Student Loan Interest Tax Deduction Calculator
Reviewed by Hamza Gujjar, Algorithm Architect & Software Developer
Last updated: July 28, 2026Student Loan Interest Tax Deduction Calculator
Paying off student loan interest can reduce your tax bill - this calculator estimates the potential savings.
Deductible Interest = min(Annual Interest Paid, $2,500 federal cap)
Estimated Tax Savings = Deductible Interest x Marginal Tax Rate
Example
$3,000 in annual interest paid, 22% marginal tax rate:
Deductible Interest = $2,500.00 → ~$550.00 estimated tax savings
Why the Deduction Caps at $2,500
The US federal student loan interest deduction is generally capped at $2,500 per year regardless of how much interest was actually paid, and it phases out entirely above certain income thresholds set annually by the IRS.
This Is a General Estimate, Not Tax Advice
This is a general estimate, not personalized tax advice - eligibility depends on your specific filing status, income level, and other factors that change from year to year, so a tax professional should confirm your actual eligibility and deduction amount.