not eligible for REPAYE/SAVE unless consolidated.
The repayment period is 20 years for borrowers with only undergraduate loans. If you have any graduate or professional school loans included, the repayment period is 25 years. After this period, any remaining balance is forgiven.
Historically, the amount forgiven under IDR plans like REPAYE was treated as taxable income. However, the American Rescue Plan of 2021 made all federal student loan forgiveness tax-free through the end of 2025. It is uncertain what the tax treatment will be after that date.
Related Tools and Internal Resources
- Income-Driven Repayment Calculator: Compare all IDR plans, including SAVE, PAYE, and IBR, to find the best fit for your financial situation.
- Student Loan Refinancing Calculator: See if you could save money by refinancing your student loans to a lower interest rate with a private lender.
- PSLF Calculator: If you work in public service, use this tool to track your progress toward tax-free loan forgiveness.
- Loan Amortization Calculator: A general tool to see how any loan is paid down over time, separating principal from interest.
- Debt-to-Income Ratio Calculator: Understand your DTI, a key metric lenders use when you apply for a mortgage or other credit.
- Student Loan Payoff Calculator: Create a strategy to pay off your loans faster by making extra payments.