An IVA calculator estimates how much of your unsecured debt may be written off under an Individual Voluntary Arrangement, based on your income, living expenses, and total debt. Enter your financial details to see your estimated monthly IVA payment, total amount repaid, and the debt potentially cleared at the end of a standard five-year term.
IVACalc
How Much Debt Could You Write Off?
Enter your financial details below for an instant IVA estimate. Takes under 2 minutes.
🔒 100% Free⚡ Instant Results🇬🇧 England, Wales & N. Ireland
1Your Debts
2Income
3Expenses
4Results
Your Unsecured Debts
Include credit cards, personal loans, overdrafts, store cards, catalogues, HMRC arrears. Do NOT include mortgage, rent, or secured loans.
£
IVAs are generally suitable for debts of £5,000+IVAs require at least 2 creditors for standard approval
Homeowners with equity may need to extend IVA to 6 years
Your Monthly Income
Enter all sources of monthly income after tax (take-home pay).
£
Monthly take-home after tax & NI£
UC, child benefit, DLA/PIP (now included since IVA Protocol Apr 2025)£
£
Rental, child maintenance, etc.Total Monthly Income:£0
Your Monthly Expenses
Enter your essential living costs. These are assessed against Standard Financial Statement (SFS) guidelines. Only reasonable amounts are accepted by Insolvency Practitioners.
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£
£
£
£
£
£
£
£
£
Total Monthly Expenses:£0
Estimated Disposable Income:£0 / month
Estimated Monthly Payment
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Based on your disposable income
Estimated Debt Written Off
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At end of IVA term
Total Amount Repaid
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Over full IVA term
Estimated IVA Duration
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Standard term
📊 Detailed Financial Breakdown
📉 Debt Reduction Visualisation
RepaidWritten Off
⚠️ Important Disclaimer: This calculator provides estimates only, based on publicly available IVA guidance and industry data. Actual IVA payments, write-off amounts, and eligibility are determined by a licensed Insolvency Practitioner (IP) after a thorough assessment of your individual circumstances. This tool is not financial, legal, or debt advice. Always consult a qualified debt professional before making any decisions. IVAs are available to residents of England, Wales, and Northern Ireland only. Scottish residents should enquire about Protected Trust Deeds instead.
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What Is an IVA?
An Individual Voluntary Arrangement (IVA) is a legally binding debt solution available to residents of England, Wales, and Northern Ireland. Regulated under the Insolvency Act 1986 and overseen by The Insolvency Service, an IVA is a formal agreement between you and your creditors to repay as much of your unsecured debt as you can reasonably afford over a fixed term — typically five years. Any balance remaining at the end of the arrangement is legally written off.
An IVA is arranged and supervised by a licensed Insolvency Practitioner (IP), who acts as the appointed nominee and, once the arrangement is approved by creditors, as the ongoing supervisor. For creditors to approve an IVA, holders of at least 75% (by value) of the debt must vote in favour. Once approved, the arrangement is legally binding on all creditors included, meaning they cannot continue chasing you for those debts, adding interest, or taking legal action.
An IVA is generally considered only when unsecured debts exceed £5,000 and at least two separate creditors are owed money. It is one of the most significant formal debt-relief tools available in the UK, sitting between a Debt Management Plan (DMP) — which is informal and non-binding — and bankruptcy, which is more severe in its consequences.
How an IVA Payment Is Calculated?
The core calculation an IVA estimate is built on is your monthly disposable income — the amount left over each month after your essential living costs are subtracted from your total take-home pay. This surplus figure becomes the basis for your monthly IVA contribution.
The calculation follows three steps:
- Step 1 — Total Monthly Income: Add all post-tax income sources together: employment or self-employment earnings (after tax and National Insurance), any benefits or Tax Credits (including Universal Credit, Child Benefit, and DLA/PIP, which have been included in IVA assessments since the updated IVA Protocol of April 2025), pension income, and any other regular income such as rental income or child maintenance.
- Step 2 — Total Monthly Expenses: Add up all reasonable essential living costs as defined by the Standard Financial Statement (SFS) guidelines used by Insolvency Practitioners across the UK. These include rent or mortgage, Council Tax, gas, electricity and water, food and groceries, transport, phone and internet, childcare or school costs, insurance (home, car, and life), medical or prescription costs, and any other verified essential outgoings. The SFS sets trigger figures — spending above certain thresholds must be justified to the Insolvency Practitioner and creditors.
