Home Loan Tax Shield Calculator
See exactly how much tax your home loan saves — Old Regime vs New Regime, year by year. Most home loan marketing overstates the tax benefit; this tool gives you the honest rupee number.
Your Home Loan
EPF + ELSS + SSY + PPF already in use
Your Tax Shield
Cumulative Tax Saving — Old vs New
How your total tax shield grows year-by-year under each regime
What This Means for You
Under the New Regime a self-occupied home loan delivers zero tax benefit — no Section 24(b), no 80C on principal, no 80EE/80EEA. If you are banking on tax savings, Old Regime is the only path.
Only ₹₹1.00 L of 80C headroom is left after your other investments. Home-loan principal above this amount does not reduce your tax.
Under Old Regime your ₹65,087 EMI feels like roughly ₹57,985/month after tax shield. Under New Regime there is no such cushion — the sticker EMI is the real outgo.
Old Regime saves ₹17.04 L more than New Regime across the loan tenure. Factor this delta while choosing your regime each year.
Note from your CFP
Under the New Regime — which is the default from FY 2024-25 — self-occupied home loans provide no tax benefit. Many buyers still cite "tax benefits" as a reason to buy. This calculator shows the actual rupee delta. Often under the New Regime the home loan is a pure financial liability, not a tax shelter. Buy a home because you want to live in it — not for the tax break.
Confused between Old Regime and New Regime for your home loan?
Share your details — your Relationship Manager will walk you through regime selection, 80C optimisation, and whether this home loan actually fits your financial plan.
Calculator results are for illustration purposes only. Actual returns may vary based on market conditions, fund performance, and other factors. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance does not guarantee future returns. Tax figures are illustrative and based on the FY 2026-27 regime structure; actual benefits depend on your full income profile, property value, loan sanction date and eligibility under Sections 24(b), 80C, 80EE and 80EEA. Always consult a qualified tax advisor before making a home-purchase decision.
The real after-tax cost of your home loan
A home loan is cheaper than its headline rate suggests — but only if you use the Old Regime. Interest qualifies for a deduction under Section 24(b) (up to ₹2 lakh a year on a self-occupied home), and the principal repayment counts within your ₹1.5 lakh 80C limit. Together these lower the effective, after-tax interest rate you actually bear.
This calculator estimates those deductions at your tax slab and shows the effective post-tax cost of your loan. One caution: the tax benefit is a reason a loan is cheaper than it looks, not a reason to keep a loan you could comfortably repay. Once the outstanding is small, the interest (and therefore the deduction) shrinks anyway, so "keeping the loan for tax" is often a weak argument.
How this calculator works
- 1Enter your loan amount, interest rate, tenure and income-tax slab.
- 2The calculator estimates the annual 24(b) interest deduction and the 80C principal component.
- 3It shows the tax saved and the effective after-tax interest rate you pay.
Frequently asked questions
How much tax benefit do I get on a home loan?
Under the Old Regime, interest is deductible under Section 24(b) up to ₹2 lakh a year for a self-occupied property, and the principal repayment counts within the ₹1.5 lakh 80C limit. First-time buyers may get additional benefits in some years. These deductions lower your effective interest cost — this calculator quantifies it.
Are home-loan tax benefits available in the New Regime?
Largely no. The New Regime removes most deductions, including 80C principal and, for a self-occupied home, the 24(b) interest deduction. If you have chosen the New Regime, the loan’s effective cost is close to its headline rate. This calculator reflects the regime you select.
Should I prepay my home loan or keep it for the tax benefit?
Usually the tax benefit alone does not justify keeping a loan. As the balance falls, so does the interest and the deduction. Compare the after-tax loan rate against what your money could earn if invested instead, and weigh the peace of mind of being debt-free. Prepaying early in the loan saves the most interest.
Related tools
Illustrative and for education only; tax rules change and depend on your situation. Consult a Chartered Accountant.
Related Calculators
Explore more tools that pair well with this one
Income Tax Calculator
Compare Old vs New tax regime with FY 2026-27 slabs and HRA exemption.
Capital Gains Tax Calculator
Calculate STCG/LTCG tax for equity, debt, property, and gold post-Budget 2024.
Tax Saving Calculator
Plan deductions under 80C, 80D, 80CCD(1B), and 24(b) to minimize taxes.
PPF vs ELSS vs NPS (80C)
The honest Section 80C showdown. PPF (7.1%) vs ELSS (12%) vs NPS (10%) over 15-40 years — post-tax outcomes + Smart Mix.
SIP Future Value Calculator
Calculate how much your monthly SIP will grow over time with the power of compounding.
Retirement SIP Planner
Calculate the monthly SIP needed for your retirement corpus.