Home Loan Tax Benefit Calculator — Know Your Exact Savings
Calculate how much tax you save on your home loan each year. Covers Section 80C (principal), Section 24(b) (interest), and Section 80EEA (first-time buyers).
What you'll need
- Loan amount and interest rate
- Loan tenure
- Which repayment year to calculate for
- Your income tax slab (old regime)
- Whether you are a first-time buyer
How It Works
Enter your loan details
Provide loan amount, interest rate, tenure, and the repayment year you want to calculate for.
Select your tax slab
Choose your income tax bracket under the old tax regime.
See your tax savings
Get deductions under Section 80C, 24(b), and 80EEA with total tax saved.
Tax Savings by Loan Amount & Slab (Year 1, 8.75%, 20yr)
| Loan Amount | Interest (Year 1) | Tax Saved (20%) | Tax Saved (30%) |
|---|---|---|---|
| ₹20L | ~₹1.73L | ₹36,400 | ₹54,600 |
| ₹30L | ~₹2.00L (cap) | ₹41,600 | ₹62,400 |
| ₹40L | ~₹2.00L (cap) | ₹41,600 | ₹62,400 |
| ₹50L | ~₹2.00L (cap) | ₹41,600 | ₹62,400 |
Includes 24(b) interest deduction (max ₹2L) + 80C principal deduction (max ₹1.5L). Includes 4% cess.
Frequently asked questions
What tax deductions can I claim on a home loan in India?
Under the old tax regime: Section 24(b) allows deduction of up to ₹2 lakh per year on interest paid for a self-occupied property. Section 80C allows deduction of up to ₹1.5 lakh per year on principal repaid. First-time buyers may additionally claim ₹1.5 lakh under Section 80EEA (for properties ≤ ₹45 lakh).
Can I claim home loan deductions under the new tax regime?
No. Under the new tax regime (Section 115BAC), deductions under Section 80C and Section 24(b) are not available. The new regime offers lower slab rates but removes most exemptions. You must opt for the old regime to claim home loan deductions.
What is Section 80EEA?
Section 80EEA provides an additional interest deduction of up to ₹1.5 lakh per year for first-time home buyers where the stamp duty value of the property does not exceed ₹45 lakh and the loan was sanctioned between April 2019 and March 2022 (extended). Check the latest notification for current status.
Does the tax benefit change each year?
Yes. In early years of repayment, the interest component is high and the 24(b) deduction is maximised. As the loan matures, more goes toward principal (80C). The actual deduction amounts change every year as the loan balance decreases.
Ready to see your tax savings?
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