Mortgage Tax Savings Calculator
Generally, the interest portion of your monthly mortgage payment is tax deductible. Mortgage discount points, optional extras that you pay to reduce your mortgage rate when you set up a home loan, are also generally tax deductible. However, points paid to agencies or brokers are not deductible. You can consult your tax advisor to determine what your specific tax deductibility will be for your personal financial situation, but in the meantime use the calculator below, which will show you how much money you can save by deducting your interest payments from your taxable income.
Loan information:Press spacebar to hide inputs |
Closing Costs: $4,800.00Press spacebar to show inputs |
APR after taxes 3.289%
|
Total Payments $364,814
|
Mortgage Term 30 years
|
Why use the Mortgage Tax Savings Calculator?
The mortgage tax savings calculator will calculate what your potential tax savings are based on the mortgage rate you will pay on your home loan and the number of points that you pay. It also takes into account the Federal and State tax rates that you pay. If you click Federal tax rate, a useful popup will appear, displaying a table of the current Federal tax rates depending on your income and circumstances.
The calculator is also useful as it enables you to take into account your closing costs, such as origination fee (the percentage of your loan which is paid to the lender up front alongside the deposit) and mortgage points. This in turn gives you a calculation of your potential APR, both before and after tax. Once all of your information is in the calculator, you can click "Calculate" to see a brief analysis of your first year tax savings, or click "View Report" for a detailed breakdown including your average savings over the term of the loan.
How to use the Mortgage Tax Savings Calculator
Confused? Here's what you do:
- Enter the amount you intend to borrow by using the sliders or typing into the white box
- Choose your mortgage term from the drop-down menu
- Specify the interest rate you will be paying on your mortgage
- Add your Federal and State tax rates – click on where it says Federal tax rate if you aren’t sure what yours is
- Click the [ ] button to expand the Closing Costs section and add the relevant details
- Click View Report.
Who is this Calculator for?
This calculator is most useful if you:
- Want to save yourself money by deducting your interest payments from your taxable income
- Are filing your tax return and want to know how much you will be saving
- Need to know your APR, before and after tax
I’m pleased with the result; what next?
If you're satisfied with the calculator’s result , the next step is to get in touch with potential lenders and begin the process of obtaining a mortgage loan. But rather than do that yourself, why not let us do the hard part for you? Simply click "Get FREE Quote," answer a few brief questions and our trusted lending partners will evaluate your financial profile and contact you directly with their best offers. It couldn't be easier; the lenders come to you, so you don’t need to go to them!
Is it worth paying for mortgage discount points?
This depends on a number of factors, particularly the amount you are borrowing, the interest rate, and the term of the loan. Take a look at our Mortgage Points Calculator – this tool will help you to understand clearly whether or not buying mortgage points is the right decision, depending on your own circumstances. There’s not one solution to suit everyone, so use this free calculator to ensure you are making the best decision for yourself.
Other Mortgage and Financial Calculators
In addition to the standard mortgage calculator, this page lets you access more than 100 other financial calculators covering a broad variety of situations. Choose from calculators covering various aspects of mortgages, auto loans, investments, student loans, taxes, retirement planning and more.
- Adjustable Rate Mortgage Calculator
- Interest Only ARM Calculator Overview
- How much can I borrow?
- Mortgage comparison: 15 years vs 30 years
- Balloon Loan Calculator
- ARM vs. Fixed-Rate Mortgage Calculator
- APR Calculator for Adjustable Rate Mortgages
- Bi-weekly Payment Calculator
- Blended Rate Mortgage Calculator
- Fixed Rate Mortgage vs. Interest Only ARM calculator
- Mortgage Tax Savings Calculator
- Rent vs. Buy Calculator
- Mortgage Payoff Calculator
- Mortgage Required Income Calculator
- Interest-Only Mortgage Calculator
- Mortgage Qualifying Calculator
- Mortgage Calculator Simple (PITI) - Mortgage Calculation
- Mortgage APR Calculator
- Bi-Weekly Payment Calculator For an Existing Mortgage
- Enhanced Loan Calculator
- Existing Loan Calculator
- Mortgage Debt Consolidation Calculator
- Mortgage Points Break-Even Calculator
- Refinance Break-Even Calculator
- Refinance Calculator
- Auto Rebate vs. Low Interest Financing
- Bi-weekly Payments for an Auto Loan Calculator
- Dealer Financing vs. Credit Union Financing Calculator
- Auto Lease vs. Auto Buy Calculator
- Home Equity vs. Auto Loan Calculator
- Auto Loan Calculator
- Bi-weekly Payments for an Auto Loan Calculator
- Auto Loan Payoff Calculator
- Retirement Income Calculator
- 401(k) Net Unrealized Appreciation Calculator
- 401(k) Savings Calculator
- 403(b) Savings Calculator
- 457 Savings Calculator
- 72(t) Distribution Impact Calculator
- Beneficiary Required Minimum Distributions
- Pension Plan Retirement Options
- Retirement Contribution Effects Calculator
- Retirement Planner
- Roth vs. Traditional IRA Calculator
- 72(t) Distribution Options Calculator
- Social Security Benefits Calculator