If your income falls near the phase-out zone for the student loan interest deduction, smart pre-tax contribution planning could restore your full deduction — saving you hundreds before you ever file. This tool helps you analyze and plan for the next year.
This tool helps you keep more of your hard earned money. By strategically planning future contributions, you can reduce the amount of taxes paid.
Tell us your gross income, how much student loan interest you've paid, and any pre-tax contributions you've already made this year to your 401(k), IRA, or HSA.
The tool computes your current MAGI, identifies where you sit in the 2025 phase-out range, and shows how much of your student loan deduction you currently qualify for.
Adjust the optimization sliders to see how shifting future contributions to pre-tax accounts affects your MAGI, your deduction, and your total estimated tax savings — in real time.
Pre-tax contributions to a 401(k), traditional IRA, or HSA reduce your Modified Adjusted Gross Income — the number the IRS uses to determine your deduction eligibility. If your MAGI is in or near the phase-out range, reducing it through planned contributions can restore a deduction you'd otherwise lose entirely. The result is two sources of savings: the tax reduction from the contribution itself, and the restored deduction value.
Enter your estimated or year-to-date figures, then use the sliders to explore how shifting future contributions could change your outcome.
Fill in your income and contribution details, then click Calculate to model your 2025 tax savings opportunity.
After calculating, interactive sliders will appear so you can model how shifting future contributions affects your deduction and total tax savings — in real time.
No personal data is collected or stored.
PlanWise Tools is a free, browser-based planning tool. All calculations happen entirely within your browser. If you choose to email your results using the optional email feature, only your email address and a plain-text summary of your inputs are transmitted to process your request. This information is stored in our email platform (MailerLite) solely to send your summary. No data is sold or shared with third parties.
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Contact
Questions about this policy? Email [email protected].
Last updated: March 2026
Data Source
All phase-out thresholds, contribution limits, and deduction rules are based on IRS Publication 970 (2025) and the 2025 federal tax brackets as published by the IRS.
MAGI Calculation
The tool estimates Modified Adjusted Gross Income (MAGI) by subtracting pre-tax contributions to a traditional 401(k), traditional IRA, HSA, and eligible educator expenses from gross income. This is a simplified estimate; your actual MAGI may differ based on other adjustments not captured here.
Deduction Phase-Out Formula
The student loan interest deduction phases out linearly between the lower and upper MAGI thresholds. For a given MAGI within the phase-out range, the deduction is calculated as:deduction = maxDeduction × (1 − (MAGI − lowerThreshold) / (upperThreshold − lowerThreshold))
Tax Savings Estimate
Tax savings are estimated by multiplying the applicable dollar amounts by the user's marginal federal income tax rate, determined by their estimated MAGI and filing status using 2025 tax brackets. State and local taxes are not included. The estimate reflects two components: direct tax reduction from pre-tax contributions, and the value of any restored student loan interest deduction.
Limitations
This tool is a forward-looking planning aid only. It does not account for AGI adjustments unrelated to the inputs provided, alternative minimum tax, the impact of Roth conversions, or state income taxes. Results are estimates and should not be relied upon as tax advice. Consult a qualified tax professional for guidance specific to your situation.
Last updated: March 2026