- Step 3 — Monthly Disposable Income: Subtract your total monthly expenses from your total monthly income. The resulting figure is your estimated disposable income, and it forms your monthly IVA contribution for the duration of the arrangement.
Total estimated repayment = Monthly disposable income × IVA term in months (typically 60 months).
From that gross contribution figure, the Insolvency Practitioner deducts their fees — a Nominee Fee (typically around £1,500–£2,000 for the setup), a Supervisor Fee (commonly 15% of contributions collected), and statutory disbursements. What remains after fees is distributed to creditors. If the total distributed to creditors is less than the original debt, the outstanding balance is written off at the end of the IVA.
How to Use This IVA Calculator?
The calculator uses a four-step guided process. Here is what to enter at each stage, based on the interface:
- Step 1 — Your Debts: Enter your total unsecured debt in pounds. Unsecured debts include credit cards, personal loans, overdrafts, store cards, catalogues, and HMRC arrears. Do not include your mortgage, rent arrears, or any secured loans — these are excluded from an IVA. Then select how many creditors you owe money to from the dropdown (an IVA typically requires at least two creditors for standard approval), and select your home ownership status, since homeowners with equity in their property may be required to extend their IVA to six years rather than five.
- Step 2 — Your Monthly Income: Enter all sources of monthly income after tax. The calculator provides four fields: Employment or Self-Employment income (your take-home pay after tax and National Insurance), Benefits and Tax Credits (Universal Credit, Child Benefit, DLA/PIP), Pension Income, and Other Income (rental income, child maintenance, etc.). Your running Total Monthly Income is displayed at the bottom of this screen as you type.
- Step 3 — Your Monthly Expenses: Enter your essential living costs across ten categories: Rent or Mortgage, Council Tax, Gas, Electric and Water, Food and Groceries, Transport and Travel, Phone and Internet, Childcare or School, Insurance (home, car, and life), Medical and Prescriptions, and Other Essential Costs. The calculator shows your Total Monthly Expenses and your Estimated Disposable Income (income minus expenses) in real time, so you can see the number updating as you fill in each field.
- Step 4 — Results: Click “Calculate My IVA Estimate.” The results screen displays your Estimated Monthly IVA Payment, Estimated Debt Written Off, Total Amount Repaid over the arrangement, and Estimated IVA Duration. A Detailed Financial Breakdown below the summary cards shows every line of the calculation — including Nominee Fee, Supervisor Fee, Disbursements, Total IP Fees, and Net Amount to Creditors — followed by a Debt Reduction Visualisation bar chart showing repaid versus written-off debt year by year. You can download a PDF report, copy your results, edit your inputs, or start over from this screen.
Worked Example 1 — Significant Debt Write-Off
Sarah is a 38-year-old nurse in Manchester. She has £28,000 of unsecured debt spread across a credit card, a personal loan, and an overdraft — three creditors in total. She rents her home.
Monthly income (take-home): £2,200
Monthly expenses (SFS-assessed): £1,650
Monthly disposable income: £550
IVA term: 60 months (5 years)
Gross contributions: £550 × 60 = £33,000
Nominee Fee: £1,650
Supervisor Fee (15% of £33,000): £4,950
Disbursements: £758
Total IP Fees: £7,358
Net to creditors: £33,000 − £7,358 = £25,642
Original debt: £28,000
Estimated debt written off: £2,358 (approx. 8.4%)
In this scenario, Sarah’s disposable income is high enough relative to her debt that most of it is repaid — but she still avoids the interest that would otherwise accumulate and resolves all three debts simultaneously through a single monthly payment.
Worked Example 2 — Higher Write-Off With Lower Disposable Income
James is a 45-year-old logistics worker in Cardiff with £35,000 of unsecured debt across four creditors (credit cards and a catalogue account). He rents and has two dependants.
Monthly income (take-home + Child Benefit): £1,950
Monthly expenses (SFS-assessed): £1,700
Monthly disposable income: £250
IVA term: 60 months (5 years)
Gross contributions: £250 × 60 = £15,000
Nominee Fee: £1,650
Supervisor Fee (15% of £15,000): £2,250
Disbursements: £758
Total IP Fees: £4,658
Net to creditors: £15,000 − £4,658 = £10,342
Original debt: £35,000
Estimated debt written off: £24,658 (approx. 70%)
James’s low disposable income means a substantial portion of his debt is written off at the end of the arrangement — while creditors still receive considerably more than they might in a bankruptcy scenario.
