SAVE Plan Calculator Student Loans

Estimate your monthly payment on the new Saving on a Valuable Education (SAVE) plan.

What is the SAVE Plan Calculator for Student Loans?

A save plan calculator student loans 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 often results in the lowest monthly payment for most federal student loan borrowers. The calculator determines your payment by analyzing your income, family size, and loan details against the plan’s specific formula.

This calculator is for anyone with eligible federal student loans, including Direct Subsidized and Unsubsidized loans, and Grad PLUS loans. It is particularly beneficial for borrowers with low to moderate incomes relative to their student debt. A common misunderstanding is that this plan is available for private student loans, which it is not. It is exclusively for federal loans.

SAVE Plan Formula and Explanation

The core of the SAVE plan calculation is determining your “discretionary income.” Unlike other plans, SAVE defines this more generously, allowing you to shield more of your income from the payment calculation.

The primary formulas are:

• Discretionary Income = Adjusted Gross Income (AGI) – (225% of the Federal Poverty Line for your family size)
• Annual Payment = Discretionary Income × Payment Percentage
• Monthly Payment = Annual Payment / 12

The Payment Percentage is a weighted average based on your loan types. It’s 5% for undergraduate loans and 10% for graduate loans. If you have both, this save plan calculator student loans will determine the weighted average for you. For more on repayment options, see this guide on student loan repayment options.

Variables Table

Description of variables used in the SAVE plan calculation.

Variable	Meaning	Unit	Typical Range
AGI	Adjusted Gross Income	Currency ($)	$0 – $500,000+
Family Size	Number of people in your household	Count	1 – 10+
Loan Balance	Total amount of federal student loans	Currency ($)	$1,000 – $250,000+
Payment %	Percentage of discretionary income used	Percentage (%)	5% – 10%

Practical Examples

Example 1: Recent Undergraduate

A recent graduate has an AGI of $40,000, a family size of 1, and $30,000 in undergraduate loans.

• Inputs: AGI=$40,000, Family Size=1, Undergrad Loan=$30,000, Grad Loan=$0.
• Calculation: The poverty line for one person is $15,060. 225% of this is $33,885. Discretionary income is $40,000 – $33,885 = $6,115. The payment is 5% of this, so the annual payment is $305.75.
• Result: The estimated monthly payment is approximately $25.48.

Example 2: Mid-Career with Graduate Loans

A professional has an AGI of $85,000, a family of 3, $20,000 in undergrad loans, and $50,000 in grad loans.

• Inputs: AGI=$85,000, Family Size=3, Undergrad Loan=$20,000, Grad Loan=$50,000.
• Calculation: The poverty line for a family of three is $25,820. 225% of this is $58,095. Discretionary income is $85,000 – $58,095 = $26,905. The weighted payment percentage is calculated based on the loan balances. The total annual payment is figured from this.
• Result: This save plan calculator student loans would calculate a precise monthly payment based on the weighted average of 5% and 10%. The estimated payment would be around $199.11 per month. To see how this compares to other plans, you might be interested in our income-driven repayment calculator.

How to Use This SAVE Plan Calculator for Student Loans

Using this calculator is a straightforward process to estimate your potential student loan payments.

1. Enter Your AGI: Input your Adjusted Gross Income from your most recent tax filing. This is the starting point for determining your discretionary income.
2. Provide Family Size: Enter the number of individuals in your household, including yourself.
3. Input Loan Balances: Enter your total federal undergraduate and graduate loan balances separately. This is crucial for the weighted average calculation.
4. Set Interest Rate: Provide the average interest rate for your loans. This helps calculate the interest subsidy and the standard plan comparison.
5. Calculate and Review: Click “Calculate Payment” to see your results. The tool will display your estimated monthly payment, key intermediate values, and a chart comparing your SAVE payment to a standard 10-year plan.

Key Factors That Affect Your SAVE Plan Payment

• Adjusted Gross Income (AGI): This is the most significant factor. A lower AGI leads to a lower monthly payment, and vice-versa.
• Family Size: A larger family size increases the poverty line threshold, which protects more of your income and lowers your payment.
• Loan Type (Undergrad vs. Grad): Because undergraduate loans use a 5% factor and graduate loans use 10%, the composition of your debt heavily influences the payment amount.
• Federal Poverty Line: The guidelines are updated annually by the Department of Health and Human Services. An increase in the poverty line will lead to lower payments for everyone on the SAVE plan.
• Tax Filing Status: If you are married and file taxes separately, your spouse’s income is excluded from the calculation, which could significantly lower your payment.
• State of Residence: Alaska and Hawaii have different poverty guidelines than the contiguous 48 states, which will affect the calculation for residents of those states. This calculator uses the guidelines for the 48 contiguous states.

Frequently Asked Questions (FAQ)

1. Is the SAVE plan the same as REPAYE?

SAVE is the replacement for the REPAYE plan. If you were on REPAYE, you were automatically enrolled in SAVE. SAVE offers more generous terms, such as a higher income protection threshold and a more robust interest subsidy.

2. What happens if my income is very low?

If your AGI is below 225% of the federal poverty line for your family size, your monthly payment will be $0. For a single person, this is an income of about $32,800 or less.

3. Does unpaid interest still grow on the SAVE plan?

No. One of the biggest benefits of the SAVE plan is that if your monthly payment does not cover the full amount of interest accrued that month, the government waives the remaining interest. This prevents your loan balance from growing over time (negative amortization).

4. Who is eligible for the SAVE plan?

Most borrowers with federal Direct Loans are eligible. The main exception is parents who took out Parent PLUS loans; these loans are not eligible for SAVE unless consolidated. For more info, consider using a student loan consolidation calculator.

5. How long until my loans are forgiven on SAVE?

Forgiveness depends on your original loan balance. For borrowers with original balances of $12,000 or less, forgiveness occurs after just 10 years of payments. The timeline increases by one year for each additional $1,000 borrowed, up to a maximum of 20 or 25 years.

6. Is my monthly payment always the same?

No. You must recertify your income and family size annually. If your income or family size changes, your payment will be recalculated for the next 12 months.

7. Can I use this save plan calculator student loans for private loans?

No, this calculator is only for federal student loans. Private lenders do not offer the SAVE plan. Explore options like a private student loan calculator for those loan types.

8. What counts as ‘family size’ for federal student aid?

Family size includes yourself, your spouse if you file taxes jointly, and any children or other dependents who receive more than half of their support from you.