April 30, 2014 9:50 pm
my tax bracket : 20%
home loan interest rate : 10.95 %
duration : 30 years.
loan amount : 24 Lakhs
how to calculate effective interest rate after taking tax benefits into consideration?
Thanks a lot !!
Dear Chaitanya, 20.6% is the income tax slab you are in. Hence out of 100, 20.6 is saving. So remaining interest is 79.4. That’s how I come to 79.4% .
hi ashalanshu ?
thanks for reply.
how do you arrived at 79.4% figure?
can you please explain the calc. !!! thanks !!!!
Dear Chaitanya, the effective ROI on home loan for you is 79.4% of 10.95%. Hence effective ROI on home loan is 8.6943
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