Student Loan Interest Deduction Calculator
Calculate student loan interest deduction with MAGI phase-out.
By Konstantin Iakovlev · Updated April 2026 · Source: IRS — Forms, Instructions & Publications
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 $170,000 for joint filers, and the deduction disappears completely once MAGI reaches $100,000 or $200,000, respectively. 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 Since Sarah's MAGI ($90,000) is within the phase-out range ($85,000 - $100,000) for single filers, her deduction is reduced. The phase-out range is $15,000 ($100,000 - $85,000). Her MAGI is $5,000 ($90,000 - $85,000) into the phase-out. This represents 33.33% ($5,000/$15,000) of the phase-out range. Therefore, 33.33% of the maximum deduction ($2,500) is reduced, which is $833.25.
- 3 Sarah's eligible student loan interest deduction for 2026 is $1,666.75 ($2,500 - $833.25).
- 4 This deduction of $1,666.75 will reduce Sarah's taxable income, potentially lowering her overall tax liability for the 2026 tax year. If her MAGI had been $85,000 or less, she would have been able to deduct the full $2,500 (or the actual interest paid if less).
Source: IRS — Forms, Instructions & Publications · Last updated: April 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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