Home Loan Tax Benefit Calculator
See your EMI, year-1 interest & principal, and exactly how much income tax you save under Section 24(b), 80C and 80EEA — live, on one screen.
Amortization summary — first 5 years
Interest is highest early — so are your tax benefits| Year | Interest paid | Principal paid | Balance |
|---|
Claim every rupee of your home-loan tax benefit
A CA structures your 24(b), 80C and 80EEA claims and files your ITR accurately.
Disclaimer: Indicative estimate for a resident individual under the old tax regime (home-loan deductions are not available in the new regime for a self-occupied house). Actual benefit depends on your total income, other 80C usage and eligibility. Rates per Income-tax Act as amended by Finance Act 2025.
Home loan tax benefits at a glance
A home loan gives you three separate income-tax deductions under the old regime — on the interest you pay, on the principal you repay, and an extra interest deduction for eligible first-time buyers. Together they can cut a big chunk off your taxable income every year while you repay the loan.
Which section covers what
Each deduction has its own head of income, its own cap and its own conditions. This is how a home loan maps to the Income-tax Act for FY 2026-27.
| Section | What it covers | Max / year |
|---|---|---|
| 24(b) — self-occupied | Interest on home loan | ₹2,00,000 |
| 24(b) — let-out | Interest (full)* | No cap* |
| 80C | Principal repayment + stamp duty | ₹1,50,000 |
| 80EEA | Extra interest, first-time buyer | ₹1,50,000 |
| 80EE (older) | Extra interest, FY16-17 sanction | ₹50,000 |
Worked example — ₹40L @ 8.5% for 20 years
Here is exactly how the numbers flow for a self-occupied home in year 1, for someone in the 30% tax slab. The EMI stays fixed, but early EMIs are mostly interest — which is why the tax benefit is largest in the first years.
Key terms explained
Section 24(b)
Deduction for interest on a home loan. For a self-occupied house it is capped at ₹2,00,000 a year; for a let-out house the full interest is allowed against rent, subject to the ₹2L house-property set-off limit.
Section 80C (principal)
The principal portion of your EMI, plus stamp duty and registration in the year of purchase, qualifies under 80C — capped at ₹1,50,000 and shared with PPF, ELSS, EPF, LIC and other 80C items.
Section 80EEA
An additional ₹1,50,000 interest deduction, over and above 24(b), for first-time buyers whose loan was sanctioned between FY 2019-20 and 2021-22 on a property valued up to ₹45 lakh.
Amortization
Every EMI is split into interest and principal. Early on, most of the EMI is interest, so 24(b) is fully used and your tax saving peaks; over time the split flips toward principal.
What deductions are available on a home loan?
Interest up to ₹2 lakh a year on a self-occupied house under section 24(b), principal repayment within the ₹1.5 lakh limit of section 80C, and where eligible an additional interest deduction under section 80EE or 80EEA. All of these apply only under the old regime.
Is the interest deduction capped for a let-out property?
The full interest is deductible in computing house property income, but the resulting loss that can be set off against other heads is capped at ₹2 lakh a year. The unabsorbed loss is carried forward for eight years and set off only against house property income.
What about interest paid before possession?
Pre-construction interest, from the date of borrowing to the end of the year before completion, is allowed in five equal annual instalments starting from the year of completion — within the same overall ₹2 lakh cap for a self-occupied house.
Can co-borrowers both claim the deduction?
Yes, if both are co-owners and co-borrowers and both contribute to the repayment. Each claims in proportion to their share, so a couple can together claim up to ₹4 lakh of interest on a self-occupied property.
Are home loan benefits available under the new regime?
Only for a let-out property, where interest remains deductible in computing house property income. The section 24(b) deduction for a self-occupied house, section 80C principal and 80EE/80EEA are not available under the new regime.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.