Student Loan SAVE vs PAYE Calculator

How this SAVE vs PAYE calculator sets monthly payments

This SAVE vs PAYE calculator begins with the income picture that matters most for an income-driven repayment estimate: borrower income, any spouse income that should be included, and the household size that shapes the poverty allowance. From there it applies the plan rules differently for SAVE and PAYE. SAVE uses the larger income exclusion and a blended rate tied to the undergraduate share you enter, while PAYE uses a flat percentage of discretionary income and may be limited by the standard ten-year benchmark if that amount is lower.

Residence and family size change the result because the calculator adjusts the poverty-guideline baseline before it computes discretionary income. A larger family size lowers the amount treated as available for repayment, and the residence selector shifts that baseline for the contiguous states, Alaska, or Hawaii. That means two borrowers with the same balance and interest rate can end up with very different monthly bills if the household size or region is different.

Filing status also matters because it decides whether spouse income is included in the comparison. If you choose married filing jointly, the calculator combines borrower and spouse income before subtracting the allowance; if you choose married filing separately, it keeps the borrower figure on its own. That makes the comparison useful for couples who want to see how the tax-filing decision changes SAVE and PAYE without having to rebuild the numbers by hand.

Simulating SAVE and PAYE repayment and forgiveness

This SAVE vs PAYE calculator then carries the first payment forward month by month so you can compare both plans on the same starting balance. The simulation shows how much would be paid, how much interest would accumulate, and how much of the loan would still be standing at the end of the selected term. Because the estimate starts from a fixed snapshot, it is most useful as a planning tool for side-by-side comparisons, not as a forecast for every future income change or policy update.

Under SAVE, the model keeps the balance from growing when the scheduled payment does not cover the month’s interest, which reflects the interest-subsidy behavior built into the calculator. Under PAYE, unpaid interest is not handled the same way, so the balance can continue to rise when the payment is too small. That difference is important because it can make two otherwise similar borrowers end up with very different projected forgiveness amounts even when the first monthly payment looks close.

Forgiveness timing depends on the loan mix you enter. The calculator shortens the SAVE horizon when the debt is entirely undergraduate and uses the longer SAVE term when there is graduate borrowing in the mix. PAYE is modeled with its own fixed forgiveness horizon. The comparison table below shows the monthly payment, the projected amount paid over time, and the balance left at the end of the term so you can judge whether lower monthly payments are worth a larger remaining balance later.

Standard repayment benchmark in a SAVE vs PAYE comparison

For a SAVE vs PAYE comparison, the standard ten-year payment acts as the benchmark that tells you when PAYE’s cap is likely to matter. If you fill in the standard payment field, the calculator uses that value directly; if you leave it blank, it derives a benchmark from the balance and interest rate over 120 months. That makes the comparison practical even when you only know the basic loan details and want a reasonable reference point.

When the PAYE estimate rises above the standard amount, the calculator stops it at that benchmark rather than letting the monthly bill climb without limit. SAVE does not use the same cap in this model, so it can fall well below the benchmark when income is modest or household size is large. Looking at the benchmark alongside the income-driven amount helps you see whether the plan choice is being driven by the payment rate itself or by the cap.

The quick table below summarizes the key differences many borrowers notice first: the discretionary-income allowance, the payment rate, and the forgiveness term. Use it as a reference while you compare your own scenario, especially if you are deciding between a lower monthly payment today and a shorter road to forgiveness later.

Tax treatment at forgiveness can change over time, so treat any projected forgiven balance as a planning figure rather than a tax prediction. If a large amount might still remain at the end of the SAVE or PAYE term, it is worth thinking ahead about whether you would want to set aside savings, increase retirement contributions, or ask a tax professional how the final amount should be handled. The forgiven-balance output is most useful as a signal of scale, not as a substitute for tax advice.

