Home Loan Tax Benefit Calculator
Estimate your annual tax savings under Section 24(b) and Section 80C. See how much tax you save each year on interest and principal repayment — applicable under the old tax regime only.
Sec 24b
₹2L / yr
Interest deduction (self-occupied)
Sec 80C
₹1.5L / yr
Principal repayment deduction
Effective Rate
Reduced
Post-tax interest burden
Regime
Old only
Not available in new tax regime
Loan & Tax Details
Loan Amount
Annual Interest Rate
Loan Tenure
Other 80C Investments Already Made
Tax Bracket (old regime)
Property Type
Calculations use standard amortization (reducing balance method). Results are estimates only — applicable under the old tax regime. Consult a CA for your specific situation.
Year 1 — Tax Saved
₹89,853
Sec 24b: ₹2.00 L + Sec 80C: ₹99.5 K
At 30% slab on ₹2,99,511 total deduction in year 1.
Interest Paid (Yr 1)
₹4.21 L
Sec 24b deduction: ₹2.00 L
Principal Paid (Yr 1)
₹99.5 K
Sec 80C deduction: ₹99.5 K
Total Tax Saved
₹18.98 L
Over 20-yr tenure
Effective Rate
3.52%
vs 8.50% nominal
Note: Applicable under old tax regime only. Sec 24b cap is ₹2 lakh/yr for self-occupied property. 80C is shared with other eligible investments. Consult a CA for your specific situation.
Year-by-Year Tax Savings (First 5 Years)
Interest is highest in early years — so is the Sec 24b benefit.
| Year | Interest Paid | Sec 24b | Sec 80C | Tax Saved |
|---|---|---|---|---|
| Yr 1 | ₹4.21 L | ₹2.00 L | ₹99.5 K | ₹89,853 |
| Yr 2 | ₹4.12 L | ₹2.00 L | ₹1.08 L | ₹92,492 |
| Yr 3 | ₹4.03 L | ₹2.00 L | ₹1.18 L | ₹95,364 |
| Yr 4 | ₹3.92 L | ₹2.00 L | ₹1.28 L | ₹98,490 |
| Yr 5 | ₹3.81 L | ₹2.00 L | ₹1.40 L | ₹1,01,892 |
| Full Tenure | ₹54.14 L | ₹18.98 L |
Disclaimer: Tax deductions shown are applicable under the old tax regime only. Section 24(b) interest deduction is capped at ₹2 lakh/year for self-occupied property. Section 80C deduction (principal) is shared with other eligible investments (PPF, ELSS, LIC, etc.) and capped at ₹1.5 lakh/year. Let-out property allows full interest deduction but the house property loss set-off against other income is limited to ₹2 lakh/year. These estimates do not constitute tax advice. Consult a CA for your specific situation.
Frequently Asked Questions
Two main sections apply. Section 24(b) allows a deduction on interest paid — up to ₹2 lakh per year for a self-occupied property (no cap for let-out, but the loss set-off against other income is capped at ₹2 lakh). Section 80C allows a deduction on principal repayment — up to ₹1.5 lakh per year, shared with other 80C investments like PPF, ELSS, and LIC premiums.