How to use this calculator
- Enter or choose tax regime.
- Enter or choose loan for.
- Enter or choose interest paid in the year.
- Enter or choose principal repaid in the year.
- Enter or choose other 80C investments (PF, ELSS, PPF…).
- The total deduction updates as you type. Use Copy result or Share to keep it.
Method
Old regime: Interest deduction = min(Interest, ₹2,00,000 or ₹30,000); Principal deduction = min(Principal, ₹1,50,000 − other 80C); Tax saved ≈ Total × Slab rate × 1.04. New regime: nil for a self-occupied home
- Slab rate
- the rate on your top slice of income under the old regime
Worked example
- Interest ₹2,50,000 is capped at ₹2,00,000.
- 80C room = 1,50,000 − 80,000 = ₹70,000, so ₹70,000 of the ₹1,00,000 principal counts.
- Tax saved ≈ 2,70,000 × 30% × 1.04 = ₹84,240.
With ₹2.5 lakh interest and ₹1 lakh principal, the old regime gives ₹2.7 lakh of deductions, saving about ₹84,240 at the 30% slab.
What the result means
The saving only exists under the old regime; check with the Old vs New Tax Regime Calculator whether the old regime still costs less overall once these deductions are included.
Assumptions and limits
- FY 2025-26 (AY 2026-27) limits published by the Income Tax Department: interest on a self-occupied home up to ₹2,00,000 for loans for purchase or construction taken on or after 1 April 1999, ₹30,000 for repairs or older loans; combined 80C limit ₹1,50,000, which includes payments for buying or building a house.
- Under the new regime, interest on a self-occupied home and 80C deductions are not allowed (Income Tax Department regime FAQs).
- The tax saved assumes the whole deduction falls in your top slab; surcharge is ignored.
- Let-out property, pre-construction interest, joint loans and sections 80EE / 80EEA are not covered.
- Rules for tax year 2026-27 onwards under the Income-tax Act, 2025 are not covered.
- Jurisdiction
- India
- Rates effective from
- 1 April 2025
- Authority
- Income Tax Department (CBDT), Finance Act 2025, for FY 2025-26 / AY 2026-27
- Rates last checked
- 29 October 2026
Questions
Can I claim home-loan interest in the new regime?
Not for a self-occupied house. The Income Tax Department lists interest on borrowed capital for self-occupied property among deductions not allowed in the new regime.
Do principal and interest share one limit?
No. Interest is deducted under section 24(b) up to ₹2 lakh; principal falls within the separate ₹1.5 lakh 80C limit, shared with PF, PPF, ELSS and others.
Sources
Please note: Tax rules change and depend on how a supply is classified. Use this as a guide and confirm with the official notifications or a tax professional.