Work out home loan tax benefit instantly with clear inputs, formula shown and shareable results.
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.
Tax saving
Saving = [min(interest, cap) + min(principal, limit)] × marginal rate
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.
Statutory limits apply to self-occupied property; let-out property often allows the full interest against rental income instead.
Yes. It shares one overall limit with provident fund, insurance premiums and similar deductions.