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Education Loan Interest Deduction Calculator

Work out education loan interest deduction instantly with clear inputs, formula shown and shareable results.

About Education Loan Interest Deduction Calculator

Interest on a qualifying education loan is fully deductible with no monetary cap, but only for a limited number of years from the start of repayment. Principal repayment gets no relief under this head.

Formula

Education loan relief

Deduction = full interest paid, available for up to eight assessment years

Worked example

With the default values below, Education Loan Interest Deduction Calculator returns Deduction Available of $95,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Interest Paid In The Yearminimum 0
95,000
Marginal Tax Rateaccepts 0–60 %
30 %
Years Already Claimedaccepts 0–8
3

Results

Deduction Available
$95,000.00
Tax Saved
$28,500.00
Claim Years Remaining
5
Interest Cost After Relief
$66,500.00

Step by step

  1. 1Values used
  2. 2Education loan relief
  3. 3Deduction Available= 95,000.00
  4. 4Tax Saved= 28,500.00
  5. 5Claim Years Remaining= 5
  6. 6Interest Cost After Relief= 66,500.00

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.

Frequently Asked Questions

Is there a monetary limit?

No. The whole interest qualifies, which makes it one of the more valuable deductions for large loans.

Who can claim it?

The borrower, which may be the student or a parent who took the loan for the student's higher education.

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