Magnetic drug targeting can be a strategy for effectively delivering phytochemicals in cancer treatment. Here, we demonstrate the benefit of magnetic targeting with superparamagnetic iron oxide nanoparticles for cytotoxicity enhancement of lutein (LUT) against breast cancer cells. Fabrication of LUT-loaded chitosan/alginate iron oxide nanoparticles (LUT-CS/Alg-FeO-NPs) was optimized by a statistical approach using response surface methodology based on the Box-Behnken design. The optimized LUT-CS/Alg-FeO-NPs with a balance among LUT concentration, copolymer coating, and iron ion concentration exhibited controlled size, narrow size distribution, better crystallinity, excellent saturation magnetization, and sustained-release profile. The negligible magnetic coercivity and remanent magnetization confirmed the superparamagnetism of the prepared NPs. The optimized LUT-CS/Alg-FeO-NPs were biocompatible while exhibiting a significantly enhanced cytotoxicity towards breast cancer MCF-7 cells upon exposure to a permanent magnet compared to free LUT with a 4-fold increase, suggesting the potential of LUT-CS/Alg-FeO-NPs as magnetically targeted delivery for breast cancer.