Nowadays, technology has become an essential part of our daily life. It has proven its effectiveness in many areas. One of these areas is education, where interactive educational tools have appeared to facilitate many complex scientific concepts. Meanwhile, singular value decomposition (SVD) is a linear transformation method used in many applications such as image processing. This paper aims to propose an interactive learning tool-based Graphical User Interface (GUI) using MATLAB for SVD as a technique for applying the image compression. The tool provides the user a step by step illustration of the SVD technique for image compression and allows him to try the application by compressing an image. The tool developed using MATLAB 2019b. The interactive tool enables visualization of the image compression, and it is tested with ten students to evaluate the traditional learning method against the interactive learning method. The results showed that the tool improved the learning since the treatment group used it to get better or equal results in the theoretical questions. Also, they get much better results in the practical question. The tool could motivate the students to learn the topic since the treatment group was more satisfied than the control group.