REPAYE Calculator

Category: Other Finance
- June 02, 2025
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Calculate your monthly payments and loan forgiveness timeline under the Revised Pay As You Earn (REPAYE) plan. REPAYE caps payments at 10% of discretionary income and offers loan forgiveness after 20-25 years of qualifying payments.

Loan Information

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Income Information

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Additional Settings

Advanced Options

About REPAYE (Revised Pay As You Earn)

REPAYE is an income-driven repayment plan that caps monthly payments at 10% of discretionary income and offers loan forgiveness after 20 years for undergraduate loans or 25 years for graduate loans.

Key REPAYE Features
  • Payment Cap: 10% of discretionary income (income above 150% of poverty line)
  • Forgiveness Timeline: 20 years for undergraduate loans, 25 years for any graduate loans
  • Interest Subsidy: Government pays 50% of unpaid interest on subsidized loans and 50% of unpaid interest on unsubsidized loans for first 3 years
  • No Payment Cap: Unlike other plans, payments can exceed standard 10-year payment amounts
  • Married Couple Income: Always includes spouse's income regardless of filing status
  • Annual Recertification: Income and family size must be recertified annually
Eligibility Requirements
  • Must have Direct Loans (Stafford, PLUS for graduate students, Consolidation loans)
  • No requirement for partial financial hardship (unlike original PAYE)
  • Available to new and existing borrowers
  • Parent PLUS loans are not eligible unless consolidated
Important Considerations
  • Tax Implications: Forgiven loan amounts may be taxable income
  • Negative Amortization: If payments don't cover interest, balance may grow
  • Capitalization: Unpaid interest may be added to principal when leaving plan
  • Annual Documentation: Must submit income documentation yearly to maintain enrollment

Disclaimer: This calculator provides estimates based on current REPAYE program rules and may not account for all individual circumstances. Actual payments may vary based on changes in income, family size, interest rates, or program rules. Consult with your loan servicer or a financial advisor for personalized advice. This tool is for educational purposes only.

What Is the REPAYE Calculator?

The REPAYE Calculator is a helpful payment planning tool that estimates your monthly student loan payments under the Revised Pay As You Earn (REPAYE) plan. It allows you to forecast your total payments, loan forgiveness eligibility, and long-term Financial impact based on your income, family size, and loan type.

REPAYE is one of several income-driven repayment options for federal student loans. It caps your monthly payments at 10% of your discretionary income and forgives any remaining loan balance after 20 or 25 years of qualifying payments.

Key Features

  • Estimates monthly payments based on your income and loan balance
  • Shows projected total payments and amount potentially forgiven
  • Includes interest subsidy benefits in REPAYE plan
  • Offers a payment breakdown and optional comparisons with Other repayment plans
  • Visualizes annual payments and loan balance over time with a line chart

REPAYE Formula

Monthly Payment = (Discretionary Income × 10%) ÷ 12
Discretionary Income = Annual Income − (150% × Poverty Guideline)

How to Use the REPAYE Calculator

  1. Enter your total loan balance and interest rate.
  2. Select your loan type: undergraduate, graduate, or mixed.
  3. Input your income information, including any spouse income if applicable.
  4. Choose your filing status, family size, and state of residence.
  5. Optionally adjust settings like income growth rate and whether to include the REPAYE interest subsidy.
  6. Click “Calculate REPAYE Payments” to view your results.

Understanding the Results

Once calculated, the tool provides a monthly payment estimate for your first year, as well as projections over time. It displays a loan forgiveness timeline and offers a clear payment breakdown, helping you understand how your loan balance will change each year.

You can also compare REPAYE with other plans using the repayment plan comparison feature, which acts like a mini loan payment details and installment calculation tool in one place.

Why This Tool Is Useful

  • Plan Ahead: Forecast your payments to budget more confidently.
  • Understand Forgiveness: See if you qualify for loan forgiveness and when.
  • Make Informed Decisions: Compare payment plans side by side.
  • Track Progress: Monitor remaining years in repayment and potential savings.

Frequently Asked Questions

1. Who is eligible for REPAYE?

REPAYE is available to most borrowers with federal Direct Loans. Parent PLUS loans are not eligible unless consolidated.

2. What counts as discretionary income?

Discretionary income is your annual income minus 150% of the federal poverty guideline for your family size and state.

3. How long does forgiveness take?

REPAYE offers loan forgiveness after 20 years for undergraduate loans and 25 years for any graduate loans.

4. Are forgiven amounts taxed?

Yes, in most cases, the forgiven loan amount is considered taxable income. Always consult a tax professional for your specific situation.

5. How does this compare to a standard repayment plan?

The calculator compares REPAYE to the standard 10-year plan. If your income is low, REPAYE may offer a lower monthly payment. However, you might pay more over time due to interest.

Final Notes

This monthly payment tool helps you estimate payments and analyze long-term financial outcomes. Use it to make confident decisions about your student loan repayment strategy.

The REPAYE Calculator functions much like a payment estimator and loan repayment planner, providing valuable insights similar to tools like a Commission Calculator or inflation impact tool, but focused specifically on student loans and income-based repayment.

Disclaimer: This tool offers estimates only and may not reflect your exact repayment situation. Always verify with your loan servicer or a financial advisor.