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The Government of India has rolled out several provisions to help prospective home buyers gain various advantages. One of the most prominent features of a home loan is the tax benefits it offers.


For home buyers availing home loans, the government allows the deduction of a specific portion of the interest and the principal amount from your net taxable income. You may be wondering, “How much tax I can save on a home loan?”. Know that calculating this amount is not difficult.


All you need here is a home loan tax benefit calculator. While tax benefits increase your loan affordability, a housing loan tax benefit calculator helps you estimate the exact tax exemption.


You can use the home loan tax saving calculator to get an estimate of the amount of tax you can save by claiming income tax deductions against your home loan EMIs. Read on to learn more benefits of using a house loan tax exemption calculator.

Housing Loan Tax Saving Calculator Details

You can use the home loan income tax benefit calculator on Bajaj Markets to calculate the total tax benefit you can get on your home loan. The calculator is user-friendly and has an easy-to-use interface. 


All you have to do is enter the following details in the designated fields of the home loan tax saving calculator:

  • Loan amount
  • Rate of interest
  • Loan tenure
  • Loan start date


The home loan tax benefit calculator will give you an estimate of the income tax you can save on the principal and interest amounts of your home loan. To help you understand the link between a home loan calculator and tax benefits, consider the following example. 


Assume your annual income is ₹12 Lakhs, and you have availed a home loan of ₹50 Lakhs for a tenure of 20 years. 


Your tax savings on the house loan can be calculated using a home loan tax benefit calculator as per the following table:

Principal Home Loan Amount


Annual Income


Home Loan tenure

20 Years

Home Loan Interest Rate

7% per annum

Other 80(C) Investments


Tax Before Home Loan


Tax After Home Loan


Tax Savings Because of Home Loan


While you may calculate manually, using a home loan tax benefit calculator can fetch accurate results instantly. To understand the implications of tax benefits, a home loan calculator is your best bet, as it computes results accurately and instantly.

Benefits of Using a Home Loan Tax Exemption Calculator

Using a home loan income tax benefit calculator can provide you with several advantages. Below are some of them: 

  • You can compute your savings utilising the Section 80C deduction
  • Section 80C allows you to save tax by selecting qualifying assets and expenses
  • Depending on your investing goals and level of risk tolerance, you can decide which Section 80C investment to make
  • You have an idea of how much tax you have saved, and you may invest in other assets
  • As this is a digital tool, you can get error-free results instantly
  • The tool calculates your tax benefits after assessing all essential home loan parameters
  • The calculator computes the final payable amount and tax deductions


Now that you know how to use a home loan tax benefit calculator and its benefits, be sure to use one when you get a home loan. This not only helps you stay on top of your finances but also helps plan investments appropriately.


Furthermore, availing a home loan at Bajaj Markets not only allows you to access a calculator to assess your home loan tax benefits but also offers several other benefits. You can even plan your finances well in advance using the home loan EMI calculator.


Thankfully, you can use this home loan tax benefit calculator as needed to compare some of the best loan offers providing flexible home loan tenure options and affordable interest rates.


How can you calculate tax exemption for home loans?

You can calculate the tax exemption based on your income tax slab and the principal and interest portions of your house loan EMIs. Using the home loan tax benefit calculator can make the process simpler and faster.

How to calculate tax savings on a home loan?

You can simply use the home loan tax saving calculator on Bajaj Markets to estimate the tax amount you can save by availing of the benefits of the various deductions under the Income Tax Act 1961.

Can you save tax with a home loan?

Yes, you can enjoy tax benefits on a home loan. As per Section 80C, you are eligible for a tax deduction for a maximum amount of up to ₹1.5 Lakhs on specific expenses and investments. Use a home loan tax benefits calculator to understand the exact amount.

How does a home loan tax benefit calculator work?

A home loan tax saving calculator computes the taxes you can save as per Section 80C deductions. Key in the required parameters and check the tax amount you can save. Based on this, you can plan your other investments if required.

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