Skip to content
ENExplore Calculators

Home Loan Interest Deduction Calculator

Work out home loan interest deduction instantly with clear inputs, formula shown and shareable results.

About Home Loan Interest Deduction Calculator

A self-occupied property allows interest up to a statutory cap; a let-out property sets interest against rental income first and any resulting loss is deductible up to the same annual cap. Excess loss is carried forward against future property income.

Formula

Property interest relief

Self-occupied: min(interest, cap). Let out: min(interest - rent, cap), remainder carried forward

Worked example

With the default values below, Home Loan Interest Deduction Calculator returns Interest Deduction Allowed of $200,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Interest Paid In The Yearminimum 0
320,000
Property Useone of Self-occupied, Let out
Self-occupied
Net Rental Incomeminimum 0
240,000
Marginal Tax Rateaccepts 0–60 %
30 %

Results

Interest Deduction Allowed
$200,000.00
Tax Saved
$60,000.00
Loss Carried Forward
$120,000.00
Interest Cost After Relief
$260,000.00

Step by step

  1. 1Values used
  2. 2Property interest relief
  3. 3Interest Deduction Allowed= 200,000.00
  4. 4Tax Saved= 60,000.00
  5. 5Loss Carried Forward= 120,000.00
  6. 6Interest Cost After Relief= 260,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.

Frequently Asked Questions

Why is let-out treatment more generous?

Because interest is set against the rent it produces first, so the full economic cost enters the computation.

How long can the loss be carried forward?

Commonly eight years, and only against income from house property.

Related Calculators

Home Loan Interest Deduction Calculator | Calcrivo