Repaye Calculator

Estimate your monthly student loan payments under the Revised Pay As You Earn plan based on your income and family size.

Metric	REPAYE Calculation Basis
Payment Percentage	10% of Discretionary Income
Discretionary Threshold	150% of HHS Poverty Guidelines
Forgiveness Period	20 years (Undergrad) / 25 years (Grad)

What is the REPAYE Calculator?

A REPAYE Calculator is an essential tool for student loan borrowers navigating the Revised Pay As You Earn (REPAYE) repayment plan. This specific income-driven repayment (IDR) plan was designed by the Department of Education to make federal student loan payments more affordable by capping them at a percentage of your income.

Using a REPAYE Calculator allows you to input your Adjusted Gross Income (AGI), family size, and state of residence to determine your monthly obligation. Who should use it? Anyone with Direct Loans seeking a lower monthly payment than the Standard 10-year plan. One common misconception is that this REPAYE Calculator applies to private loans; it does not. It is exclusively for federal student loans.

REPAYE Calculator Formula and Mathematical Explanation

The math behind the REPAYE Calculator involves determining your “Discretionary Income.” This is the difference between your AGI and 150% of the Poverty Guideline for your family size and state.

The core formula is:

Monthly Payment = [(AGI – (1.5 × Poverty Guideline)) × 0.10] / 12

Variable Table

Variable	Meaning	Unit	Typical Range
AGI	Adjusted Gross Income	USD ($)	$20,000 – $200,000+
Family Size	Number of household members	Integer	1 – 10
Poverty Guideline	Federal poverty level index	USD ($)	$15,060 – $50,000+
Payment Cap	Income percentage for payment	Percentage (%)	10% fixed

Practical Examples (Real-World Use Cases)

Example 1: The Single Professional
A borrower lives in Texas (48 States) with an AGI of $45,000 and a family size of 1. Their poverty guideline is $15,060. 150% of that is $22,590. Using the REPAYE Calculator, we find their discretionary income is $22,410. 10% of that is $2,241 annually, resulting in a monthly payment of $186.75.

Example 2: The Growing Family
A borrower in Hawaii has an AGI of $70,000 and a family size of 4. The Hawaii poverty guideline for 4 is $36,890. 150% of that is $55,335. The REPAYE Calculator determines the discretionary income to be $14,665. The monthly payment would be approximately $122.21.

How to Use This REPAYE Calculator

1. Enter your AGI: Refer to your tax return to get the most accurate “Adjusted Gross Income” figure.
2. Define Family Size: Include yourself and any dependents you provide more than half the support for.
3. Select State: Choose your state as poverty guidelines are higher in Alaska and Hawaii.
4. Loan Details: Input your total federal loan balance and the average interest rate for interest subsidy estimates.
5. Analyze Results: The REPAYE Calculator will instantly update your monthly payment and show how it compares to the interest accruing on your debt.

Key Factors That Affect REPAYE Calculator Results

• Income Fluctuations: As your AGI rises, your REPAYE Calculator result will increase. Conversely, a drop in income lowers the payment.
• Family Size Changes: Adding a family member increases the poverty guideline threshold, which reduces discretionary income and lowers your payment.
• Interest Rates: While they don’t change the payment amount, they affect how much interest is subsidized by the government.
• Tax Filing Status: REPAYE generally includes your spouse’s income if you are married, regardless of whether you file jointly or separately.
• Inflation: Federal poverty guidelines are updated annually for inflation, which the REPAYE Calculator must account for.
• Loan Forgiveness Timeline: Payments are required for 20 years for undergraduate loans or 25 years for graduate-level loans before the remaining balance is forgiven.

Frequently Asked Questions (FAQ)

Does the REPAYE Calculator include spouse income?

Yes, under the original REPAYE rules, both spouses’ incomes are used to calculate the payment if they are married, even if they file taxes separately.

What happens if my income is very low?

If your income is below 150% of the poverty guideline, the REPAYE Calculator will show a $0.00 monthly payment.

Can I use the REPAYE Calculator for Parent PLUS loans?

Parent PLUS loans are not directly eligible for REPAYE unless they are consolidated into a Direct Consolidation Loan and then typically only for the ICR plan, unless the “double consolidation” loophole is used.

How often do I need to recalculate?

You must recertify your income annually, so using the REPAYE Calculator once a year is recommended.

Is there a payment cap on REPAYE?

Unlike the IBR plan, REPAYE does not have a “cap.” If your income grows significantly, your payment could theoretically exceed the Standard 10-year plan amount.

What is the interest subsidy in REPAYE?

If your payment doesn’t cover the interest, the government pays 100% of the remaining interest on subsidized loans for 3 years, and 50% thereafter. It pays 50% on unsubsidized loans immediately.

Is loan forgiveness taxable?

Currently, federal student loan forgiveness is tax-free through 2025, but it may be considered taxable income by the IRS after that date.

Did REPAYE change to the SAVE plan?

Yes, in 2023, the REPAYE plan was officially replaced and enhanced by the SAVE (Saving on a Valuable Education) plan, though many still use the term REPAYE Calculator during the transition.