What is my discretionary income?
Enter your adjusted gross income, family size and plan. The calculator subtracts the protected part of the poverty guideline and shows your income-driven payment.
- Discretionary income a year
- $26,060.00
Your discretionary income is $26,060.00 a year, and the plan’s payment is about $217.17 a month.
- Discretionary income a month
- $2,171.67
- Monthly payment
- $217.17
- Protected income
- $23,940.00
- Poverty guideline
- $15,960.00
Discretionary income a year: $26,060.00. Your discretionary income is $26,060.00 a year, and the plan’s payment is about $217.17 a month.
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Works out your discretionary income for federal student loan income-driven repayment (IBR, PAYE or ICR) from your income, family size and the 2026 poverty guideline.
Example with the default inputs (Adjusted gross income $50,000.00, Family size 1, Where you live 48 states and DC, Repayment plan IBR, new borrower (150%, 10%), Poverty guideline year 2026): Your discretionary income is $26,060.00 a year, and the plan’s payment is about $217.17 a month.
Method: Discretionary income = AGI − 150% (IBR, PAYE) or 100% (ICR) × (first person + (family size − 1) × each added person), at least 0; payment = 10%, 15% or 20% of it ÷ 12.
- HHS poverty guidelines for 2026 (or 2025), for the 48 states and DC, Alaska or Hawaii.
- IBR and PAYE payments are capped at the 10-year standard payment; ICR is the smaller of 20% of discretionary income and a 12-year payment adjusted for income. Those caps are not applied.
- The Repayment Assistance Plan (RAP), open from July 1, 2026, uses AGI without a poverty guideline, so it has no discretionary income.
Worked examples
Each example is checked against the calculator on every build.
- Adjusted gross income $50,000.00, Family size 1, Where you live 48 states and DC, Repayment plan IBR, new borrower (150%, 10%), Poverty guideline year 2026 gives Poverty guideline $15,960.00, Protected income $23,940.00, Discretionary income a year $26,060.00, Discretionary income a month $2,171.67, Monthly payment $217.17.Source: 34 CFR 685.209 (https://www.ecfr.gov/current/title-34/subtitle-B/chapter-VI/part-685/subpart-B/section-685.209): AGI − 150% of the guideline; HHS 2026 guideline $15,960 (https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines)
- Adjusted gross income $75,000.00, Family size 4, Where you live 48 states and DC, Repayment plan PAYE (150%, 10%), Poverty guideline year 2026 gives Poverty guideline $33,000.00, Protected income $49,500.00, Discretionary income a year $25,500.00, Monthly payment $212.50.
- Adjusted gross income $40,000.00, Family size 2, Where you live Alaska, Repayment plan ICR (100%, 20%), Poverty guideline year 2026 gives Poverty guideline $27,050.00, Discretionary income a year $12,950.00, Monthly payment $215.83.Source: ICR 100% and 20% (34 CFR 685.209)
- Adjusted gross income $30,000.00, Family size 3, Where you live 48 states and DC, Repayment plan IBR, borrowed before July 2014 (150%, 15%), Poverty guideline year 2026 gives Protected income $40,980.00, Discretionary income a year $0.00, Monthly payment $0.00.Source: 34 CFR 685.209: discretionary income is the greater of $0 and the difference
- Adjusted gross income $60,000.00, Family size 2, Where you live Hawaii, Repayment plan IBR, new borrower (150%, 10%), Poverty guideline year 2025 gives Poverty guideline $24,320.00, Discretionary income a year $23,520.00, Monthly payment $196.00.
How it works
Poverty guideline. For a family of n people, guideline = first person + (n − 1) × each added person:
| Year | Region | First person | Each added person |
|---|---|---|---|
| 2026 | 48 states and DC | $15,960 | $5,680 |
| 2026 | Alaska | $19,950 | $7,100 |
| 2026 | Hawaii | $18,360 | $6,530 |
| 2025 | 48 states and DC | $15,650 | $5,500 |
| 2025 | Alaska | $19,550 | $6,880 |
| 2025 | Hawaii | $17,990 | $6,330 |
Plans (34 CFR 685.209 and StudentAid.gov):
| Plan | Protected income | Share paid |
|---|---|---|
| IBR, first borrowed on or after July 1, 2014 | 150% of guideline | 10% |
| IBR, borrowed before July 1, 2014 | 150% of guideline | 15% |
| PAYE | 150% of guideline | 10% |
| ICR | 100% of guideline | 20% |
Protected income = guideline × protected percent ÷ 100.
Discretionary income = the larger of 0 and (AGI − protected income), per year. A month = that ÷ 12.
Monthly payment = discretionary income × share paid ÷ 100 ÷ 12.
Each money result is computed from the exact typed AGI and rounded once, to the cent, half up.
Assumptions
- The payment shown is the income-based amount. IBR and PAYE never charge more than the 10-year standard payment, and ICR charges the smaller of this amount and a 12-year payment adjusted for income. Those limits need your loan balance and are not applied.
- Your servicer decides your family size and which year's guideline applies.
- The Repayment Assistance Plan has no discretionary income and is not shown.
When the data is out of date
The page uses the 2026 HHS poverty guidelines. After January 31, 2027 it keeps them until it is updated, and says so above the result.
Worked examples by hand
$50,000 AGI, single, IBR, 2026. Guideline = $15,960. Protected = 15,960 × 1.5 = $23,940. Discretionary income = 50,000 − 23,940 = $26,060, or 26,060 ÷ 12 = $2,171.67 a month. Payment = 26,060 × 0.10 ÷ 12 = 217.166…, so $217.17.
$75,000 AGI, family of 4, PAYE, 2026. Guideline = 15,960 + 3 × 5,680 = $33,000. Protected = $49,500. Discretionary income = $25,500. Payment = 2,550 ÷ 12 = $212.50.
$40,000 AGI, family of 2 in Alaska, ICR, 2026. Guideline = 19,950 + 7,100 = $27,050, all protected. Discretionary income = $12,950. Payment = 12,950 × 0.20 ÷ 12 = 215.833…, so $215.83.
$30,000 AGI, family of 3, older IBR, 2026. Protected = 1.5 × 27,320 = $40,980, more than the AGI, so discretionary income and the payment are $0.
$60,000 AGI, family of 2 in Hawaii, IBR, 2025 guideline. Guideline = 17,990 + 6,330 = $24,320; protected = $36,480. Discretionary income = $23,520; payment = 2,352 ÷ 12 = $196.00.
Other questions people ask
How is discretionary income calculated for student loans?
It is your adjusted gross income minus 150% of the HHS poverty guideline for your family size and state (IBR and PAYE), or minus 100% of it (ICR). It is never below zero.
What is 150% of the poverty guideline in 2026?
For one person in the 48 states and DC, it is 1.5 × $15,960 = $23,940. For a family of 4 it is 1.5 × $33,000 = $49,500.
How much is my IBR payment?
Borrowers since July 1, 2014 pay 10% of discretionary income a year, divided by 12; earlier borrowers pay 15%. With $26,060 of discretionary income, 10% is $2,606 a year, or $217.17 a month.
What if my income is below 150% of the poverty guideline?
Then your discretionary income is $0 and your IBR or PAYE payment is $0 a month.
Does the new Repayment Assistance Plan use discretionary income?
No. The Repayment Assistance Plan (RAP), open from July 1, 2026, charges 1% to 10% of adjusted gross income, minus $50 a month for each dependent. It does not subtract a poverty guideline.