Work out interest subsidy benefit instantly with clear inputs, formula shown and shareable results.
An interest subsidy is worth the difference between the market EMI and the subsidised EMI over the eligible period. Discounting that saving stream at the market rate gives its value in today's money, which is the right figure to compare against alternatives.
Subsidy value
PV = Σ [PMT(P, r_market, n) - PMT(P, r_subsidy, n)] × (1+r_market)^-t
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
Because savings arrive over decades. The present value shows what the subsidy is worth as a lump sum today.
Treatment varies — some schemes credit it against principal, others pay it as a grant with its own tax treatment.