Result
Annual tax saved (Year 1)
₹87,238
- Annual EMI₹34,713/month × 12 = ₹416,555
- Year 1 principal component₹79,609
- Year 1 interest component₹336,946
- 80C eligible (max ₹1.5L across all)After 50,000 other 80C₹79,609
- 24(b) eligible (max ₹2L)₹200,000
- Tax saved on 80C at 30% slab₹23,883
- Tax saved on 24(b) at 30% slab₹60,000
- Effective interest rate (after tax benefit)Real cost of loan post tax benefit6.92%
How to use this calculator
- Enter your outstanding home loan, interest rate, remaining tenure.
- Choose your marginal tax slab.
- Enter other 80C investments to see how much room remains for home loan principal.
- Read tax saved in Year 1 + effective post-tax interest rate.
About this tool
Owning a home in India gives you TWO tax benefits: Section 80C (principal repayment, up to ₹1.5L/year combined with other 80C) and Section 24(b) (interest paid, up to ₹2L/year for self-occupied property, unlimited for let-out). BOTH are available only under the OLD tax regime — new regime does not allow either. First-time home buyers can additionally claim Section 80EE / 80EEA for extra interest deduction. This calculator shows YEAR 1 tax savings — in later years principal component grows and interest shrinks, so tax profile changes gradually.
Frequently asked
Section 80C: principal repayment up to ₹1.5L/year (combined with all other 80C). Section 24(b): interest up to ₹2L/year for self-occupied home (unlimited for let-out property). Section 80EE/EEA: additional ₹50K interest deduction for first-time buyers meeting criteria. ALL only under old regime.
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