Student Loan Interest Deduction Calculator
Calculate student loan interest deduction with MAGI phase-out.
By Konstantin Iakovlev · Updated September 2026 · Source: IRS Rev. Proc. 2025-32 — 2026 inflation-adjusted amounts
Deduction Amount
$0.00
Est. Tax Savings (22%)
$0.00
Phase-Out Details
| Interest Paid (max $2,500) | $0.00 |
| Phase-out Starts | $85,000.00 |
| Phase-out Ends | $100,000.00 |
| Your Deduction | $0.00 |
Use the Student Loan Interest Deduction Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Borrowers paying down education debt can often write off some of the interest, but the benefit narrows as income climbs. Working out your eligible amount for the 2026 tax year means applying the Modified Adjusted Gross Income (MAGI) phase-out rules, which decide how much of your interest survives. Pinning down that deductible figure feeds directly into accurate planning and helps you capture the full tax savings you are entitled to.
Two ceilings govern the result. The write-off cannot exceed $2,500, and it can never exceed the interest you actually paid, so the smaller of those two controls. Income then enters the picture: in 2026 the reduction starts at a MAGI of $85,000 for single filers and $175,000 for joint filers, and the deduction disappears completely once MAGI reaches $100,000 or $205,000, respectively (Rev. Proc. 2025-32). Between those thresholds, the allowable amount shrinks on a proportional sliding scale.
Only interest on a qualified student loan belongs in the calculation; fees, penalties, and principal payments do not count and should be excluded. The figure that trips up most people is MAGI itself, which starts from your AGI before certain deductions are added back, so confirm you have computed it correctly before relying on the result.
Example: Sarah, a single filer in 2026
- 1 Sarah paid $3,000 in student loan interest in 2026. Her Modified Adjusted Gross Income (MAGI) is $90,000.
- 2 The deduction starts from the smaller of the interest paid and the $2,500 cap, so $2,500. Her MAGI sits inside the 2026 single phase-out range of $85,000 to $100,000: $5,000 into a $15,000 range, or one third of the way through.
- 3 Reduction: $2,500 × $5,000 / $15,000 = $833.33. Sarah's deduction is $2,500 − $833.33 = $1,666.67, the figure the calculator shows.
- 4 The $1,666.67 lowers her taxable income; at the calculator's assumed 22% rate that is about $366.67 of tax saved. With MAGI of $85,000 or less she could have deducted the full $2,500.
Source: IRS Rev. Proc. 2025-32 — 2026 inflation-adjusted amounts · Last updated: September 2026
Frequently Asked Questions
How much student loan interest can I deduct?
What are the income limits for the student loan interest deduction?
Can I deduct student loan interest if my parents pay my loans?
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