Loan Repayment Calculator
Compare a standard fixed-term loan repayment to an income-based repayment plan.
- Standard Plan Payment$388.57
- Income-Based Plan Payment$400.00
Income-based payments would actually be higher here — the standard plan is both cheaper and faster in this case.
- Income-Based Plan Payment$400.00
Income-based payments may extend your payoff timeline and increase total interest compared to the standard plan.
About the Loan Repayment Calculator
A standard loan repayment plan sets one fixed payment for the life of the loan, sized to pay it off by a set date. Income-based repayment flips that: the payment is set as a share of your income instead, which can be a lot more manageable month to month, but it comes at a real cost most people underestimate — a smaller payment slows how fast the principal actually shrinks.
This calculator puts both plans side by side using the same loan balance and rate, so the trade-off is visible in real numbers rather than an abstract 'lower payment is better' assumption — useful for anyone weighing federal student loan repayment options or any other loan that offers an income-linked plan.
Your loan balance and income figures stay local — nothing here is transmitted or stored on a server.
Frequently asked questions
What is income-based repayment?
It's a repayment structure, most common with federal student loans, where the monthly payment is set as a percentage of your income rather than as a fixed amount calculated to pay off the loan by a specific date.
Does a lower income-based payment cost more in total over time?
Often, yes — a smaller payment means less of each month's payment goes toward principal, so the balance shrinks more slowly and accrues interest for longer, typically increasing total interest paid over the life of the loan compared to the standard plan.
When does income-based repayment make sense despite costing more overall?
When the standard fixed payment genuinely doesn't fit your current budget — a lower payment that keeps you current and out of default is usually worth more than a lower total cost you can't actually afford to pay.
Does this model loan forgiveness after a set number of years?
No — many income-based plans include forgiveness of any remaining balance after a set number of years of payments, which can change the real total cost substantially. This calculator only compares the two payment amounts and their standard-plan cost; it doesn't model forgiveness provisions.
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