Mortgage Calculator with Taxes and Insurance

Calculate your complete monthly mortgage payment including principal, interest, property taxes, homeowners insurance, PMI, and HOA fees. Get detailed insights into your home financing costs.

Tips:

Down payment below 20% usually requires PMI.
Property taxes vary significantly by location.
HOA fees apply typically to condos and some planned communities.

Enter mortgage details to see your payment breakdown

About the Mortgage Tax Deduction Calculator

Owning a home can come with certain tax advantages, primarily the ability to deduct mortgage interest and property taxes paid during the year. This calculator helps estimate the potential tax savings you might realize from these deductions based on your mortgage details, property taxes, and income tax situation.

Key Concepts

Mortgage Interest Deduction: Generally, you can deduct the interest paid on home acquisition debt up to $750,000 ($375,000 if married filing separately). Interest on home equity debt is usually only deductible if the loan proceeds were used to buy, build, or substantially improve your home.
Property Tax Deduction (SALT): State and Local Taxes (SALT), including property taxes, are deductible, but the total SALT deduction is capped at $10,000 per household per year ($5,000 if married filing separately).
Standard Deduction vs. Itemized Deductions: You benefit from these deductions only if your total itemized deductions (including mortgage interest, SALT, charitable contributions, etc.) exceed your standard deduction amount for your filing status.

This calculator provides an estimate and simplifies some complex tax rules. The actual tax benefit depends on your complete tax profile and current tax laws.

How to Use This Calculator

Enter the following details to estimate your potential tax savings:

1. Mortgage Information

Total Mortgage Amount: The original principal amount of your mortgage loan.
Annual Interest Rate (%): The yearly interest rate on your mortgage.
Loan Term (Years): The total duration of your mortgage (e.g., 15, 30 years).
Payments Made This Year: How many monthly payments you've made in the tax year you're calculating for (usually 12 for a full year).

2. Property Tax Information

Annual Property Tax Paid: The total amount of property tax you paid during the tax year.

3. Tax Filing Information

Filing Status: Select your tax filing status (e.g., Single, Married Filing Jointly). This determines your standard deduction amount.
Marginal Tax Rate (%): Your highest federal income tax bracket rate. This is used to estimate the value of the deductions.
Other Itemized Deductions: Enter the total of any other itemized deductions you might have (e.g., state income/sales tax (up to the SALT cap), charitable donations, medical expenses exceeding thresholds). This helps determine if you'll exceed the standard deduction.

The calculator will estimate the total deductible interest and property tax (respecting limits), determine if itemizing provides a benefit over the standard deduction, and calculate the approximate tax savings based on your marginal rate.

Calculation Details

Here's how the estimated savings are calculated:

Calculate Total Interest Paid: Determines the interest portion of your mortgage payments for the specified number of payments made during the year using a standard amortization schedule.
Determine Deductible Interest: Caps the interest based on the $750,000/$375,000 acquisition debt limit if the total mortgage amount exceeds this.
Determine Deductible Property Tax: Caps the property tax amount at the $10,000/$5,000 SALT limit.
Calculate Total Potential Itemized Deductions: Sums the deductible mortgage interest, deductible property tax (and any other state/local taxes implicitly included up to the SALT cap), and your input for 'Other Itemized Deductions'.
Compare with Standard Deduction: Compares the total potential itemized deductions with the standard deduction amount for your filing status (based on current year values).
Determine Actual Deduction Benefit:
- If itemized deductions > standard deduction: Benefit = (Itemized Deductions - Standard Deduction)
- If itemized deductions <= standard deduction: Benefit = $0 (as you'd take the standard deduction)
Estimate Tax Savings: Multiplies the Actual Deduction Benefit by your Marginal Tax Rate. (Savings = Benefit * Marginal Rate %)

Note: This calculation assumes the mortgage is for home acquisition debt and simplifies SALT cap interactions (e.g., assumes property tax is the primary SALT component considered here). It does not account for phase-outs or alternative minimum tax (AMT).

Frequently Asked Questions

What if my mortgage is over $750,000?

The calculator limits the deductible interest based on the proportion of the loan up to $750,000. For example, on a $1M loan, roughly 75% of the interest paid might be deductible.

Does this include state tax benefits?

No, this focuses on federal income tax. State rules for mortgage/property tax deductions vary widely and are not included here.

How do I find my Marginal Tax Rate?

It's the tax rate applied to your last dollar of taxable income. You can find it on tax bracket charts for the relevant tax year based on your taxable income and filing status.

What about points paid when getting the mortgage?

Points (prepaid interest) can often be deducted. This calculator doesn't include points; add deductible points to your 'Other Itemized Deductions' if applicable.

Why might my actual savings differ?

Tax laws change, phase-outs based on income might apply, state taxes interact differently, AMT could be a factor, or your other deductions might be structured differently. Always consult official IRS guidance and a tax professional.