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Abstract Magnetometers are essential instruments in space physics, but their measurements are often contaminated by various external interference sources. In this work, we present a comprehensive review of existing magnetometer interference removal methods and introduce MAGPRIME (MAGnetic signal PRocessing, Interference Mitigation, and Enhancement), an open‐source Python library featuring a collection of state‐of‐the‐art interference removal algorithms. MAGPRIME streamlines the process of interference removal in magnetic field data by providing researchers with an integrated, easy‐to‐use platform. We detail the design, structure, and functionality of the library, as well as its potential to facilitate future research by enabling rapid testing and customization of interference removal methods. Using the MAGPRIME Library, we present two Monte Carlo benchmark results to compare the efficacy of interference removal algorithms in different magnetometer configurations. In Benchmark A, the Underdetermined Blind Source Separation (UBSS) and traditional gradiometry algorithms surpass the uncleaned boom‐mounted magnetometers, achieving improved correlation and reducing median error in each simulation. Benchmark B tests the efficacy of the suite of MAGPRIME algorithms in a boomless magnetometer configuration. In this configuration, the UBSS algorithm proves to significantly reduce median error, along with improvements in median correlation and signal to noise ratio. This study highlights MAGPRIME's potential in enhancing magnetic field measurement accuracy in various spacecraft designs, from traditional gradiometry setups to compact, cost‐effective alternatives like bus‐mounted CubeSat magnetometers, thus establishing it as a valuable tool for researchers and engineers in space exploration and magnetism studies.