Mortgage Tax Deduction Calculator

One of the nice things about a mortgage is the interest charges are deductible from your federal income taxes.  If you want to know just how much you can deduct, then try our mortgage tax deduction calculator.  It provides you with the total interest charges / tax deductions as well as the tax benefit over the life of a mortgage.  The calculator also provides an amortization table, which provides the tax deduction by year.

  Mortgage Tax Deduction    
  Total Home Loan Amount ($)  
  Annual Interest Rate (%)  
  Term of the Loan (Years)  
  Federal Tax Rate (%)  
  Calculator Results:  
  Monthly Payment ($ / Month)  
  Total Payments ($)  
  Total Interest Paid / Deduction ($)  
  Total Tax Benefit ($)  
    Principal Tax
  Year 1 ($)  
  Year 2 ($)  
  Year 3 ($)  
  Year 4 ($)  
  Year 5 ($)  
  Year 6 ($)  
  Year 7 ($)  
  Year 8 ($)  
  Year 9 ($)  
  Year 10 ($)  
  Year 11 ($)  
  Year 12 ($)  
  Year 13 ($)  
  Year 14 ($)  
  Year 15 ($)  
  Year 16 ($)  
  Year 17 ($)  
  Year 18 ($)  
  Year 19 ($)  
  Year 20 ($)  
  Year 21 ($)  
  Year 22 ($)  
  Year 23 ($)  
  Year 24 ($)  
  Year 25 ($)  
  Year 26 ($)  
  Year 27 ($)  
  Year 28 ($)  
  Year 29 ($)  
  Year 30 ($)  

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Total Home Loan Amount ($)

The total amount of money borrowed for this mortgage, also referred to as the principal of the loan.

Annual Interest Rate (%)

This is the annual interest rate on the mortgage.  This is not the APR, which takes into account other costs associated with the mortgage.

Term of the Loan (Years)

The term of the loan is the number of years over which the mortgage will be repaid.  The most common mortgage terms are 15, 20, and 30 years.

Federal Tax Rate (%)

This is your incremental federal tax rate, sometimes referred to as your tax bracket. This value will be used to compute the total tax benefit derived from the mortgage.

Monthly Payment ($ / Month)

This is the monthly mortgage payment for the loan itself.  This does not include mortgage insurance or property taxes, which are sometimes included with your mortgage payment.

Total Payments ($)

The total amount paid to the bank or lending institution over the life of the mortgage.  The value is derived by multiplying the monthly payment times the number of months over which the mortgage is outstanding.

Total Interest Paid / Deduction ($)

The total interest paid on the loan is the difference between the total payments and the total home loan amount (the cost of borrowing the money).  It is these interest charges that you will be allowed to deduct from your federal income taxes.

Total Tax Benefit ($)

The total tax benefit is determined by multiplying the total interest paid times your incremental federal tax rate.  Since you are allowed to deduct interest charges from your federal income taxes, this value will be the net savings, or benefit, you gain from this deduction.  The value computed is the total benefit over the life of the mortgage.

Tax Benefit Table

The tax benefit table provides you with an annual look at the potential tax deductions you'll have each year.  This calculator also provides you with an amortization table, showing the decrease in the mortgage's principal over time.

Mortgage Tax Deduction Calculator

Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor.  The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.