Ibr Calculator 2025

2025 Income-Based Repayment (IBR) Calculator

Estimate your potential monthly student loan payment under the Income-Based Repayment (IBR) plan for 2025. IBR payments are based on your income and family size, not your loan balance.

10% (New borrowers on/after July 1, 2014) 15% (Older borrowers)

function calculateIbrPayment() { var agi = parseFloat(document.getElementById('agi').value); var familySize = parseInt(document.getElementById('familySize').value); var ibrPercentage = parseFloat(document.getElementById('ibrPercentage').value); var fplSingle = parseFloat(document.getElementById('fplSingle').value); var fplIncrement = parseFloat(document.getElementById('fplIncrement').value); if (isNaN(agi) || agi < 0) { document.getElementById('result').innerHTML = 'Please enter a valid Adjusted Gross Income (AGI).'; return; } if (isNaN(familySize) || familySize < 1) { document.getElementById('result').innerHTML = 'Please enter a valid Family Size (must be 1 or greater).'; return; } if (isNaN(fplSingle) || fplSingle < 0) { document.getElementById('result').innerHTML = 'Please enter a valid Federal Poverty Line for a 1-person household.'; return; } if (isNaN(fplIncrement) || fplIncrement < 0) { document.getElementById('result').innerHTML = 'Please enter a valid FPL Increment per additional person.'; return; } var relevantFpl = fplSingle + (Math.max(0, familySize – 1) * fplIncrement); var fpl150Percent = relevantFpl * 1.5; var discretionaryIncome = agi – fpl150Percent; if (discretionaryIncome <= 0) { document.getElementById('result').innerHTML = '

Your Estimated 2025 IBR Payment:

' + 'Monthly IBR Payment: $0.00′ + 'Your Adjusted Gross Income is below 150% of the Federal Poverty Line for your family size, resulting in a $0 monthly payment.'; } else { var annualIbrPayment = discretionaryIncome * ibrPercentage; var monthlyIbrPayment = annualIbrPayment / 12; document.getElementById('result').innerHTML = '

Your Estimated 2025 IBR Payment:

' + 'Annual Discretionary Income: $' + discretionaryIncome.toFixed(2) + " + 'Monthly IBR Payment: $' + monthlyIbrPayment.toFixed(2) + " + 'This is an estimate. Your actual payment may vary based on official 2025 FPL figures and other factors.'; } } .calculator-container { background-color: #f9f9f9; border: 1px solid #ddd; padding: 20px; border-radius: 8px; max-width: 600px; margin: 20px auto; font-family: Arial, sans-serif; } .calculator-container h2 { color: #333; text-align: center; margin-bottom: 20px; } .calc-input-group { margin-bottom: 15px; } .calc-input-group label { display: block; margin-bottom: 5px; font-weight: bold; color: #555; } .calc-input-group input[type="number"], .calc-input-group select { width: calc(100% – 22px); padding: 10px; border: 1px solid #ccc; border-radius: 4px; box-sizing: border-box; font-size: 16px; } .calculator-container button { background-color: #007bff; color: white; padding: 12px 20px; border: none; border-radius: 4px; cursor: pointer; font-size: 18px; width: 100%; margin-top: 10px; } .calculator-container button:hover { background-color: #0056b3; } .calc-result { margin-top: 20px; padding: 15px; border: 1px solid #e0e0e0; border-radius: 4px; background-color: #e9f7ef; color: #333; } .calc-result h3 { color: #28a745; margin-top: 0; margin-bottom: 10px; } .calc-result p { margin-bottom: 5px; line-height: 1.5; } .calc-result strong { color: #000; } .calc-result .note { font-size: 0.9em; color: #666; margin-top: 10px; }

Understanding the 2025 Income-Based Repayment (IBR) Plan

The Income-Based Repayment (IBR) plan is one of several income-driven repayment (IDR) options available for federal student loans. Designed to make loan payments more manageable, IBR caps your monthly payment at an amount based on your income and family size, rather than your loan balance. This can be particularly helpful for borrowers with high loan balances relative to their earnings.

