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Home loan tax-benefit calculator

See the deductions your home loan unlocks under Sections 24(b) and 80C, and get an old-vs-new regime estimate — built on the loan's actual first-year interest and principal.

Tax rules: FY 2025-26 (AY 2026-27) · last reviewed

Estimate only — not tax advice. Based on FY 2025-26 (AY 2026-27) rules. Tax law changes; verify after each Union Budget and confirm with a qualified CA before acting. Surcharge (income above ₹50 lakh) is not modelled.
Property

Deductions your home loan unlocks (old regime)

Interest, Sec 24(b)
₹2,00,000
Principal, Sec 80C
₹1,09,707

Year-one interest is ₹2,52,709 from the loan schedule; the deductible amount is shown after the statutory cap.

Old regime

₹1,60,771

estimated tax

New regime

₹97,500

estimated tax

On these inputs, the new regime appears to save about ₹63,271.

Within the old regime, the home loan reduces your tax by about ₹81,029 this year. The new regime gives no deduction for a self-occupied home loan, so a low headline tax there can still be the better outcome. Confirm your choice with a professional.

How this calculator works

Most tax calculators ask you to type in your home-loan interest. This one takes your loan amount, rate and tenure and works out the first-year interest and principal from the actual amortization schedule (the same tested engine behind our home loan calculator), then applies the tax rules to those figures. Change the loan and the deductions move with it.

The rules it applies (FY 2025-26)

  • Section 24(b) — interest: deductible up to ₹2,00,000 a year for a self-occupied home; uncapped for a let-out property, though the house-property loss set off against other income is capped at ₹2,00,000.
  • Section 80C — principal: up to ₹1,50,000 a year, shared with your other 80C items.
  • New regime: the default regime allows none of these for a self-occupied home; only let-out interest against rental income.
  • Joint loan: each co-borrower who is also a co-owner can claim the limits independently on their share — set your share to model this.

What it deliberately leaves out

To stay honest, the tool does not model surcharge (which applies above ₹50 lakh of income), the pre-construction interest split (claimable in five instalments after possession), or every exemption you might have. It estimates the core comparison so you can see the shape of the decision — it is not a filing tool and not tax advice. The exact rules and our sources are on the methodology page, and the key terms are defined in the glossary.

Read more

Start with home loan tax benefits explained, then weigh up old vs new regime for borrowers, joint home loans, pre-construction interest and the five-year sale rule.

Frequently asked questions

Can I claim home-loan tax benefits in the new regime?
For a self-occupied home, no — the new regime (the default from FY 2023-24) disallows both the Section 24(b) interest deduction and the Section 80C principal deduction. For a let-out property you can still set the loan interest against the rental income, but a resulting loss can't be set off against your other income. The old regime is where the familiar ₹2 lakh + ₹1.5 lakh benefits live.
How much home-loan interest is tax-deductible?
Under the old regime, interest on a self-occupied home is deductible up to ₹2,00,000 a year under Section 24(b). For a let-out property the interest is uncapped against rental income, though the net house-property loss you can set off against other income is capped at ₹2,00,000 (the rest is carried forward).
And the principal repayment?
Principal repayment qualifies under Section 80C, within the overall ₹1,50,000 cap shared with your other 80C investments (EPF, ELSS, life insurance, etc.). Stamp duty and registration paid in the year of purchase also count. If you sell the house within five years, 80C benefits claimed earlier are reversed.
Should I choose the old or the new regime?
It depends entirely on your numbers — your income, your deductions and whether the home is self-occupied or let out. This tool estimates the tax under both and shows which appears lower for the inputs you enter, but it is an estimate, not advice. Confirm with a qualified CA before you decide.
Are these figures final?
No. They are estimates based on FY 2025-26 (AY 2026-27) rules and do not model surcharge (income above ₹50 lakh) or every individual situation. Tax law changes with each Union Budget — re-check after the next one, and treat this as a starting point rather than tax advice.