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Home Loan Tax Benefit Calculator

Work out home loan tax benefit instantly with clear inputs, formula shown and shareable results.

About Home Loan Tax Benefit Calculator

Home loan repayments attract relief on two counts: interest up to a cap, and principal within the overall investment deduction limit. Multiplying the allowable amounts by your marginal rate gives the cash tax saved and the true after-tax interest cost.

Formula

Tax saving

Saving = [min(interest, cap) + min(principal, limit)] × marginal rate

Worked example

With the default values below, Home Loan Tax Benefit Calculator returns Tax Saved For The Year of $105,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Interest Paid In The Yearminimum 0
240,000
Principal Repaid In The Yearminimum 0
180,000
Marginal Tax Rateaccepts 0–60 %
30 %
Interest Deduction Capminimum 0
200,000

Results

Tax Saved For The Year
$105,000.00
Deductible Interest
$200,000.00
Deductible Principal
$150,000.00
Interest Cost After Tax Relief
$180,000.00

Step by step

  1. 1Values used
  2. 2Tax saving
  3. 3Tax Saved For The Year= 105,000.00
  4. 4Deductible Interest= 200,000.00
  5. 5Deductible Principal= 150,000.00
  6. 6Interest Cost After Tax Relief= 180,000.00

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 or fees or charges 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 caps and rate you enter. Thresholds and rules change and vary by jurisdiction and property use. This is not tax 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 caps and rate you enter. Thresholds and rules change and vary by jurisdiction and property use. This is not tax advice — confirm with a qualified adviser.

Frequently Asked Questions

Why cap the interest deduction?

Statutory limits apply to self-occupied property; let-out property often allows the full interest against rental income instead.

Does the principal deduction compete with other savings?

Yes. It shares one overall limit with provident fund, insurance premiums and similar deductions.

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