IVA vs Bankruptcy: Key Differences
Both an IVA and bankruptcy are formal insolvency solutions available under the Insolvency Act 1986, but they differ significantly in process, cost, control, and consequence.
Factor | IVA | Bankruptcy |
Duration | Typically 5 years (6 if homeowner with equity) | Typically discharged after 1 year |
Control of assets | You retain your assets, including home | Trustee may sell assets including your home |
Job impact | Minimal for most roles | Restrictions on certain professions (e.g. director, solicitor) |
Creditor approval | Required (75% by value must vote in favour) | Court-ordered — creditors cannot block it |
Credit file impact | Remains for 6 years from IVA start date | Remains for 6 years from bankruptcy order |
Cost | IP fees deducted from contributions | Court fee + Official Receiver fee (~£680 total) |
Debt write-off | Any remaining balance at end of term | Most unsecured debts discharged on discharge |
Suitable for | £5,000+ debt, regular income, multiple creditors | Debts that cannot realistically be repaid |
An IVA is generally preferable if you have a stable income and want to avoid the asset-seizure risk of bankruptcy. Bankruptcy may be more appropriate if your debts far exceed anything you could repay through contributions, or if you have very little in the way of assets or income.
Factors That Affect Your IVA Estimate
Several variables influence what the calculator returns, and understanding them helps you interpret your result accurately:
- Total unsecured debt: The higher your debt relative to your disposable income, the greater the proportion that is likely to be written off. Very high debt with modest income typically produces the largest write-off estimates.
- Monthly disposable income: This is the single most influential variable. A higher surplus means more is repaid to creditors and less is written off; a lower surplus does the opposite.
- Number of creditors: An IVA requires at least two creditors for standard approval. One-creditor situations are less straightforward and may require specialist advice.
- Home ownership and equity: Homeowners with equity in their property may be required to extend their IVA to a sixth year, during which they attempt to release equity through remortgaging to make a lump-sum contribution to the arrangement. This is assessed at the end of year five.
- Benefit income: Since the IVA Protocol update of April 2025, benefits including Universal Credit, DLA, and PIP are counted as assessable income. This may affect the disposable income figure for those who rely partly on benefits.
- IP fees: The Nominee Fee and Supervisor Fee reduce what creditors ultimately receive. These are standard market rates, but they do affect the net write-off figure, so the calculator models them explicitly.
Common Mistakes to Avoid
- Underestimating expenses: If you enter figures below what you actually spend, your disposable income will appear higher than it is, and you may be offered an IVA payment you cannot sustain. Use your actual bank statements as a reference.
- Including secured debts: Mortgage payments and secured loan payments are not included in an IVA. Including them inflates your expenses artificially and produces an inaccurate result.
- Forgetting all income sources: Benefits, Tax Credits, and irregular income sources (rental income, freelance work) must all be included in your monthly income figure for an accurate assessment.
- Assuming one creditor is enough: Most IVAs require at least two creditors. If you have only one, speak to an Insolvency Practitioner about alternative debt solutions.
- Treating the estimate as a guaranteed outcome: The calculator produces an estimate based on the figures you enter. The actual IVA payment, fees, and write-off amount are determined by your appointed Insolvency Practitioner following a thorough assessment and creditor vote.
- Ignoring the credit file impact: An IVA is registered on the Individual Insolvency Register and on your credit file for six years from the date the IVA starts. This affects your ability to obtain credit during and after the arrangement.
Frequently Asked Questions
An IVA calculator takes your total unsecured debt, monthly income, and monthly living expenses to estimate your monthly disposable income. That surplus figure becomes your monthly IVA contribution. The calculator then models a standard 60-month repayment term, deducts typical Insolvency Practitioner fees, and shows how much of your original debt would be repaid and how much might be written off at the end.
You may be eligible for an IVA if you are a resident of England, Wales, or Northern Ireland, have at least £5,000 of unsecured debt, owe money to at least two creditors, and have a regular income that produces some level of monthly disposable income. Final eligibility is determined by a licensed Insolvency Practitioner — the calculator provides a preliminary estimate, not a formal assessment.
