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Home Loan Tax Benefit Calculator 2026

See your income-tax savings on a home loan under Section 24(b), 80C and 80EEA (old regime).

Quick answer: Under the old regime you can deduct up to ₹2 lakh of home-loan interest (Section 24b) and ₹1.5 lakh of principal (Section 80C) a year — worth up to about ₹1.09 lakh in tax saved at the 30% slab, and more if you also qualify for the ₹1.5 lakh Section 80EEA interest deduction.

Loan & Tax Details

Marginal rate — 5, 10, 15, 20 or 30%.

Self-occupied
First-time / affordable (80EEA)

Total deduction (yr 1)

₹2,99,511

Tax saved (yr 1)

₹89,853

Effective rate after tax

7.29%

Deduction breakdown (year 1)
Interest paid₹4,21,182
Principal paid₹99,511
Section 24(b) — interest (cap ₹2L)₹2,00,000
Section 80C — principal (cap ₹1.5L)₹99,511
Section 80EEA — extra interest (cap ₹1.5L)₹0

These deductions apply under the old tax regime (the new regime does not allow them for self-occupied property). 80C is shared with EPF/PPF/insurance. Figures are for year 1; interest reduces over the loan.

How this calculator works

  1. 1

    Enter your loan amount, rate and tenure

    The calculator derives your first-year interest and principal.

  2. 2

    Set your tax slab

    Enter your marginal rate — 5, 10, 15, 20 or 30%.

  3. 3

    Choose occupancy and 80EEA eligibility

    Toggle self-occupied and whether you qualify for the affordable-housing 80EEA benefit.

  4. 4

    See your deductions and tax saved

    View Section 24(b), 80C and 80EEA deductions and the resulting tax saving.

Frequently Asked Questions

Under the old regime you can deduct up to ₹2 lakh of interest (Section 24b) and ₹1.5 lakh of principal (Section 80C) a year. At the 30% slab that is up to about ₹1.09 lakh in tax saved, and more if you also qualify for the ₹1.5 lakh Section 80EEA interest deduction.

Section 24(b) lets you deduct home-loan interest — up to ₹2 lakh a year for a self-occupied property. For a let-out property there is no cap, but the overall house-property loss you can set off is limited to ₹2 lakh a year.

For a self-occupied property, no — Sections 24(b), 80C and 80EEA are only available under the old regime. For a let-out property, interest deduction under Section 24(b) is still allowed in the new regime.

Section 80EEA gives first-time buyers of eligible affordable housing an additional interest deduction of up to ₹1.5 lakh a year, over and above the ₹2 lakh under Section 24(b), subject to conditions on stamp value and loan sanction dates.

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Reviewed by Ekatra's home-loan experts · Updated May 2026. Calculations are indicative; consult a financial advisor for personalised advice.