SAVE Plan Student Loan Calculator
Estimate your monthly payments on the new Saving on a Valuable Education (SAVE) income-driven repayment plan.
Calculator
Enter your AGI from your most recent tax return.
Number of people in your household.
Principal balance of your undergraduate federal student loans.
Principal balance of your graduate federal student loans.
The weighted average interest rate across all your federal loans.
Estimated Monthly Payment
$0
Monthly Interest Subsidy
$0
Discretionary Income
$0
Potential Forgiveness
$0
Your monthly payment is based on 5-10% of your discretionary income. Discretionary income is your AGI minus 225% of the federal poverty guideline for your family size. Any unpaid monthly interest is subsidized by the government.
Chart: Loan Balance vs. Total Payments Over Time on the SAVE Plan
| Year | Starting Balance | Total Payments | Interest Paid | Interest Subsidized | Ending Balance |
|---|
Table: Projected SAVE Plan Amortization Schedule
What is the SAVE Plan Calculator?
A SAVE Plan Calculator is a financial tool designed to estimate your monthly payment amount under the federal government’s Saving on a Valuable Education (SAVE) plan. This is the newest income-driven repayment (IDR) plan, which replaced the former REPAYE plan. For many borrowers, it offers the most affordable monthly payment. The primary function of a SAVE Plan Calculator is to take your financial details—specifically your Adjusted Gross Income (AGI), family size, and student loan balance—and apply the SAVE formula to project your repayment obligations.
This calculator should be used by anyone with federal student loans who wants to see if they can lower their monthly payments. It’s particularly beneficial for low-to-middle income earners, as the plan protects more income from being counted in the payment calculation. Common misconceptions are that it’s only for new borrowers (it’s for most federal direct loan borrowers) or that it’s complicated to apply for (the process is streamlined on StudentAid.gov). A good SAVE Plan Calculator provides a clear estimate, helping you make informed decisions about your Income-Driven Repayment options.
SAVE Plan Calculator Formula and Mathematical Explanation
The calculation behind the SAVE Plan is more generous than previous IDR plans. It involves a multi-step process to determine your final monthly payment and interest subsidy.
- Determine the Federal Poverty Line (FPL): The FPL is based on your family size and state. For this SAVE Plan Calculator, we use the guidelines for the 48 contiguous states.
- Calculate the Income Protection Amount: The SAVE plan protects 225% of the FPL from being counted as income. This is a significant increase from the 150% in the old REPAYE plan.
- Calculate Annual Discretionary Income: This is your Adjusted Gross Income (AGI) minus the Income Protection Amount. `Discretionary Income = AGI – (2.25 * FPL)`. If this is negative, your payment is $0.
- Determine the Payment Percentage: For undergraduate loans, the payment is 5% of discretionary income. For graduate loans, it’s 10%. If you have both, it’s a weighted average. The powerful SAVE Plan Calculator above handles this for you.
- Calculate Annual Payment: `Annual Payment = Discretionary Income * Payment Percentage`.
- Calculate Monthly Payment: `Monthly Payment = Annual Payment / 12`.
- Calculate Interest Subsidy: The government covers any remaining monthly interest after your payment is applied. If your monthly interest is $100 and your payment is $40, the remaining $60 in interest is waived, so your balance doesn’t grow.
| Variable | Meaning | Unit | Typical Range |
|---|---|---|---|
| AGI | Adjusted Gross Income | Dollars ($) | $20,000 – $150,000 |
| FPL | Federal Poverty Line | Dollars ($) | $15,060 – $51,400+ |
| Debt | Total Student Loan Balance | Dollars ($) | $10,000 – $200,000+ |
| Rate | Weighted Avg. Interest Rate | Percent (%) | 3.0% – 8.0% |
Key variables in the SAVE Plan Calculator formula.
Practical Examples
Example 1: Public School Teacher
A single teacher with an AGI of $55,000 and $40,000 in undergraduate student loans.
- Inputs: AGI: $55,000, Family Size: 1, Undergrad Debt: $40,000, Interest Rate: 5%.
- Outputs: The SAVE Plan Calculator shows a monthly payment of approximately $92. Without the plan, a standard 10-year payment would be over $400. This demonstrates a massive savings and makes the debt manageable on a public service salary, which is crucial for those pursuing Student Loan Forgiveness.
Example 2: Family with Graduate Debt
A family of four with a household AGI of $90,000. One spouse has $60,000 in graduate loans.
- Inputs: AGI: $90,000, Family Size: 4, Grad Debt: $60,000, Interest Rate: 6.5%.
