Student Loan SAVE Plan Calculator
Estimate your monthly payment on the new Saving on a Valuable Education (SAVE) plan.
Enter your AGI from your most recent tax return. This is your gross income minus certain deductions.
Number of people in your household, including yourself.
Total original principal balance of your undergraduate federal student loans.
Total original principal balance of your graduate federal student loans.
The weighted average interest rate across all your federal loans.
Estimated Monthly SAVE Payment
Discretionary Income
(Per Year)
Monthly Interest
(Accrued)
Interest Waived
(Monthly Subsidy)
Monthly Payment vs. Interest Accrued
Sample Amortization Schedule
| Month | Payment | Interest | Subsidy | To Principal | Ending Balance |
|---|
What is a Student Loan SAVE Plan Calculator?
A student loan SAVE plan calculator is a financial tool designed to estimate your monthly payment under the federal government’s Saving on a Valuable Education (SAVE) plan. This income-driven repayment (IDR) plan replaced the former REPAYE plan and offers significant benefits, including lower monthly payments and a generous interest subsidy. By inputting your income, family size, and loan details, the calculator helps you understand your financial obligation and the powerful interest-waiving benefits of the SAVE plan. It is an essential resource for anyone with federal student loans looking to manage their debt more effectively.
This calculator is particularly useful for low-to-middle income earners, as the SAVE plan calculates payments based on a smaller portion of your discretionary income compared to other IDR plans. Our student loan SAVE plan calculator provides a clear estimate of these savings. For more information on various repayment strategies, you might want to explore a general income-driven repayment calculator to compare plans.
The Student Loan SAVE Plan Formula and Explanation
The SAVE plan’s core calculation revolves around your “discretionary income.” This isn’t just your take-home pay; it’s a specific figure determined by a federal formula. Understanding this is key to understanding your payment.
The primary formula is:
Monthly Payment = (Discretionary Income × Payment Percentage) / 12
Where:
- Discretionary Income = Adjusted Gross Income (AGI) – (225% of the Federal Poverty Guideline for your family size)
- Payment Percentage = A weighted average between 5% (for undergraduate loans) and 10% (for graduate loans).
Variables Table
| Variable | Meaning | Unit | Typical Range |
|---|---|---|---|
| Adjusted Gross Income (AGI) | Your total gross income minus specific deductions, found on your tax return. | Currency ($) | $0 – $500,000+ |
| Family Size | The number of individuals in your household. | Count | 1 – 10+ |
| Federal Poverty Guideline | A federal metric based on income and family size. The SAVE plan uses 225% of this value as a protected income threshold. | Currency ($) | Varies by year and family size. |
| Loan Balance | The total amount of your federal student loans, separated by undergraduate and graduate debt. | Currency ($) | $1,000 – $300,000+ |
Practical Examples
Example 1: Public School Teacher
A single teacher with a family size of 1, an AGI of $45,000, and $35,000 in undergraduate loans at a 5% interest rate.
- Inputs: AGI: $45,000, Family Size: 1, Undergrad Loan: $35,000, Grad Loan: $0, Interest Rate: 5%.
- Calculation:
- The 2024 poverty guideline for one person is $15,060. The protected income is 225% of this, or $33,885.
- Discretionary Income = $45,000 – $33,885 = $11,115.
- Annual Payment = $11,115 * 5% = $555.75.
- Result: The estimated monthly payment is approximately $46.31. The unpaid interest each month would be fully subsidized by the government.
Example 2: Physical Therapist with Grad Loans
A physical therapist with a family size of 3, an AGI of $85,000, $20,000 in undergrad loans and $80,000 in grad loans, with an average 6.5% interest rate.
- Inputs: AGI: $85,000, Family Size: 3, Undergrad Loan: $20,000, Grad Loan: $80,000, Interest Rate: 6.5%.
- Calculation:
- The 2024 poverty guideline for a family of 3 is $25,820. The protected income is 225% of this, or $58,095.
- Discretionary Income = $85,000 – $58,095 = $26,905.
- The payment percentage is a weighted average: (($20k/$100k) * 5%) + (($80k/$100k) * 10%) = (0.2 * 0.05) + (0.8 * 0.10) = 0.01 + 0.08 = 9%.
