About the Home Loan Tax Benefit Calculator
What is the Home Loan Tax Benefit Calculator?
A home loan offers two deductions: interest under Section 24(b), up to ₹2 lakh a year for a self-occupied home, and principal repayment under Section 80C within the ₹1.5 lakh limit. This home loan tax benefit calculator shows the tax each deduction saves.
Co-owners who are also co-borrowers can each claim their share, so a joint loan can double the benefit. For a let-out home, the full interest is deducted from the rent.
How to use the Home Loan Tax Benefit Calculator
- Home Loan Interest Paid This Year (₹) (sample: 3,50,000)
- Principal Repaid This Year (₹) (sample: 1,20,000)
- Property Is (sample: Self-occupied)
- Other 80C Investments (₹) (sample: 60,000)
- Number of Co-Owners Sharing the Loan (sample: 1)
- Your Income Tax Slab Rate (sample: 30%)
- Press Calculate Home Loan Tax Benefit (results also refresh as you type). The result card shows the Tax Saved This Year, along with Interest deduction per owner (Sec 24(b)), Principal deduction per owner (Sec 80C), Tax saved per owner and Regime note.
Formula used
Tax saved = (Interest deduction + Principal deduction) × Slab rate × 1.04
- Interest deduction = min(interest share, ₹2,00,000) for a self-occupied home
- Principal deduction = min(principal share, ₹1,50,000 − other 80C investments)
Both deductions for a self-occupied home are available only in the old tax regime.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Home Loan Interest Paid This Year (₹) | 3,50,000 |
| Principal Repaid This Year (₹) | 1,20,000 |
| Property Is | Self-occupied |
| Other 80C Investments (₹) | 60,000 |
| Number of Co-Owners Sharing the Loan | 1 |
| Your Income Tax Slab Rate | 30% |
| Result | Value |
|---|---|
| Tax Saved This Year | ₹90,480 |
| Interest deduction per owner (Sec 24(b)) | ₹2,00,000 |
| Principal deduction per owner (Sec 80C) | ₹90,000 |
| Tax saved per owner | ₹90,480 |
| Regime note | Both deductions are available only in the old regime |
Tips for using the Home Loan Tax Benefit Calculator
- Take the loan jointly with your spouse if both of you pay tax and co-own the house.
- Stamp duty and registration also count under 80C in the year of purchase.
- If the new regime is better for you overall, these deductions do not apply to a self-occupied home.