IVA vs DMP Comparison Calculator
Compare the arithmetic of an Individual Voluntary Arrangement and a Debt Management Plan side by side. An illustration only: it does not assess eligibility or recommend either.
Your figures
IVAs commonly run for around five years (60 months).
Ask any provider for a full written fee breakdown.
Illustration side by side
IVA (illustration)
Paid to creditors
£15,000.00
Over 5 years
Total you pay
£15,000.00
Left unpaid at the end
£5,000.00
Shown as written off in this illustration
DMP (illustration)
Paid to creditors
£20,000.00
Over 6 years 8 months
Total you pay
£20,000.00
Left unpaid at the end
£0.00
This is arithmetic only. It does not show whether you would be accepted for either option, and it is not a recommendation. Please speak to a free debt adviser before deciding.
General differences (not advice)
| IVA | DMP | |
|---|---|---|
| Legal status | A formal, legally binding agreement. | An informal arrangement. It is not legally binding. |
| Who arranges it | A licensed insolvency practitioner. | You, or a debt adviser or DMP provider acting for you. |
| Creditor agreement | Creditors vote on a proposal. If it is approved it binds the creditors included. | Each creditor chooses whether to accept. They are not obliged to. |
| Interest and charges | Normally frozen if the IVA is approved. | Creditors may freeze them, but do not have to. |
| What happens at the end | Debt left unpaid can be written off if you have kept to the terms. | The debt remains until it is repaid, unless creditors agree otherwise. |
| Public record | Entered on the public Individual Insolvency Register. | Not on a public register. |
IVA and DMP: the main differences
An Individual Voluntary Arrangement (IVA) is a formal, legally binding insolvency agreement arranged through a licensed insolvency practitioner. A Debt Management Plan (DMP) is an informal arrangement, where you agree reduced payments with your creditors, usually through a debt charity or company.
Both can affect your credit file and both carry risks and costs. This calculator shows only how the payments and timescales could compare for the figures you enter.
Get free advice before choosing
The right option depends on your whole situation: your income, assets, the type of debts and your home. Free, impartial advice is available from MoneyHelper, StepChange, Citizens Advice and National Debtline. Please speak to one of them before committing to any formal or informal arrangement.
How to use this calculator
- Enter your total unsecured debt and the monthly amount you could pay towards it.
- Enter the length of IVA you want to illustrate (IVAs commonly run for around five years) and any share of your payment that goes on fees.
- For the DMP, choose whether to assume interest is frozen, and enter an average APR if not.
How it is calculated
IVA illustration: you pay the same amount each month for the term. Whatever has not been paid by the end is shown as the amount that would be written off.
DMP illustration: you pay the same amount each month until the debt is cleared. Interest is either assumed frozen or added at your average APR.
In both cases the share you enter as fees is taken from each payment before it reaches creditors.
Worked example
With £20,000 of debt and £250 a month with no fees, a 60-month IVA illustration sends £15,000 to creditors and shows £5,000 written off. A DMP illustration with interest frozen takes 80 months to repay the full £20,000.
Assumptions and limits
- This is arithmetic only. It does not decide whether you are eligible for an IVA or a DMP, and it does not recommend either.
- In a real IVA, the amount you pay and the term are set by a proposal that creditors vote on, and the outcome is not guaranteed.
- In a real DMP, creditors are not obliged to freeze interest or accept your offer.
- Fee structures vary between providers. Ask any provider for a full written breakdown.
Common questions
Does this tell me whether I qualify for an IVA or DMP?
No. It only compares payment arithmetic. Eligibility depends on factors only a debt adviser or insolvency practitioner can assess.
Why would an IVA show money written off?
An IVA runs for an agreed term. Under an approved arrangement, remaining debt can be written off at the end if you have kept to the terms. The illustration shows the difference between your total debt and what you would pay in that term.
Are fees included?
Only the percentage of each payment you enter. Real fees vary by provider and arrangement, so ask for a written breakdown.
What else should I compare?
Look at the effect on your credit file, what happens to your home and other assets, the risk of failure, and the total fees, as well as the numbers shown here.
Related calculators
- Debt Consolidation CalculatorCompare your current debts with one consolidation loan, including fees.
- Debt-to-Income Ratio CalculatorYour monthly debt payments as a percentage of your gross income.
- IVA Budget CalculatorSee what income could be left after living costs, and what an IVA term might cover.
- Debt-Free Date CalculatorSee the month you could be debt-free using the snowball or avalanche method.
These calculators give estimates based on the figures you enter and the assumptions listed above. They are not financial advice. Your numbers are worked out in your browser and are not sent to us.
This page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised debt adviser before making important decisions about your money.