- Annual Payment = $26,905 * 9% = $2,421.45.
- Result: The estimated monthly payment is approximately $201.79. Using a student loan SAVE plan calculator is crucial in this mixed-loan scenario. To explore other options, see our guide on student loan forgiveness.
How to Use This Student Loan SAVE Plan Calculator
Our calculator is designed for simplicity and accuracy. Follow these steps to estimate your payment:
- Enter Your AGI: Input your Adjusted Gross Income from your most recent tax filing. This is the most critical number for the calculation.
- Set Your Family Size: Provide the number of people in your household. A larger family size increases your protected income, lowering your payment.
- Input Loan Balances: Enter the original principal balance for your undergraduate and graduate loans separately. This determines the weighted payment percentage. If you only have one type, leave the other as 0.
- Provide Interest Rate: Enter the average interest rate for your loans to see the interest subsidy calculation.
- Review Your Results: The calculator will instantly update your estimated monthly payment, your discretionary income, and the powerful interest subsidy you might receive.
Interpreting the results is straightforward: the primary result is your estimated monthly bill. The “Interest Waived” shows how much the government prevents from being added to your balance each month, which can save you thousands over time. Thinking about combining loans? Our article on loan consolidation might be helpful.
Key Factors That Affect Your SAVE Plan Payment
Several factors can significantly change your payment amount under the SAVE plan. Understanding them can help you plan your finances more effectively.
- Adjusted Gross Income (AGI): This is the single most important factor. As your AGI increases, your discretionary income increases, and so does your monthly payment.
- Family Size: A larger family size leads to a higher poverty guideline figure, which significantly increases the amount of your income that is protected from the payment calculation, thereby lowering your payment.
- Loan Type (Undergrad vs. Grad): The plan favors undergraduate debt. Payments are calculated at 5% of discretionary income for undergrad loans but 10% for graduate loans. A mix results in a weighted average.
- Marriage (and Tax Filing Status): If you are married and file your taxes separately, the SAVE plan allows you to exclude your spouse’s income from the calculation, which can dramatically lower your payment.
- Annual Recertification: You must recertify your income and family size each year. Any changes will adjust your payment for the next 12 months.
- Federal Poverty Guideline Updates: The poverty guidelines are updated annually. These changes will slightly alter the income protection threshold and, consequently, your payment. For more details on this, the explanation of discretionary income is a great resource.
Frequently Asked Questions (FAQ)
The biggest benefits are the lower monthly payments due to the larger income protection (225% of poverty guidelines) and the interest subsidy. If your monthly payment doesn’t cover the interest accrued that month, the government waives the rest, meaning your loan balance won’t grow from unpaid interest. A student loan SAVE plan calculator helps quantify this benefit.
Yes, if your Adjusted Gross Income is less than 225% of the federal poverty guideline for your family size, your discretionary income is considered $0, and your monthly payment will be $0. For a single person in 2024, this threshold is around $33,885.
It calculates a weighted average of the payment percentages. For example, if half your loan balance is from undergrad (5% rate) and half is from grad school (10% rate), your effective payment rate on discretionary income will be 7.5%.
Only if you file taxes jointly. A major feature of the SAVE plan is that if you are married but file taxes separately, you do not need to include your spouse’s income in the payment calculation.
If you have a remaining balance after making payments for 20 years (for all-undergrad debt) or 25 years (if you have any grad debt), the remaining balance is forgiven. Note that this forgiven amount may be considered taxable income. This is a key feature of Public Service Loan Forgiveness (PSLF) as well.
The interest subsidy on the SAVE plan applies to both Subsidized and Unsubsidized Direct Loans. It does not apply to Parent PLUS loans unless they are consolidated, and it doesn’t apply to private loans.
This calculator provides a highly accurate estimate based on the official SAVE plan formula and publicly available poverty guideline data. Your final payment amount is officially determined by your loan servicer after you apply and submit your income documentation.
You can apply for the SAVE plan and other income-driven repayment plans directly on the official Federal Student Aid website at StudentAid.gov.