Home Loan EMI Calculator
Monthly EMI, interest paid, principal repaid, plus the tax-deductible portion under Section 71 (interest, ₹2L cap) and Section 123 (principal, ₹1.5L cap).
- Year 1 interest paid₹4,21,182
- Year 1 principal paid₹99,511
- Year 1 §71 deduction (interest, ₹2L cap)₹2,00,000
- Year 1 §123 deduction (principal, ₹1.5L cap)₹99,511
- Total interest over tenure₹54,13,879
How home loan tax benefits stack
Under the old tax regime, your home loan EMI gives you two distinct tax breaks:
- Section 71 (formerly 24(b)) - interest paid is deductible up to ₹2,00,000 per year for a self-occupied property. For a let-out property, there is no upper limit (but the set-off against other heads is capped at ₹2 lakh; balance carried forward).
- Section 123 (formerly 80C) - principal repayment is deductible up to ₹1,50,000 per year. This is part of the overall ₹1.5 lakh 80C cap, not in addition to it.
What about the new tax regime?
Under the new tax regime (Section 202, default from FY 2026-27), Section 71 (24(b)) is not available for self-occupied property. For let-out property, interest is still set-off against rental income. Section 123 is also unavailable in the new regime.
FAQs
How is home loan EMI calculated?▾
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual / 12), and n is the tenure in months.
How much of my EMI is tax-deductible?▾
The interest component is deductible under Section 71 (formerly Section 24(b)) up to ₹2,00,000 per year for self-occupied property. The principal repayment is deductible under Section 123 (formerly 80C), up to ₹1.5 lakh combined cap with other 80C investments.
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