Student Loan Interest Deduction Calculator

Estimate Your Student Loan Interest Deduction

The student loan interest deduction lets you write off up to $2,500 of interest paid each year. Enter your numbers below to estimate your deduction and the tax savings after the income (MAGI) phase-out.

How the Student Loan Interest Deduction Works

The student loan interest deduction is an above-the-line deduction, meaning you can claim it even if you take the standard deduction. It reduces your taxable income by the amount of qualifying interest you paid, up to a $2,500 annual cap. Your servicer reports the interest on Form 1098-E.

Income Limits and Phase-Out (2025-2026)

The deduction shrinks as your modified adjusted gross income rises and disappears entirely above the upper limit:

How Much Does the Deduction Save You?

The deduction lowers your taxable income, so your actual savings equal the deductible amount times your marginal tax rate. A $2,500 deduction at a 22% marginal rate saves about $550. The calculator above applies the phase-out and your bracket automatically.

For a deeper walkthrough of student loan taxes, including the forgiveness "tax bomb," see our full student loan tax guide and the interest deduction guide.