Home Loan Tax Benefit Calculator

See how much income tax your home loan saves each year. Enter the loan, choose self-occupied or let-out, and add a co-borrower if you have one. It splits your EMIs into interest and principal and applies the 24(b) and 80C limits.

Your home loan

Loan amount

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Interest rate (p.a.)

Loan tenure

Show the benefit for loan year

How is the property used?

Who repays the loan?

80C already used (EPF, PPF, insurance), per borrower

₹

Your tax slab (old regime)

How it's calculated

The calculator builds your loan's repayment schedule, adds up the interest and principal for the year you choose, and applies the old-regime deductions:

Interest, Section 24(b): for a self-occupied home, up to ₹2 lakh a year per person. If you let the property out, the interest is deductible without a fixed limit, but a loss from house property can be set off against other income only up to ₹2 lakh a year, and the rest is carried forward.
Principal, Section 80C: the principal you repay counts toward the ₹1.5 lakh 80C limit, shared with EPF, PPF, insurance and so on.
Co-borrowers: each owner who also repays the loan can claim their own share, which doubles the interest limit for a self-occupied home.

Example: a ₹50 lakh loan at 8.5% over 20 years has an EMI of ₹43,391. In year 1 you pay about ₹4,21,182 as interest and ₹99,511 as principal. For a self-occupied home you can deduct ₹2,00,000 of interest and ₹99,511 of principal, which at the 30% slab saves roughly ₹93,448 in tax that year.

Assumes EMIs start at the beginning of year 1 and the loan is for buying or building a house. Interest paid before possession (pre-construction interest) can be claimed in five equal parts from the year of possession, and is not included. Under the new tax regime, interest on a self-occupied home is not deductible, and a loss on a let-out house cannot be set off against other income. Rules are those in force in October 2026, and the Income-tax Act 2025 renumbers the sections, so check the current position or a tax professional. Compare regimes in the old vs new tax regime guide and plan the loan itself with the EMI calculator.

Frequently asked questions

How much tax can I save on a home loan?

For a self-occupied home you can deduct up to ₹2 lakh of interest under 24(b) and up to ₹1.5 lakh of principal under 80C, shared with your other 80C items, in the old regime. At the 30% slab that is about ₹1.1 lakh a year at best. A co-borrower can claim their own share, which raises the combined interest deduction.

Can both spouses claim the home loan deduction?

Yes, if both are co-owners and both repay the loan. Each can claim up to ₹2 lakh of interest and use their own 80C limit, in proportion to their share. The loan certificate and ownership should reflect that.

Is there a home loan tax benefit in the new tax regime?

Not for a self-occupied home, because the interest deduction is not available. For a let-out property, interest is deductible against rent, but any loss cannot be set off against your other income. The income tax calculator compares the two regimes for you.