Tax saved from home-loan interest and principal this year, in the old and new regimes.
Financial year
₹
% p.a.
years
of 20
Interest is highest in the early years.
The home is
₹
₹
PF, PPF, ELSS, life insurance… Principal repayment shares the same ₹1.5 lakh limit.
Deductions this yearLoan year 1 of 20 · lived in
Tax saved this year (old regime)₹93,45093.5 thousand
Interest paid this year₹4,21,1824.21 lakh
Principal repaid this year₹99,51199.5 thousand
Interest ₹4,21,182 81%Principal ₹99,511 19%
Old regime
₹93,450tax saved by the loan
Income reduced by
₹2,99,511
Tax without the loan
₹3,97,800
Tax with the loan
₹3,04,350
New regime
✓ Lower tax₹0tax saved by the loan
Income reduced by
₹0
Tax without the loan
₹1,92,400
Tax with the loan
₹1,92,400
Even with this saving, the new regime still costs ₹1,11,950 less overall this year.
EMI ₹43,391 a month. See the full schedule in the EMI calculator, or check the effect of a part-payment.
Home loan tax benefits in FY 2026-27
Home you live in, old regime: interest up to ₹2 lakh a year is deductible, and principal repayment counts towards the ₹1.5 lakh 80C limit (together with PF, PPF, ELSS and insurance).
Home you live in, new regime: no deduction for interest or principal.
Rented-out home: after a 30% standard deduction on rent (less municipal tax), all interest is deductible from the rent in both regimes. If that makes a loss, the old regime lets you set up to ₹2 lakh against your salary; the new regime doesn't.
Joint borrowers who co-own the home can each claim their own share. Interest paid before the home is complete is claimed in five equal parts from the year it's finished. Compare regimes fully with the tax regime calculator.
An estimate, not tax advice. It treats one loan year as the financial year and assumes you are the sole borrower. Calculated in your browser; nothing you enter is sent anywhere.
