Save Plan Payment Calculator
Managing student loan repayments can feel overwhelming, especially when income-based repayment rules, poverty guidelines, and family size all affect how much you owe each month. The Save Plan Payment Calculator is designed to make this process simple and transparent. It helps borrowers estimate their monthly and annual payments under the SAVE (Saving on a Valuable Education) repayment plan using income, family size, and location-based poverty limits.
This calculator is especially useful for borrowers who want to understand how much they will realistically pay, how long repayment may take, and whether their income qualifies them for lower monthly payments.
What Is the SAVE Plan?
The SAVE Plan is an income-driven repayment option for federal student loans. Instead of basing payments solely on loan balance and interest rate, this plan calculates payments based on discretionary income, which is the portion of income left after protecting a multiple of the federal poverty line.
Under this plan:
- Payments are capped at a percentage of discretionary income
- Borrowers with low income may qualify for very small or even $0 monthly payments
- Remaining balances may be forgiven after a defined repayment period
The Save Plan Payment Calculator gives you a clear estimate of what these rules mean for your specific financial situation.
How the Save Plan Payment Calculator Works
The calculator uses several key inputs to estimate payments accurately:
1. Student Loan Balance
This is your total outstanding federal student loan amount. While the SAVE plan focuses mainly on income, loan balance still affects repayment length and total paid over time.
2. Interest Rate
The interest rate helps estimate how your balance changes during repayment. While SAVE limits how interest impacts borrowers, it still plays a role in long-term projections.
3. Adjusted Gross Income (AGI)
Your AGI is the most important factor. The calculator uses it to determine how much of your income is considered discretionary after protected income is excluded.
4. Family Size
Family size directly impacts your protected income amount. A larger household increases the poverty threshold, which reduces discretionary income and lowers payments.
5. State of Residence
Federal poverty guidelines differ for:
- The 48 contiguous states
- Alaska
- Hawaii
The calculator automatically applies the correct guideline based on your selection.
Understanding Discretionary Income
Discretionary income is calculated by subtracting 225% of the federal poverty line from your annual income.
Formula used by the calculator:
Annual Income − (Poverty Line × 2.25) = Discretionary Income
If the result is negative, discretionary income is treated as zero, meaning your monthly payment could be $0.
How Monthly Payments Are Calculated
Once discretionary income is determined, the calculator applies the SAVE plan rule:
- 10% of discretionary income per year
- Divided into 12 monthly payments
This ensures payments remain affordable and proportional to earnings.
Repayment Period Explained
The calculator estimates how long repayment may last based on loan balance:
- Loans $12,000 or less → approximately 10 years
- Loans above that amount → up to 20 years
If your calculated payment pays off the loan earlier, the repayment period adjusts automatically.
Results You’ll See After Calculation
After clicking Calculate, the tool displays:
Monthly Payment
Your estimated monthly amount under the SAVE plan.
Annual Payment
Total amount paid in one year based on your income.
Payment as a Percentage of Income
Shows how much of your earnings go toward student loans.
Discretionary Income
Income remaining after poverty-level protection.
Federal Poverty Line
The official poverty guideline used in your calculation.
Repayment Period
Estimated number of years until payoff or forgiveness.
Total Amount Paid
Projected total payments over the repayment period.
These results help you understand whether SAVE is the right plan for your financial situation.
Example Calculation
Scenario:
- Loan Balance: $25,000
- Interest Rate: 5%
- AGI: $45,000
- Family Size: 2
- State: 48 contiguous states
Estimated Outcome:
- Monthly payment is significantly lower than standard repayment
- Payments are based on income, not loan size
- Repayment period extends up to 20 years
- Payments remain affordable even if income fluctuates
This kind of insight allows borrowers to plan confidently and avoid surprises.
Who Should Use This Calculator?
This tool is ideal for:
- Federal student loan borrowers
- Low-to-moderate income earners
- Borrowers with dependents
- Anyone considering switching to the SAVE plan
- Graduates planning long-term repayment strategies
Benefits of Using the Save Plan Payment Calculator
- ✔ Accurate income-based estimates
- ✔ Uses real federal poverty guidelines
- ✔ Considers family size and state
- ✔ Helps avoid overpayment
- ✔ Supports better financial planning
Important Notes
- Results are estimates, not official loan servicer calculations
- Actual payments may change if income or family size changes
- Only applies to eligible federal student loans
Frequently Asked Questions (FAQs)
1. What is the SAVE plan?
The SAVE plan is an income-driven repayment plan that bases payments on discretionary income instead of loan balance alone.
2. Can my monthly payment be $0?
Yes, if your income is low enough after poverty protection, your payment may be zero.
3. Does family size really matter?
Yes. A larger family increases protected income, reducing your required payment.
4. Are Alaska and Hawaii treated differently?
Yes. These states have higher poverty guidelines, which lowers discretionary income.
5. Does interest stop accumulating?
Interest may still accrue, but SAVE prevents unpaid interest from increasing your balance.
6. Is this calculator official?
No. It provides estimates to help with planning, not official loan figures.
7. Can I use this for private loans?
No. SAVE applies only to eligible federal student loans.
8. What income should I enter?
Use your Adjusted Gross Income (AGI), not gross salary.
9. Will payments change if my income changes?
Yes. SAVE payments adjust annually based on income updates.
10. How accurate is the total paid estimate?
It’s a close projection based on current inputs but may change over time.
11. Does loan balance affect monthly payment?
Indirectly. Income matters most, but balance affects repayment duration.
12. Is forgiveness included in the estimate?
The calculator focuses on repayment, not forgiveness amounts.
13. Can I use this calculator multiple times?
Yes. You can test different income and family scenarios.
14. Does filing jointly affect results?
Joint income can affect AGI, which changes payments.
15. Why should I use this calculator?
It helps you understand affordability before committing to a repayment plan.