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IRS Payment Plan Calculator

Enter what you owe and what you can afford each month. The calculator runs the plan month by month, including daily interest, the reduced failure-to-pay penalty and the IRS setup fee, so you see the real payoff date and total cost.

In short: What types of IRS payment plan are there?

A short-term plan gives you up to 180 days to pay in full with no setup fee. A long-term plan, or installment agreement, lets you pay monthly. Individuals can apply online for a long-term plan if they owe $50,000 or less in tax, penalties and interest and have filed all required returns; short-term plans are available online if you owe less than $100,000.

Last reviewed against 4 official sources.

Try an example:

Your balance and payment

How you'll set it up

Time to pay off

43 months

3 yr 7 mo · long-term installment agreement

Total you'll pay
$21,524.73
Interest during the plan
$2,448.53
Failure-to-pay penalty
$1,047.20
Setup fee
$29
Apply online?
Yes

IRS rates after 2026 aren't published yet; later months use the latest rate (7%).

Pay it in 6 months instead?

About $3,088 a month clears it within 180 days, a short-term plan with no setup fee and far less interest.

Your balance month by month

Paying $100 more a month clears it 8 months sooner and saves about $692.

What if you paid a bit more?

35 months instead of 43, with $2,804 of interest and penalty.

Where your money goes

16% of what you pay is interest, penalty and fees.

The link holds your numbers in the address. Nothing is sent to us.

How the calculation works

  1. Each day, interest is added at the IRS underpayment rate for that quarter and compounds.
  2. Each month, the failure-to-pay penalty is added, 0.25% if you filed on time, 0.5% if not, until it reaches 25% of the tax.
  3. Your payment comes off at the end of the month. This repeats until the balance reaches zero.
  4. If you clear it within six months it counts as a short-term plan with no fee; otherwise the long-term setup fee is added.

Worked example

You owe $18,000, filed on time and pay $500 a month by Direct Debit from November 2026. In the first month interest is about $103.85 and the penalty $45, so your balance drops by only about $351. The plan takes 43 months; you pay about $2,449 in interest, $1,047 in penalties and a $29 setup fee, roughly $21,525 in total.

What this calculator simplifies

  • The penalty is applied to the remaining balance; the IRS applies it to the unpaid tax, so the true penalty may differ slightly.
  • Interest rates after 2026 haven't been published and are assumed to stay at the latest rate.
  • Refund offsets and any new tax you owe are not included.

Reading the charts

Each chart redraws as you change the inputs and uses the same calculation as the result above. Choose "Show data" for the exact figures as a table, or download them as a CSV. "Copy link" saves your numbers in the page address so you can come back to the result or share it; nothing is sent to us.

Official sources

Figures last reviewed .

Frequently asked questions

What types of IRS payment plan are there?

A short-term plan gives you up to 180 days to pay in full with no setup fee. A long-term plan, or installment agreement, lets you pay monthly. Individuals can apply online for a long-term plan if they owe $50,000 or less in tax, penalties and interest and have filed all required returns; short-term plans are available online if you owe less than $100,000.

How much does an IRS payment plan cost to set up?

Short-term plans are free. A long-term plan paid by Direct Debit costs $29 online or $107 by phone, mail or in person. Paying another way costs $69 online or $178 otherwise. Low-income taxpayers pay nothing for Direct Debit plans and $43 for other plans, which may be reimbursed.

Do penalties and interest stop on a payment plan?

No. Interest keeps accruing daily on the unpaid balance at the quarterly rate (7% in late 2026). The failure-to-pay penalty continues too, but is halved to 0.25% a month during an approved plan if you filed the return on time. Paying more each month cuts both.

How much do I have to pay each month?

For plans you set up yourself, you choose the payment, as long as it clears the balance in a reasonable time. For larger balances or longer plans the IRS may ask for a Collection Information Statement to see what you can afford.

What happens if I miss a payment?

The plan can default, the full balance becomes due and the IRS can resume collection, including levies. Contact the IRS before you miss a payment. You can revise a plan online for a $6 fee, or $89 by phone or mail, and changes to Direct Debit plans are free.

Will the IRS take my refund while I'm on a plan?

Yes. Future refunds are normally applied to the balance until it is paid off. That doesn't replace your monthly payment.

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Disclaimer: This tool gives a general estimate based on what you enter and the published rules. It is not tax, legal or financial advice, and the tax authority makes the final decision. Speak to a qualified professional before acting. See our disclaimer.