Your home loan
Outstanding loan amount—
Remaining tenure—
Loan interest rate—
Floating rate loan? Consider adding 25–50 bps above your current rate to buffer potential repo rate increases.
Your strategy
Lump sum available—
Expected investment return—
Investment type
Equity LTCG: 12.5% on gains above ₹1.25L at redemption (Budget 2024). Invest gain shown is post-tax.
Tax profile
Who is borrowing?
For a working couple who are co-owners and co-borrowers, each can claim up to ₹2L (Sec 24b) + ₹1.5L (80C) independently — doubling the household tax benefit.
Tax regime
New regime: Sec 24(b) and 80C deductions are unavailable. Effective loan cost equals the full interest rate.
Your marginal tax slab (old regime)
Section 80C headroom
—
₹1.5L assumes no other 80C investments. Salaried employees with EPF + LIC typically have little headroom — choose conservatively.
Results
Total interest you'd save
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—
Investment gain
—
—
Effective loan cost
—
—
You come out ahead by
—
—
Sec 24(b) saving / yr
—
Interest deduction
Sec 80C saving / yr
—
Principal deduction
Net invest gain (post-tax)
Net interest saved (tax-adjusted)
Year-by-year breakdown
Show ▾
| Year | Orig. bal. | Prepay bal. | Int. saved | Invest value | Net invest gain |
|---|
Why "Total interest you'd save" differs from "Ahead by": If you invest and keep the loan, you retain annual Sec 24(b) and 80C deductions — an extra benefit that doesn't exist in the prepay path. The "Ahead by" figure is fully tax-adjusted on both sides: investment gain is shown post-investment-tax; interest savings are reduced by the deductions you'd forgo by prepaying.
Floating rate loans: Most Indian home loans are floating rate (EBLR / MCLR-linked). Consider adding 25–50 bps to buffer potential repo rate increases over your tenure.
Investment tax: Equity LTCG — 12.5% on gains above ₹1.25L at redemption (Budget 2024, ₹1L exemption raised). Debt MF and FD — taxed at your marginal slab rate; post-tax compounding applied. Investment tax uses the primary borrower's slab for joint scenarios.
Joint borrowers — key conditions: Both must be co-owners AND co-borrowers. Deductions are in proportion to ownership share — this calculator assumes 50-50. Both must independently contribute to EMI repayment.
Sec 24(b): ₹2L per borrower/year for self-occupied property (up to ₹4L combined for joint). No ceiling for let-out properties; loss set-off capped at ₹2L per borrower/year.
Sec 80C: ₹1.5L per borrower (up to ₹3L combined), shared with EPF, PPF, ELSS, LIC, etc. If property is sold within 5 years, deductions claimed on principal are reversed and added back to income.
Old regime slabs shown: Marginal rates only (0%, 5%, 20%, 30%). New regime slab picker is hidden as 24(b) and 80C are unavailable in the new regime.
Investment returns are pre-tax estimates and not guaranteed. This tool is for informational purposes only and does not constitute financial advice.
Floating rate loans: Most Indian home loans are floating rate (EBLR / MCLR-linked). Consider adding 25–50 bps to buffer potential repo rate increases over your tenure.
Investment tax: Equity LTCG — 12.5% on gains above ₹1.25L at redemption (Budget 2024, ₹1L exemption raised). Debt MF and FD — taxed at your marginal slab rate; post-tax compounding applied. Investment tax uses the primary borrower's slab for joint scenarios.
Joint borrowers — key conditions: Both must be co-owners AND co-borrowers. Deductions are in proportion to ownership share — this calculator assumes 50-50. Both must independently contribute to EMI repayment.
Sec 24(b): ₹2L per borrower/year for self-occupied property (up to ₹4L combined for joint). No ceiling for let-out properties; loss set-off capped at ₹2L per borrower/year.
Sec 80C: ₹1.5L per borrower (up to ₹3L combined), shared with EPF, PPF, ELSS, LIC, etc. If property is sold within 5 years, deductions claimed on principal are reversed and added back to income.
Old regime slabs shown: Marginal rates only (0%, 5%, 20%, 30%). New regime slab picker is hidden as 24(b) and 80C are unavailable in the new regime.
Investment returns are pre-tax estimates and not guaranteed. This tool is for informational purposes only and does not constitute financial advice.
A LoanSach tool · informational use only