Home Loan Tax Benefit Calculator
Estimate annual savings from Section 24(b) interest deduction and Section 80C principal deduction.
Tax Inputs
Tax Benefit Summary
Estimated Annual Tax Saved
₹87,000.00
Approximation at marginal tax rate 30%
Deductible Interest
₹2.00 L
Section 24(b)
Deductible Principal
₹90,000.00
Section 80C availability
Total Deduction
₹2.90 L
Combined eligible deduction
Annual Interest Paid
₹2.40 L
As entered
Effective Interest Cost
₹1.53 L
After estimated tax benefit
Notes
- Section 24(b) deduction capped at Rs 2,00,000 per year.
- Education cess and surcharge are not included in this estimate.
How to use this calculator
- 1Enter annual interest paid from your lender statement.
- 2Enter annual principal repaid in the financial year.
- 3Add how much Section 80C is already used via other investments.
- 4Choose your tax regime and gross annual income for slab approximation.
- 5Review deductible amount, estimated tax saved, and effective interest cost.
Interpreting effective borrowing cost
Tax deductions reduce your net cash outflow and therefore effective borrowing cost. This is why two borrowers with same interest rate can have different real costs.
If you are in old regime and still have 80C room left, principal repayment can improve tax efficiency further.
For filing-level precision, always validate this estimate with lender certificate and your CA before final tax submission.
Frequently Asked Questions
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