Save Plan Payment Calculator

With student loan repayment resuming, finding an affordable repayment plan is more important than ever. The SAVE Plan Payment Calculator helps borrowers estimate their monthly payments under the Saving on a Valuable Education (SAVE) income-driven repayment (IDR) plan, introduced by the U.S. Department of Education.

This intuitive tool simplifies complex loan repayment formulas, giving you a clear picture of how much you’ll pay monthly—based on your income, family size, and location—while highlighting potential interest forgiveness benefits.

🧭 What Is the SAVE Plan Calculator?

The SAVE Plan Calculator is an interactive online tool that allows federal student loan borrowers to:

• Estimate their monthly payment based on 5% of discretionary income
• Understand how poverty guidelines affect eligibility
• See how interest forgiveness applies when payments are lower than accrued interest

It’s designed for those considering the SAVE Plan or comparing IDR options before enrolling.

✅ How to Use the SAVE Plan Payment Calculator (Step-by-Step)

Follow these simple steps to calculate your SAVE plan payments:

Step 1: Enter Your Adjusted Gross Income (AGI)

This is your income after deductions. You can find your AGI on your latest tax return (Form 1040, Line 11).

Step 2: Select Your Family Size

Include yourself, your spouse (if applicable), and any dependents.

Step 3: Choose Your State

Select from:

• Alaska
• Hawaii
• Other (Contiguous U.S.)

This affects the federal poverty guideline used in calculations.

Step 4: Enter Your Federal Loan Balance

Only include federal loans, not private ones.

Step 5: Add Your Interest Rate

Use the weighted average if you have multiple federal loans.

Step 6: Click “Calculate”

The tool will display a progress bar and generate results including:

• Estimated monthly payment
• Poverty guideline used
• Discretionary income
• Annual payment
• Interest not covered (which may be forgiven under SAVE)

You can copy or share the results with the click of a button.

📊 Example Scenario

Let’s say:

• AGI: $38,000
• Family Size: 2
• State: Other (Contiguous U.S.)
• Loan Balance: $35,000
• Interest Rate: 5.5%

Result:

• Poverty guideline (225%): $30,368
• Discretionary income: $7,632
• Annual Payment: $381.60
• Monthly Payment: $31.80
• Interest Forgiven Monthly (if any): displayed

This shows how low-income borrowers may benefit from drastically reduced payments and even interest forgiveness.

🧠 Why Use This Calculator? (Key Benefits)

• ✅ Accuracy: Uses current 2024 HHS poverty guidelines
• 🔒 Privacy-Friendly: No data is stored or submitted
• 🧾 Easy to Understand: Clear breakdowns of payment calculations
• 🧠 Educational: Learn how SAVE differs from other IDR plans
• 📱 Mobile Friendly: Works smoothly on all devices
• 💸 Shows Forgiveness: Reveals unpaid interest that won’t accrue

💼 Use Cases

• Students graduating soon
• Borrowers recertifying IDR plans
• Counselors advising clients
• Financial planners assessing repayment impact
• Journalists writing about loan reform

💡 Tips for Using the SAVE Plan Effectively

1. Update your income yearly – Payments are recalculated annually.
2. Use joint income if married and filing jointly.
3. Include your dependents – This can lower your discretionary income.
4. Monitor interest rates – Even low monthly payments could mean longer repayment unless forgiven.
5. Check for PSLF eligibility if you work in public service.

❓ Frequently Asked Questions (FAQ)

1. What is the SAVE Plan?
The SAVE Plan is an income-driven repayment (IDR) plan where payments are 5% of your discretionary income.

2. Is this calculator official?
No, but it uses the same formulas and data as the U.S. Department of Education for accurate estimates.

3. Is my data saved?
No. All calculations are done in your browser for privacy.

4. What does AGI mean?
Adjusted Gross Income (AGI) is your income after deductions. It’s on your federal tax return.

5. How is discretionary income calculated?
It’s your AGI minus 225% of the federal poverty guideline for your state and family size.

6. Why is 225% used?
That’s the threshold defined by the SAVE Plan for determining discretionary income.

7. What happens if my payment is less than interest?
Under SAVE, the unpaid interest doesn’t accrue—effectively making it forgivable.

8. Does it work with married couples?
Yes, but the calculator assumes a single AGI input. For joint returns, combine incomes.

9. Does family size include children?
Yes. Anyone you claim as a dependent should be counted.

10. Can I use this if I live in Puerto Rico?
No, the calculator currently supports only 50 U.S. states.

11. How is the poverty guideline determined?
It’s based on 2024 HHS guidelines, adjusted by state and family size.

12. Will this show forgiveness timelines?
No, it focuses on monthly payments and interest—not long-term forgiveness under PSLF or IDR.

13. Can I use this for private loans?
No. It’s strictly for federal student loans.

14. Does interest rate affect the result?
Yes, especially for estimating interest not covered (and potentially forgiven).

15. Is there a minimum or maximum loan balance?
No, but the tool assumes a federal loan balance above $0.

16. What if my income changes mid-year?
Use your most recent income. You can recertify sooner if needed.

17. Does it consider subsidies?
Yes, indirectly. It accounts for SAVE’s policy of forgiving unpaid interest.

18. Is this calculator updated?
Yes. It reflects 2024 poverty guideline data and SAVE policy rules.

19. Can I save or share the results?
Yes, with built-in “Copy Results” and “Share Results” buttons.

20. Do I still need to apply for SAVE separately?
Yes. This is an estimator—you must apply via the official Federal Student Aid site.

🧾 Final Thoughts

The SAVE Plan Payment Calculator is a must-have tool for federal student loan borrowers navigating income-driven repayment. It demystifies a complex process, delivering instant clarity on how much you owe monthly and how much interest may be forgiven—based entirely on your personal situation.

Use this tool regularly as your income, family size, or state of residence changes, and combine it with advice from a loan servicer or financial professional for a comprehensive repayment strategy.