Home Loan Tax Benefit Calculator
Calculate income tax savings on home loan interest (Section 24b) and principal repayment (Section 80C) for any year of your loan tenure.
This calculator is designed for India — rates and rules are based on Indian regulations. If you are outside India, the values may not apply to your country.
Enter which year of the loan to analyse (1 = first year)
How to use
- Enter loan amount, interest rate, and tenure.
- Enter the loan year you want to calculate for.
- Select old tax regime (new regime doesn't allow these deductions).
- Select your income tax slab.
- See your estimated tax savings.
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A home loan in India provides two major income tax benefits under the old tax regime. Section 24b allows deduction of home loan interest up to ₹2,00,000 per year for a self-occupied property (no limit for let-out property). Section 80C allows deduction of principal repayment up to ₹1,50,000 per year, shared with other 80C investments like PPF, ELSS, and insurance.
These deductions are only available under the old tax regime — the new tax regime (default from FY 2024-25) does not allow them for self-occupied properties. If your total deductions under the old regime (80C + 24b + 80D + HRA) exceed ₹3.75 lakhs, the old regime may save more tax despite higher slab rates.
Frequently Asked Questions
Can I claim home loan benefits under the new tax regime?
No — Section 24b and 80C deductions for self-occupied property are not available under the new tax regime. However, for a let-out (rented) property, interest on home loan can still be deducted from rental income under both regimes.
What is the maximum Section 24b deduction?
₹2,00,000 per year for a self-occupied property. For let-out property, the entire interest paid (no cap) can be deducted from rental income. Pre-construction interest can be claimed in 5 equal instalments starting from the year of possession.
Is principal repayment always eligible for 80C?
Yes, principal repayment on a home loan qualifies for 80C up to ₹1.5 lakhs per year. This is shared with other 80C investments. Note: stamp duty and registration charges also qualify for 80C in the year of payment.
Can both spouses claim tax benefits on a joint home loan?
Yes — if the loan is jointly taken and both are co-owners, each can claim up to ₹2L under 24b and ₹1.5L under 80C independently, effectively doubling the tax benefit for the household.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.