TOOL

Home Loan Tax Calculator

Calculate your Section 24(b) interest deduction, 80C principal benefit, and total tax savings on your home loan. Compare Old vs New Regime for FY 2026-27.

What each input means

Loan amount — the principal you actually borrowed at disbursement.
Annual interest rate — the reducing-balance rate on your sanction letter, in percent.
Tenure — the repayment period in years; drives the EMI and the interest/principal split.
Property status — self-occupied (₹2L 24(b) cap, old regime) vs let-out (no cap, but loss is ring-fenced).
Regime — old has 24(b) + 80C; new gives nothing for self-occupied interest.

What this is doing

Two separate calculations. First, an amortization schedule: fixed EMI on a reducing balance, with the first 12 months' interest and principal summed as "Year 1". Second, the tax map: interest becomes the Section 24(b) deduction (capped ₹2,00,000 for self-occupied in the old regime, uncapped for let-out, zero in the new regime for self-occupied); principal becomes 80C (capped ₹1.5L, old regime only). Tax saved is the total deduction × 30%.

Because interest is front-loaded in an amortizing loan, the early years carry the bulk of the 24(b) benefit — the tool shows Year 1, not an average.

Assumptions

FY 2026-27 limits: 24(b) ₹2,00,000 self-occupied (old regime); 80C ₹1.5 lakh.
A fixed interest rate for the whole tenure — no resets, no part-prepayments.
"Tax saved" uses a flat 30% slab, ignoring your actual marginal rate.
80C principal is treated as if the ₹1.5L basket were fully available to the home loan.
In the new regime, self-occupied interest and principal give zero benefit.
Co-borrower / joint-loan apportionment is not modelled.

Worked example — the default inputs

Loan ₹40,00,000 at 8.5% for 20 years. Self-occupied. Old regime.

EMI = ₹34,713/month (reducing balance)
Year-1 interest ₹3,36,946 → 24(b) capped at ₹2,00,000
Year-1 principal ₹79,609 → 80C ₹79,609
Total deduction ₹2,79,609 × 30% = ₹83,883 tax saved

Switch to the new regime on the same loan and both lines drop to ₹0 — the old regime keeps the full ₹83,883 here.

Limitations

Interest is treated as fixed-rate and flat over 20 years; floating resets change the Year-1 split.
The 30% "tax saved" is the top-slab estimate, not your actual marginal rate.
80C assumes the whole ₹1.5L basket is free for the loan — PF and ELSS already eat into it for most people.
Joint loans, under-construction interest (24(b) spread over 5 years), and let-out void/set-off details are simplified.
Stamp duty / registration under 80C is not included.
Not tax advice. Reconcile the interest split against your lender's amortization schedule before filing.

Questions people actually ask

How is the EMI computed?

Standard reducing-balance amortization: EMI = P·r·(1+r)^n / ((1+r)^n − 1), where r is the monthly rate (annual ÷ 12) and n the months. The interest-heavy early schedule this produces is why the Year-1 interest deduction is so large.

What is the Section 24(b) rule?

For a self-occupied home under the old regime, interest is deductible up to ₹2,00,000 a year. For a let-out property there is no cap. In the new regime, self-occupied interest gives no deduction — the tool shows ₹0 for that combination.

Why is the 80C principal "estimated"?

Principal repayment shares the ₹1.5 lakh 80C basket with PF, PPF, ELSS, and insurance. The tool counts the Year-1 principal toward 80C but you may already be using that basket for other instruments.

Does the tax benefit depend on my slab?

Yes — the tool's "tax saved" line multiplies the total deduction by a flat 30%, which is the top slab. If you are in a lower slab, the real saving is proportionally smaller.

Can I claim a deduction for a loan on a let-out property in the new regime?

Yes, interest against rental income is allowed, but the loss is ring-fenced within house property and cannot offset other income in the new regime beyond the set-off limits.

Which regime is better for a home loan?

Usually the old regime, precisely because 24(b) and 80C exist there. But if your income is modest and the slabs favour the new regime, it can still win. The reg-indication comparison at the bottom shows both.

Estimate only

This models a fixed, single-borrower loan at a flat slab. Floating rates, joint ownership, and your actual deduction position change every one of these numbers. Use it to frame the decision, then reconcile against your lender's statement and a CA.