Home Loan Tax Benefit Calculator
Work out the tax saved on home loan interest and principal under India's old tax regime, including joint borrowers.
About the Home Loan Tax Benefit Calculator
For a self-occupied home, interest up to ₹2 lakh a year is deductible under section 24(b), and principal counts toward the ₹1.5 lakh 80C limit (shared with other 80C investments). Co-owners who are also co-borrowers can each claim these limits. In the new regime, there's no deduction for a self-occupied home; for let-out property, interest is deductible against rent in both regimes.
The formula
Saving = (min(interest, ₹2 lakh) + min(principal, ₹1.5 lakh)) × tax rate
Worked example
Example: Tax saved per borrower = ₹1,12,200
- Inputs: Home loan interest paid this year: ₹3,30,000; Principal repaid this year: ₹1,30,000; Property: Self-occupied; Co-borrowers who are also co-owners: 1; Your marginal tax rate (old regime): 34%.
- Formula: Saving = (min(interest, ₹2 lakh) + min(principal, ₹1.5 lakh)) × tax rate
- Result: Tax saved per borrower = ₹1,12,200
Questions people ask
When can I start claiming?
Interest from the year construction completes; pre-construction interest is claimed in 5 equal parts afterwards.
Is there a benefit in the new regime?
Not for a self-occupied home.
Sources
The rules and rates this calculator uses come from the official pages below. Its results are estimates, not an official determination, and rules change, so check the latest figures there before you act on them.