Free Tool
IRS Payment Plan Calculator
See what an IRS installment agreement really costs: how many months it takes to clear your balance at a given monthly payment, and how much penalty and interest you'll pay along the way. It runs privately in your browser — nothing is saved or sent.
How it works: on an approved plan the IRS keeps charging interest (about 6%/yr, reset quarterly) plus a reduced 0.25%/month late-pay penalty until you're paid off. Enter your balance and what you can pay each month to see your timeline and total cost.
Estimated time to pay off
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This is an estimate only, not an IRS determination. The IRS uses your exact dates and balance, resets the interest rate each quarter, charges interest on penalties too, and caps the failure-to-pay penalty at 25%. Setup fees ($22–$178) and eligibility rules apply. Your real figures can differ — confirm before relying on this.
Want the Lowest Payment the IRS Will Accept?
We set up IRS installment agreements every day — and often find a lower payment, a penalty removal, or a better option like an offer in compromise or currently not collectible status. We'll review your case free and tell you honestly what fits.
How IRS payment plans really work
An IRS installment agreement lets you pay your tax debt over time instead of all at once. The key thing most calculators hide: the debt keeps growing while you pay. Interest compounds daily on the unpaid balance — about 6% a year for the quarter beginning April 1, 2026, reset every quarter — and the failure-to-pay penalty keeps running at a reduced 0.25% a month (down from 0.5%) as long as your plan stays in good standing, until it hits its 25% cap. So a small monthly payment can leave you paying for years and handing the IRS thousands in extra charges. Paying more each month is the single biggest lever to cut the total.
If you owe $50,000 or less, you likely qualify for a streamlined installment agreement — up to 72 months, no detailed financial disclosure, and you can set it up online. Owe more and the IRS may ask for a full financial statement (Form 433-F or 433-A) and can limit the term to the time it has left to collect. There's a one-time setup fee — as low as $22 for an online direct-debit plan, up to $178 — and low-income taxpayers may get it waived or reimbursed.
A payment plan isn't always the cheapest path. If the balance is more than you can realistically pay before the collection statute expires, an offer in compromise or currently not collectible status may cost you far less. That's the honest math worth checking before you commit.
Common questions
How long can an IRS payment plan last?
A streamlined installment agreement for individuals who owe $50,000 or less can run up to 72 months (six years), with no detailed financial disclosure required. Larger balances can still get a plan, but the IRS may ask for financial information (Form 433) and may cap the term at the time left for it to collect (the collection statute).
Does interest keep adding up on an IRS payment plan?
Yes. Interest keeps accruing on the unpaid balance for the whole plan (about 6% per year for the quarter beginning April 1, 2026, reset quarterly), and the failure-to-pay penalty continues at a reduced 0.25% per month while the plan is in good standing, up to a 25% cap. That is why paying more each month costs you less overall.
What is the minimum monthly payment on an IRS payment plan?
For a streamlined plan the IRS generally wants at least your balance divided by 72. On a balance of $18,000, for example, that is about $250 a month. You can always pay more to finish faster and pay less penalty and interest.
Clarity Tax Relief is not affiliated with the IRS or any government agency. This calculator is general information, not individualized tax or legal advice; exact terms, penalties, interest, and eligibility depend on individual facts, and no outcome is guaranteed.
More tools: Offer in Compromise Calculator · CSED Calculator · Penalty & Interest Calculator · IRS Help Center. Reviewed by Melissa Ly, Chief Tax Officer.