The amount written off depends on the ratio between your total unsecured debt and your monthly disposable income over five years. People with high debt relative to their income may see 50–80% or more written off; those with higher disposable income relative to their debt may see a smaller write-off or none at all — but still benefit from legal protection and a single structured payment.
Your monthly IVA payment equals your assessed monthly disposable income — what remains after your essential expenses are subtracted from your take-home pay. This figure is determined by your appointed Insolvency Practitioner using Standard Financial Statement (SFS) guidelines and confirmed with creditors at the start of the arrangement.
For income, you need your monthly take-home pay after tax and National Insurance, plus any benefits, Tax Credits, pension income, and other regular income. For expenses, you need your actual monthly spending on rent or mortgage, Council Tax, utilities, food, transport, phone, childcare, insurance, and medical costs. Use your bank statements for accuracy.
IVAs cover unsecured debts: credit cards, personal loans, overdrafts, store cards, catalogues, payday loans, and HMRC arrears (including tax debts). Mortgage debts, secured loans, student loans, court fines, and child maintenance arrears are generally excluded and must continue to be paid separately.
It depends on your circumstances. An IVA allows you to retain your assets (including your home), has a more limited impact on certain professions, and is generally preferred when you have a stable income. Bankruptcy is typically discharged sooner (one year) and may suit those with very high debt and minimal income or assets. A licensed Insolvency Practitioner or a free debt advice service such as MoneyHelper can help you compare both options for your specific situation.
A standard IVA runs for five years (60 monthly payments). Homeowners who have equity in their property may be required to extend the arrangement to six years if they are unable to release equity through remortgaging. The duration is fixed at the start and cannot typically be shortened unless a lump sum is offered to creditors.
Disposable income (also called surplus income) is the amount left over each month after all essential living costs — as defined by the Standard Financial Statement (SFS) — are subtracted from your total monthly income. This figure is what you pay into the IVA each month. The SFS sets guideline amounts for each expense category; spending above those trigger figures must be justified.
Missing a payment without informing your Insolvency Practitioner can put the IVA at risk of failure. If an IVA fails, your creditors may pursue you for the full original debt and you could be made bankrupt. Most IPs will work with you to vary the arrangement if your financial circumstances change — you should contact your supervisor immediately if you are struggling to maintain payments.
The calculator provides a reliable estimate based on the figures entered, using standard IVA calculation methodology. However, it cannot account for every individual variable — including how creditors may assess specific expense claims, whether any windfalls (inheritance, bonus) would be contributed during the term, or how a particular IP structures their fees. Treat the result as an informed starting point, not a final offer.
An IVA is registered on the Individual Insolvency Register (publicly searchable) and on your credit file for six years from the date the IVA commences. This typically makes it difficult or impossible to obtain most forms of credit during that period. After the IVA completes and the six-year mark passes, the record is removed and you can begin rebuilding your credit profile.
Official Sources and Regulation
The IVA framework in the United Kingdom is governed by the Insolvency Act 1986, as amended by subsequent legislation, including the Enterprise Act 2002. The Insolvency Service — an executive agency of the UK Government — maintains the Individual Insolvency Register, where all IVAs are recorded and publicly searchable.
Licensed Insolvency Practitioners are regulated by recognised professional bodies including the Institute of Chartered Accountants in England and Wales (ICAEW), the Association of Chartered Certified Accountants (ACCA), and the Insolvency Practitioners Association (IPA). All IPs must comply with the IVA Protocol, a voluntary but industry-standard set of guidelines governing the assessment, documentation, and supervision of IVAs.
For free, impartial debt advice before entering any formal arrangement, the MoneyHelper service (formerly Money Advice Service) is available to all UK residents.
Important Disclaimer
This IVA calculator provides estimates only. The figures generated are based on the information you enter and publicly available IVA guidance; they are not a formal IVA proposal, a guarantee of eligibility, or a commitment from any creditor or Insolvency Practitioner. Actual IVA payments, write-off amounts, duration, and fees are determined by a licensed Insolvency Practitioner following a thorough individual assessment. IVAs are available to residents of England, Wales, and Northern Ireland only — Scottish residents should enquire about Protected Trust Deeds instead. This tool does not constitute financial, legal, or debt advice. Always consult a qualified, regulated debt professional before making any decisions about a formal insolvency arrangement.
Last Update: June 2026