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Medical Residents Blog

Financial Planning for Medical Residents

This page hosts blog posts specifically curated for medical residents. But it is not set up for public viewing. Try this link instead.

Discretionary Income and Student Loan Income Based Repayment Calculator

If you are on an income based repayment plan for your student loans, your monthly payment will be based on your household's "discretionary income". What is your discretionary income, and what can you expect your monthly student loan payments to be based on your discretionary income? Use this calculator to find out:

For Example

Let's assume in 2018 you are single with no children, have a pre-tax salary and total income of $45,000. You contributed $2,000 into your Health Savings Account (HSA), $5,500 into your qualified retirement accounts (IRA, 403(b), 401(k), etc), and paid $425.25 on student loan interest.

What would be your discretionary income, and what will be your monthly payments for student loans on an income-based repayment plan?

You can enter your own information in the grey boxes below to have this calculator determine your estimated Adjusted Gross Income (AGI), Discretionary Income (DI), and monthly student loan payments based on various income-based repayments plans.

It is important for those on income-based repayment plans to not only know what their estimated monthly payments will be, but also how they can get those payments even lower!

For more details on how your discretionary income, student loan payments, and saving for retirement all fit together, see our post here:

Case Study – How a University of Iowa Medical Resident Saved $263,000 on Student Loans WHILE Saving for Retirement


About this Calculator:

These numbers are for those in the lower 48 states only. Alaska residents should subtract an additional $4,560 from their Estimated Discretionary Income. Hawaii residents should subtract an additional $2,730 from their Estimated Discretionary Income.

These numbers are for 2018, and are subject to change in futures years.

This calculator is only for an estimation of your adjusted gross income (AGI) and Discretionary Income (DI). It should not be used for any tax purposes.

There are additional deductions besides the ones listed in this calculator that, although uncommon, may be applicable for your situation. In addition, these deductions may not apply to all taxpayers. This calculator