How IBR Works

Under the IBR plan, your monthly payment is generally calculated as a percentage of your "discretionary income." Here's a breakdown of the key components:

• Adjusted Gross Income (AGI): This is the primary factor in determining your payment. Your AGI is typically found on your federal income tax return.
• Federal Poverty Line (FPL): The FPL is a set of income thresholds used to determine eligibility for various federal programs. For IBR, your discretionary income is calculated by subtracting 150% of the relevant FPL for your family size from your AGI. The FPL is updated annually, which is why "2025" is relevant for this calculator.
• Family Size: Your family size directly impacts the FPL used in the calculation. A larger family size results in a higher FPL, which in turn can lead to a lower discretionary income and thus a lower monthly payment.
• Payment Percentage:
  • 10% of Discretionary Income: For new borrowers who took out their first federal student loan on or after July 1, 2014.
  • 15% of Discretionary Income: For borrowers who took out their first federal student loan before July 1, 2014.

If your calculated payment is less than $0, or if your discretionary income is zero or negative, your IBR payment will be $0 per month.

Who is Eligible for IBR?

Most federal student loans are eligible for IBR, including Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans made to students, and Direct Consolidation Loans. FFEL Program loans (Subsidized Stafford, Unsubsidized Stafford, FFEL PLUS, and FFEL Consolidation Loans) are also eligible, though some may require consolidation into a Direct Consolidation Loan first.

To qualify for IBR, you must have a "partial financial hardship," meaning your calculated IBR payment is less than what you would pay under the Standard 10-Year Repayment Plan.

Why "2025" Matters for IBR

The "2025" in this calculator refers to the estimated Federal Poverty Line (FPL) figures that will be used for repayment periods starting in 2025. The Department of Health and Human Services (HHS) updates the FPL annually, usually in January. While this calculator uses estimated 2025 FPL figures (based on 2024 data with a slight adjustment), it's important to use the official figures once they are released for the most accurate calculation.

How to Use This IBR Calculator

1. Enter Your Adjusted Gross Income (AGI): Provide your most recent AGI from your tax return.
2. Enter Your Family Size: Include yourself, your spouse (if filing jointly and their income is included in your AGI), and any children or dependents you support.
3. Select IBR Payment Percentage: Choose 10% or 15% based on when you took out your first federal student loan.
4. Review FPL Estimates: The calculator provides estimated 2025 Federal Poverty Line figures. You can adjust these if you have more precise information for 2025 once it's released.
5. Click "Calculate IBR Payment": The calculator will then display your estimated monthly IBR payment and your annual discretionary income.

Important Considerations for IBR

• Annual Recertification: You must recertify your income and family size annually. If you don't, your payments may revert to the standard plan amount, and any unpaid interest may capitalize (be added to your principal balance).
• Interest Capitalization: Under IBR, if your monthly payment doesn't cover all the accrued interest, the unpaid interest may capitalize if you leave the plan or no longer have a partial financial hardship.
• Loan Forgiveness: After 20 or 25 years of qualifying payments (depending on when you borrowed and the loan type), any remaining balance on your loans will be forgiven. However, the forgiven amount may be considered taxable income by the IRS (often referred to as the "tax bomb").
• IBR vs. SAVE: While IBR is a valuable plan, the newer SAVE (Saving on a Valuable Education) plan offers even more generous terms for many borrowers, especially those with undergraduate loans. It uses 225% of the FPL for discretionary income calculation and reduces the payment percentage for undergraduate loans to 5%. It's wise to compare IBR with SAVE to see which plan offers the lowest payment and best benefits for your situation.

This calculator provides a helpful estimate, but for official figures and personalized advice, always consult with your loan servicer or a qualified financial advisor.