Student Loan Interest Deduction Calculator

How this calculator works

Qualified student-loan interest can produce an adjustment to income even without itemizing, subject to borrower and loan conditions. The deduction starts with eligible paid interest capped at $2,500. For 2026 it phases out at MAGI $85,000–$100,000 for supported nonjoint filers and $175,000–$205,000 jointly. Married filing separately is ineligible. This calculator shows the income reduction, not a promised refund or a deduction for principal. Use deduction-specific MAGI and established qualified interest rather than total loan payments.

Formula and rules

Deduction = min(qualified paid interest, $2,500) × clamp((phase-out end − MAGI) / phase-out width, 0, 1). Married-separate deduction = $0.

Assumptions and limitations

You are legally liable for the qualified loan and satisfy borrower, dependent and education-expense conditions. Interest is already established and not counted for another excluded benefit. No principal deduction, state-tax rules, tax-savings estimate, loan-forgiveness assessment or full return rounding.

Worked example

A single filer with $2,500 qualified interest and $92,500 deduction MAGI is halfway through the 2026 $85,000–$100,000 range. The illustrated deduction is $1,250.

Estimated student-loan interest deduction

$1,250.00

Interest capped before income phase-out

$2,500.00

Income phase-out reduction

50%

Entered interest not deducted

$1,250.00

Official sources and review

Reviewed against the sources below on 2026-10-06. Rates are held in versioned rule modules. Versioned rules, official source review and year-specific calculation tests.

• IRS Revenue Procedure 2025-32 ↗

  2026 Child Tax Credit and refundable caps, and student-loan interest deduction income thresholds.

• IRS Publication 970 ↗

  Qualified education-loan interest deduction, $2,500 cap, eligible borrower and filing-status restrictions.

Common questions