Planning tips and next steps after a SAVE vs PAYE comparison

Once you have a SAVE vs PAYE result, use the copy button to save the narrative summary and keep it with your recertification notes, budget worksheet, or questions for a servicer call. The comparison is most helpful when you revisit it after a raise, a change in filing status, a new dependent, or a shift in spouse income, because those are the inputs that most often move the payment.

If you expect your income to rise, rerun the calculator with a higher AGI to see whether PAYE’s cap or SAVE’s lower allowance gives you more breathing room during the transition. If your income is likely to fall, check whether SAVE produces a payment that is small enough to protect cash flow without letting the balance grow too quickly. The value of the calculator is in showing those trade-offs before they show up on a bill.

Borrowers pursuing public service should also compare the result against their broader forgiveness strategy. A lower monthly payment can be helpful during qualifying employment, but the right choice depends on how long you expect to stay in that path and whether your household numbers make one plan consistently cheaper than the other. This is the kind of scenario where a side-by-side SAVE and PAYE estimate can prevent a rushed decision.

Limitations and assumptions in this SAVE vs PAYE estimate

This SAVE vs PAYE calculator is a planning tool, not a servicer quote, so it assumes a fixed starting income, a fixed starting payment, and no policy changes while the term runs. It does not model annual recertification changes, capitalization events, partial qualifying payments, or the tax impact of forgiveness. Use it to understand direction and scale, then confirm the final numbers with your loan servicer or another trusted source.

How to use this SAVE vs PAYE calculator

To compare SAVE and PAYE, begin with the loan and household details that drive the payment calculation, then review the two plan estimates side by side.

1. Enter Current loan balance ($) so the comparison starts from the principal you are planning around.
2. Enter Interest rate (%) so the repayment estimate can track how the balance changes each month.
3. Enter Borrower adjusted gross income ($) to set the income base that SAVE and PAYE both use.
4. Fill in the remaining household details—Spouse income, Family size, Residence, and Tax filing status—then click Compare Plans and review the monthly payment, total paid, forgiven balance, and term.

Formula: how the SAVE and PAYE estimates are built

The SAVE vs PAYE estimate starts with household income, subtracts the poverty-guideline allowance for the family size and residence you choose, and then applies the rule for the plan you are testing. SAVE uses a blended percentage based on the undergraduate share you enter, while PAYE uses a flat ten percent of discretionary income before checking the standard-payment cap. The calculator then converts that annual amount to a monthly payment and simulates the loan over the selected term.

For the benchmark, the standard payment uses the amortization formula unless the interest rate is zero, in which case the calculator uses the balance divided by 120 months. That benchmark matters because it is the amount PAYE will not exceed in this model. The formula below shows the specific quantities the calculator uses, where H is household income after filing-status treatment, G is the poverty-guideline amount for the selected family size and residence, u is the undergraduate share, B is the loan balance, and r is the annual interest rate.

Once the payment is set, the calculator steps through the term month by month and estimates how much is paid and how much may remain for forgiveness. That is why the inputs that dominate the result are the household income base, the residence and family-size allowance, the filing status choice, and the undergraduate share. If the gap between SAVE and PAYE is larger than you expected, check those inputs first before assuming the balance or interest rate is the main reason.

Worked example: a household that may lean toward SAVE

Consider a SAVE vs PAYE case where a borrower has moderate income, a household larger than one person, and a balance that includes at least some undergraduate borrowing. In that kind of scenario, the larger SAVE income allowance and blended rate can produce a smaller monthly payment than PAYE, especially if spouse income is not included. PAYE can still be attractive when the standard-payment cap keeps the bill from rising too far, but it does not get the same benefit from the undergraduate share. The calculator makes that trade-off visible by showing the monthly payment, the amount paid over time, and the balance left to forgive at the end of the term.

If your own numbers feel close to that pattern, try changing just one lever at a time: filing status, spouse income, family size, region, or undergraduate share. That sort of side-by-side test tells you which part of the household picture is doing the heavy lifting and which part only nudges the outcome. The result is not meant to pick a plan for you; it is meant to show why SAVE and PAYE can land in very different places even when the same balance and interest rate are entered.