Step 1: find your base percentage
RAP looks at your adjusted gross income (AGI) from your most recent tax return and picks one percentage for the whole amount.
| AGI | Yearly base payment |
|---|---|
| $10,000 or less | $120 |
| More than $10,000, up to $20,000 | 1% of AGI |
| More than $20,000, up to $30,000 | 2% of AGI |
| More than $30,000, up to $40,000 | 3% of AGI |
| More than $40,000, up to $50,000 | 4% of AGI |
| More than $50,000, up to $60,000 | 5% of AGI |
| More than $60,000, up to $70,000 | 6% of AGI |
| More than $70,000, up to $80,000 | 7% of AGI |
| More than $80,000, up to $90,000 | 8% of AGI |
| More than $90,000, up to $100,000 | 9% of AGI |
| More than $100,000 | 10% of AGI |
Step 2: divide by 12, subtract $50 per dependent
Monthly payment = yearly base payment ÷ 12 − $50 for each dependent you claim on your federal tax return. A dependent is someone who qualifies under section 152 of the tax code and is claimed on your return. Your spouse is not a dependent.
Step 3: apply the $10 floor
If the result is under $10, you pay $10.
Worked examples
| AGI | Dependents | Math | Monthly payment |
|---|---|---|---|
| $8,000 | 0 | $120 ÷ 12 | $10.00 |
| $35,000 | 0 | 3% × 35,000 = $1,050; ÷ 12 | $87.50 |
| $60,000 | 2 | 5% × 60,000 = $3,000; ÷ 12 = $250; − $100 | $150.00 |
| $100,000 | 1 | 9% × 100,000 = $9,000; ÷ 12 = $750; − $50 | $700.00 |
| $30,000 | 3 | 2% × 30,000 = $600; ÷ 12 = $50; − $150 | $10.00 (floor) |
The step-ups
Because the percentage applies to your whole income, crossing a band edge moves everything. At $50,000 the payment is $166.67 a month. At $50,001 it is 5% of the whole amount, $208.34 a month: $41.67 more for one more dollar of income. StudentAid.gov’s own table shows the same jump.
The bands are written into the law as dollar amounts. Nothing in the statute adjusts them for inflation, so as pay rises over the years, the same real income lands in higher bands.
What the formula does not use
RAP does not look at your loan balance or interest rate when it sets the payment. It does not use the poverty line or family size the way IBR does.
Not financial or legal advice. This page explains the published rules. It does not tell you which plan to choose. Your loan servicer and StudentAid.gov have the final word on your account.
Official sources
- Public Law 119-21 (H.R. 1, signed July 4, 2025), Title VIII, Secs. 81001–82004
- 34 CFR 685.209, income-driven repayment plans (current eCFR, as amended May 1, 2026)
- StudentAid.gov: One Big Beautiful Bill Act – Important Definitions (updated Aug. 24, 2026)
Last verified Oct 17, 2026. Corrections are logged on What changed.
Next guide: RAP vs IBR: how the two income-driven plans differ