Home Loan Tax Benefit Calculator
See exactly how much tax your home loan saves you — Section 24(b) interest deduction, Section 80EEA extra deduction for first-time buyers, and Section 80C principal repayment — broken down year by year against your actual EMI schedule.
Estimated Tax Saved — Year 1 (Old Regime)
EMI: ₹34,713/month · Total interest over tenure: ₹43.31 L
Year 1 Deduction Breakdown
80EEA not applied: 80EEA only applies to loans sanctioned between 1 Apr 2019 and 31 Mar 2022.
Old vs New Regime
Self-occupied home loan interest gets ₹0 benefit under the new regime — Section 115BAC disallows this deduction entirely, regardless of interest paid.
Total tax saved over full tenure (old regime)
₹15.59 L
Total tax saved over full tenure (new regime)
₹0
| Year | Interest Paid | Principal Paid | Total Deduction (Old) | Tax Saved (Old) | Tax Saved (New) |
|---|---|---|---|---|---|
| Year 1 | ₹3.37 L | ₹79,610 | ₹2.80 L | ₹73,759 | ₹0 |
| Year 2 | ₹3.30 L | ₹86,646 | ₹2.87 L | ₹75,222 | ₹0 |
| Year 3 | ₹3.22 L | ₹94,305 | ₹2.94 L | ₹76,815 | ₹0 |
| Year 4 | ₹3.14 L | ₹1.03 L | ₹3.03 L | ₹78,549 | ₹0 |
| Year 5 | ₹3.05 L | ₹1.12 L | ₹3.12 L | ₹80,437 | ₹0 |
| Year 6 | ₹2.95 L | ₹1.22 L | ₹3.22 L | ₹82,491 | ₹0 |
| Year 7 | ₹2.84 L | ₹1.32 L | ₹3.32 L | ₹84,726 | ₹0 |
| Year 8 | ₹2.73 L | ₹1.44 L | ₹3.44 L | ₹87,159 | ₹0 |
| Year 9 | ₹2.60 L | ₹1.57 L | ₹3.50 L | ₹88,400 | ₹0 |
| Year 10 | ₹2.46 L | ₹1.71 L | ₹3.50 L | ₹88,400 | ₹0 |
| Year 11 | ₹2.31 L | ₹1.86 L | ₹3.50 L | ₹88,400 | ₹0 |
| Year 12 | ₹2.14 L | ₹2.02 L | ₹3.50 L | ₹88,400 | ₹0 |
| Year 13 | ₹1.97 L | ₹2.20 L | ₹3.47 L | ₹87,687 | ₹0 |
| Year 14 | ₹1.77 L | ₹2.39 L | ₹3.27 L | ₹83,643 | ₹0 |
| Year 15 | ₹1.56 L | ₹2.61 L | ₹3.06 L | ₹79,241 | ₹0 |
| Year 16 | ₹1.33 L | ₹2.84 L | ₹2.83 L | ₹74,450 | ₹0 |
| Year 17 | ₹1.08 L | ₹3.09 L | ₹2.58 L | ₹69,235 | ₹0 |
| Year 18 | ₹80,578 | ₹3.36 L | ₹2.31 L | ₹63,560 | ₹0 |
| Year 19 | ₹50,879 | ₹3.66 L | ₹2.01 L | ₹57,383 | ₹0 |
| Year 20 | ₹18,556 | ₹3.98 L | ₹1.69 L | ₹50,660 | ₹0 |
Simplified model for a single self-occupied or let-out property held by one borrower — doesn't account for co-borrower splits, pre-construction interest, or multiple properties.
How Home Loan Tax Benefits Work
A home loan offers tax relief in two separate places. Section 24(b) lets you deduct the interest portion of your EMI — up to ₹2,00,000 a year if you live in the property yourself, or without a fixed cap if it's rented out (though the loss you can offset against your salary is capped at ₹2,00,000). Section 80C separately covers the principal portion of your EMI, up to ₹1,50,000 a year — but this limit is shared with every other 80C investment you make, like PPF, ELSS, or life insurance premiums.
First-time buyers of affordable housing get one more layer: Section 80EEA adds a further ₹1,50,000 interest deduction on top of the 24(b) cap, provided the property's stamp duty value doesn't exceed ₹45 lakh and the loan was sanctioned in the eligible window. All three of these — 24(b), 80EEA, and 80C — are available only if you stick with the old tax regime; the new regime removes them entirely for a self-occupied home.
Frequently Asked Questions
How much home loan interest can I deduct under Section 24(b)?
For a self-occupied property, interest deduction is capped at ₹2,00,000 per year, and is only available under the old tax regime. For a let-out (rented) property, there's no cap on the interest deduction itself, but if it creates a loss, only ₹2,00,000 of that loss can be set off against your other income (like salary) each year — the rest carries forward.
Can I claim home loan interest deduction under the new tax regime?
For a self-occupied property, no — Section 115BAC of the new regime disallows this deduction entirely. For a let-out property, you can still deduct interest against the rental income itself, but you cannot create a loss to set off against your salary or other income under the new regime.
What is Section 80EEA and am I eligible?
Section 80EEA gives first-time home buyers an additional ₹1,50,000 interest deduction, over and above the ₹2,00,000 under Section 24(b) — but only if the property's stamp duty value is ₹45 lakh or less, and the loan was sanctioned between 1 April 2019 and 31 March 2022. If your loan was sanctioned outside that window, you won't qualify regardless of the other conditions.
Can I claim both 80C principal repayment and 24(b) interest deduction?
Yes — they're separate sections. Section 80C covers principal repayment (up to ₹1,50,000/year, shared with your other 80C investments like PPF and ELSS), while Section 24(b) covers interest (up to ₹2,00,000/year for self-occupied). Both require the old tax regime.
Does prepaying my home loan reduce my tax benefit?
It can. Since Section 24(b)'s ₹2,00,000 cap is usually already binding in the early years of a large loan (when interest is highest), prepaying principal mainly reduces future interest — which matters most once your annual interest naturally drops below the ₹2,00,000 cap later in the loan tenure. Prepaying early typically doesn't cost you any deduction, since you were already capped.