What is an HRA Calculator?
An HRA calculator works out how much of the house rent allowance in your salary is exempt from income tax under the old regime, using the lowest of three limits set by the tax rules.
HRA Calculator applies the exemption rule for salaried employees who pay rent: the exempt amount is the lowest of actual HRA, rent minus 10% of salary, and 50% (metro) or 40% (other cities) of salary. The exemption is available only under the old tax regime.
How does the HRA Calculator work?
The exempt part of HRA is the lowest of three amounts. The rest of the HRA is added to taxable salary.
Exempt HRA = least of
1. Actual HRA received
2. Rent paid − 10% of (basic + DA)
3. 50% of (basic + DA)Worked example using the starting values on this page:
- Basic salary (monthly)
- ₹50,000
- Dearness allowance (monthly)
- ₹0
- HRA received (monthly)
- ₹20,000
- Rent paid (monthly)
- ₹25,000
- City
- Metro (50%)
- HRA exemption (yearly)
- ₹2,40,000
- Taxable HRA (yearly)
- ₹0
- HRA exemption (monthly)
- ₹20,000
- HRA received (yearly)
- ₹2,40,000
How to use the HRA Calculator
- Enter the basic salary (monthly) (anywhere from ₹1,000 to ₹20,00,000). Type it in the box or drag the slider.
- Enter the dearness allowance (monthly) (anywhere from ₹0 to ₹10,00,000). Type it in the box or drag the slider.
- Enter the hra received (monthly) (anywhere from ₹0 to ₹10,00,000). Type it in the box or drag the slider.
- Enter the rent paid (monthly) (anywhere from ₹0 to ₹10,00,000). Type it in the box or drag the slider.
- Choose city: Metro (50%) or Other (40%).
- Read the hra exemption (yearly) at the top of the results, then check the breakdown below it.
- Change one input at a time to compare scenarios, and note how much each change moves the result.
Benefits of using the HRA Calculator
- Applies the current rules step by step, so you can see how the final figure is reached.
- Lets you test different amounts and options before you file, sign an offer or raise an invoice.
- Shows the breakdown, not just a single number, which makes it easier to check payslips, invoices or Form 16.
- Free, instant and private: nothing you enter is stored.
Mistakes to avoid with the HRA Calculator
The common mistake is claiming HRA under the new regime, where it is not allowed.
The lowest of the three amounts decides the exemption; the table shows which one is limiting you.
Helpful checks before using the result
These checks make a hra more useful in practice.
- Start with a realistic base case rather than the first value that fits the range slider.
- Change one major assumption at a time so the effect stays easy to interpret.
- Use the result to compare scenarios, not as a final provider quote or guaranteed outcome.
- Verify rates, rules, and product terms separately before acting on the estimate.
HRA exemption conditions
The exemption has a few conditions beyond the formula.
- You must actually pay rent for the home you live in and not own a house in that city that you live in.
- Only basic salary and dearness allowance (when it counts for retirement benefits) are used as “salary” in the rule.
- The landlord’s PAN is generally needed when rent is above ₹1 lakh a year.
- Under the new tax regime, HRA is fully taxable.
Ways to read the result
The lowest of the three amounts decides the exemption.
Rent is the limit
If rent minus 10% of salary is the lowest figure, paying higher rent raises the exemption, up to the other two limits.
HRA is the limit
If the HRA you receive is lowest, the whole HRA is exempt.
Salary share is the limit
If 50% or 40% of salary is lowest, extra rent or HRA does not increase the exemption.
HRA Calculator FAQs
How is HRA exemption calculated?
Exempt HRA is the lowest of: actual HRA received; rent paid minus 10% of basic + DA; and 50% of basic + DA in a metro or 40% elsewhere.
What is 50% or 40% of salary in HRA?
It is one of the three limits: 50% of basic + DA if you live in a metro city and 40% in other cities.
Can I claim HRA under the new tax regime?
No. The HRA exemption is available only if you choose the old tax regime.
How much HRA can I claim with ₹50,000 basic and ₹25,000 rent?
With ₹20,000 HRA in a metro: actual HRA ₹20,000; rent − 10% of basic = ₹20,000; 50% of basic = ₹25,000. The exemption is ₹20,000 a month, so the whole HRA is exempt.
