IDR Plan Comparison Calculator
Compare all four federal Income-Driven Repayment plans — SAVE, IBR, PAYE, and ICR — side by side using 2026 federal poverty guidelines. Enter your loan balance, income, family size, and filing status to see monthly payments, total cost, and projected forgiveness for each plan. Free, private, runs entirely in your browser — no data sent anywhere.
| Metric | SAVE | IBR (New) | PAYE | ICR |
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| Year | Income | SAVE ($/mo) | IBR ($/mo) | PAYE ($/mo) | ICR ($/mo) |
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How Income-Driven Repayment Plans Work in 2026
Income-Driven Repayment (IDR) plans cap your monthly federal student loan payment as a percentage of your discretionary income — the portion of your income that exceeds a federal poverty guideline (FPL) threshold. According to studentaid.gov, all four active IDR plans share the same core structure: you pay a percentage of your discretionary income each month, and any remaining balance is forgiven after 20 or 25 years of qualifying payments. The 2026 federal poverty guidelines set the 100% FPL baseline at $15,650 for a family of one, increasing by $5,380 per additional household member.
Discretionary income is calculated differently per plan. SAVE uses 225% of FPL as the threshold, meaning you pay nothing on the first $35,213 of income (family of 1, 2026 rates) — a significantly more generous formula than the 150% FPL threshold used by IBR, PAYE, and ICR. This makes SAVE the lowest-payment plan for most borrowers with moderate incomes.
SAVE, IBR, PAYE, and ICR: Key 2026 Differences
Each IDR plan has distinct eligibility rules, payment percentages, and forgiveness timelines. Here is a comparison of the four active plans based on 2026 regulations from ed.gov:
- SAVE (Saving on a Valuable Education) — Formerly REPAYE, SAVE is the newest and most generous plan. It charges 5% of discretionary income for undergraduate loans and 10% for graduate loans (weighted for mixed borrowers), uses a 225% FPL threshold, provides interest subsidy (unpaid interest never capitalizes), and forgives after 20 years (undergrad) or 25 years (grad/mixed). As of mid-2024, SAVE is under legal challenge but remains in a payment pause — check studentaid.gov for current status.
- IBR (Income-Based Repayment — New) — Available to new borrowers on or after July 1, 2014. Payments are 10% of discretionary income above 150% FPL, and forgiveness occurs at 20 years. Older IBR (pre-July 2014 borrowers) uses 15% and 25-year forgiveness.
- PAYE (Pay As You Earn) — Requires financial hardship (IDR payment must be less than standard payment). Charges 10% of discretionary income above 150% FPL, with 20-year forgiveness. Requires being a new borrower on or after October 1, 2007 with a disbursement on or after October 1, 2011.
- ICR (Income-Contingent Repayment) — The oldest IDR plan and the only one available to Parent PLUS loan borrowers (after consolidation). Charges the lesser of 20% of discretionary income (using 100% FPL, not 150%) or the amount due on a 12-year fixed repayment plan. Forgiveness at 25 years.
Choosing the Right IDR Plan for Your Loans
The best IDR plan depends on your loan type, income trajectory, and forgiveness timeline. As a general rule, SAVE provides the lowest monthly payment for most borrowers because of its 225% FPL threshold and interest subsidy. However, SAVE's legal status is uncertain as of mid-2025 due to federal court injunctions. IBR (new) is typically the safe fallback for recent borrowers. PAYE may provide slightly lower payments than IBR for some income levels but has stricter eligibility requirements.
ICR is rarely the best choice for direct loan borrowers but is the only option for consolidated Parent PLUS loans. If you are pursuing Public Service Loan Forgiveness (PSLF), any IDR plan qualifies, and forgiveness occurs after just 10 years of payments — in which case the plan with the lowest payment maximizes the amount forgiven tax-free under PSLF rules.
Key decision factors include: loan type (undergrad vs grad), income growth expectations, family size, eligibility window, and whether you are pursuing PSLF. This calculator models all four plans simultaneously so you can compare total cost across your full repayment horizon.
The IDR Tax Bomb: Planning for Forgiveness
When your remaining loan balance is forgiven at the end of an IDR plan's forgiveness period, the forgiven amount is generally treated as ordinary income under the Internal Revenue Code — creating a large tax liability in the year of forgiveness, commonly called the "tax bomb." For a $60,000 forgiven balance, a borrower in the 22% federal bracket plus state taxes could owe $15,000–$20,000 in taxes in a single year.
The American Rescue Plan Act temporarily exempted IDR forgiveness from federal taxes through 2025. As of 2026, that exclusion has not been permanently extended. Borrowers should model their projected forgiven balance, estimate the tax liability, and consider building a savings fund over their repayment period to avoid a financial surprise at forgiveness. PSLF forgiveness remains permanently tax-free under federal law, which is a significant advantage for eligible public service workers. Sources: studentaid.gov, ed.gov. Last updated: May 2026.