- Outputs: The FPL for a family of four is much higher, so more income is protected. The SAVE Plan Calculator estimates a monthly payment of around $187. The interest subsidy is also significant, preventing the large loan balance from growing. This makes it much easier to manage finances.
How to Use This SAVE Plan Calculator
Using this SAVE Plan Calculator is straightforward. Follow these steps to get an accurate estimate of your potential payments.
- Enter Your AGI: Find your Adjusted Gross Income on your most recent federal tax return.
- Enter Family Size: Include yourself, your spouse (if filing jointly), and any children or dependents.
- Enter Loan Amounts: Separate your total federal student loan balance into undergraduate and graduate debt. The SAVE Plan Calculator uses this to determine the correct payment percentage.
- Enter Interest Rate: Provide the weighted average interest rate for your loans. You can find this on your loan servicer’s website.
- Analyze the Results: The calculator instantly shows your estimated monthly payment, the valuable monthly interest subsidy, and your potential forgiveness amount after 20-25 years of payments. This tool helps you understand the long-term benefits of the plan and if Student Loan Refinancing is a viable alternative.
Key Factors That Affect SAVE Plan Results
Several variables can significantly change the output of the SAVE Plan Calculator. Understanding them is key to managing your student debt effectively.
- Adjusted Gross Income (AGI): This is the most critical factor. A lower AGI directly leads to a lower payment. Tax-advantaged retirement contributions (like to a 401k or IRA) can lower your AGI.
- Family Size: A larger family size increases the poverty line threshold, which protects more of your income and lowers your payment.
- Loan Type (Undergraduate vs. Graduate): The SAVE Plan Calculator applies a 5% factor for undergrad debt and 10% for grad debt. A higher proportion of undergrad debt results in a lower payment.
- Total Debt Amount: While it doesn’t directly impact the monthly payment calculation, a higher debt balance means you will receive a larger interest subsidy and potentially a larger amount of Federal Student Aid in the form of forgiveness.
- Marital Status and Tax Filing: If you’re married and file taxes jointly, your spouse’s income is included in the AGI. Filing separately can exclude spousal income from the SAVE Plan Calculator, potentially lowering your payment, but may have other tax consequences.
- Changes in Federal Poverty Guidelines: The poverty levels are updated annually, which can cause slight adjustments to your payment when you recertify.
Frequently Asked Questions (FAQ)
1. What is discretionary income in the SAVE plan?
It’s the difference between your AGI and 225% of the federal poverty line for your family size. This is the income portion used by the SAVE Plan Calculator to determine your payment.
2. Will my balance grow due to interest on the SAVE plan?
No. If your calculated monthly payment doesn’t cover all the interest that accrues that month, the government waives the rest. This is a key benefit and a major reason to use a SAVE Plan Calculator to see its effect.
3. How long until I get loan forgiveness on SAVE?
It’s typically after 20 years of payments for undergraduate loans and 25 years for graduate loans. Borrowers with original balances of $12,000 or less can get forgiveness in as little as 10 years.
4. Are Parent PLUS loans eligible for the SAVE plan?
No, Parent PLUS loans are not directly eligible. However, they may become eligible if consolidated into a Direct Consolidation Loan and then repaid under an Income-Contingent Repayment (ICR) plan. Our SAVE Plan Calculator is not designed for this scenario.
5. What if my income changes?
You can (and should) recertify your income with your loan servicer at any time if your income decreases. You must recertify annually. You can use this SAVE Plan Calculator anytime to see how a change would impact your payment.
6. Does the SAVE Plan Calculator account for Public Service Loan Forgiveness (PSLF)?
The SAVE plan is a qualifying repayment plan for PSLF. This calculator shows your payment under SAVE, which would be the payment you’d make while working towards PSLF’s 10-year forgiveness timeline.
7. How does the SAVE Plan Calculator handle married couples?
If you file taxes jointly, the calculator uses your combined AGI and total household size. If you file separately, only your income is used. It’s often beneficial to compare scenarios, a key feature to look for in a great REPAYE vs SAVE analysis.
8. Is the amount forgiven under the SAVE plan taxable?
Currently, federal student loan forgiveness is not considered federal taxable income through 2025. However, some states may still tax it. This is subject to change based on future legislation.
Related Tools and Internal Resources
For more help managing your student debt, explore these resources:
- Student Loan Forgiveness Options: A detailed guide on PSLF and other forgiveness programs.
- Income-Driven Repayment Plans: Compare all four IDR plans side-by-side.
- Loan Amortization Calculator: See how a standard loan is paid off over time.
- REPAYE vs SAVE: A deep dive into the differences between the old and new plans.
- Student Loan Refinancing Calculator: Find out if a private loan could save you money.
- Federal Student Aid Programs: An overview of aid available from the government.