IRS payment plan calculator: monthly payment, payoff time and total cost

How the IRS payment plan calculator works

The calculator treats your IRS balance like a loan that shrinks as you pay. Each month it adds interest and the failure-to-pay penalty to what is left, subtracts your payment, and repeats until the balance reaches zero. It then shows the level monthly payment that clears the balance in the number of months you pick.

This is an independent estimate, not an IRS tool. The IRS sets your actual terms when you apply, and your notices and IRS online account show the exact amount due. This tool is for planning before you apply, so you can choose a term you can keep up with.

Inputs: balance, months and rates

The 7% rate applies to individual underpayments for both July to September and October to December 2026. The rate for January to March 2027 is not yet announced; the IRS usually releases it in late November. Our underpayment interest rate page updates each quarter.

How much will my IRS payment be? Worked estimates

These estimates use 7% interest compounded daily and the 0.25% monthly penalty for on-time filers with an approved plan. They exclude the setup fee. Treat them as planning numbers, not IRS figures.

Two patterns stand out. Stretching a $10,000 balance from 36 to 72 months cuts the payment from about $323 to about $185, but the added cost roughly doubles, from about $1,620 to about $3,350. And if you did not file on time, the penalty stays at 0.5% a month, which raises the 72-month payment on $10,000 to about $201.

Quick minimum check

Divide your balance by 72 for a rough floor. If you leave the monthly amount blank on Form 9465, the IRS sets your payment by dividing the balance due by 72 months. On $30,000 that is about $417, before interest and penalties are added.

How long will it take to pay off my IRS balance?

Flip the calculator around: enter the payment you can afford and read off the months. As a rule, the balance must be paid within 72 months or by the collection statute expiration date, whichever comes first, for a standard plan. If your affordable payment does not get there, you may be looking at a partial payment installment agreement, which needs a full financial statement.

• Under 180 days and under $100,000: a short-term plan with no setup fee.
• Up to 72 months and $50,000 or less: a long-term plan you can set up online.
• Over $50,000: a long-term plan by phone or mail, with Form 433-F. See the Form 9465 instructions.

Why actual IRS totals differ

Your real payoff amount will not match the calculator to the dollar. The main reasons:

• Rates change quarterly. The interest rate is the federal short-term rate plus 3 points and can move every three months.
• The penalty applies to unpaid tax, not the whole balance. The calculator applies it to everything you owe, which slightly overstates the cost when part of the balance is interest or earlier penalties.
• The penalty has a cap. The failure-to-pay penalty stops growing at 25% of the unpaid tax.
• Full-month charging. The IRS charges the full monthly penalty even if you pay partway through the month.
• Penalty relief. If a penalty is removed through first-time or automatic relief, the interest on that penalty goes too.
• Fees. The setup fee is added separately; see our payment plan fees page.

Next step: apply for the plan

Once you have a payment that fits your budget, apply the cheapest way you qualify for. Online with direct debit costs $29; by phone or mail it costs $107 with direct debit or $178 without. Pick a due date a few days after payday to avoid a missed payment.

The IRS installment agreement page covers the terms you agree to, and the IRS payment plan guide compares every option if the numbers show a plan will not work.