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About the Home Loan Tax Benefit Calculator
Under the old tax regime a home loan carries two deductions. Section 24(b) allows up to ₹2 lakh a year of interest on a self-occupied property, and Section 80C allows the principal repaid within the overall ₹1.5 lakh ceiling — a ceiling your PF, insurance and ELSS are already competing for.
The effect is real but front-loaded: interest is highest in the early years, so the deduction is fully used then and tapers later. This calculator reports the total saving and, more usefully, the effective interest rate your loan carries after tax relief.
The formula
Available only under the old tax regime.
Things worth knowing
Frequently asked questions
Under the old regime, up to ₹2 lakh of interest under Section 24(b) and up to ₹1.5 lakh of principal under 80C. At a 30% slab that is roughly ₹1.09 lakh a year if both limits are fully used.
Not for a self-occupied property — neither the interest nor the principal is deductible. Interest on a let-out property remains deductible against the rental income even in the new regime.
Yes, where both are co-owners and co-borrowers and both service the loan. Each claims up to ₹2 lakh of interest and ₹1.5 lakh of principal in proportion to their share.
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