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Mortgage Interest Deduction Estimator

Curious how much your mortgage can save you at tax time? The Mortgage Interest Deduction Estimator helps you calculate the potential tax savings you could receive by itemizing your mortgage interest payments—so you can plan ahead and make the most of your homeownership benefits.




Mortgage Interest Deduction Estimator

Estimated Tax Savings

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Curious how much your mortgage can save you at tax time? The Mortgage Interest Deduction Estimator helps you calculate the potential tax savings you could receive by itemizing your mortgage interest payments—so you can plan ahead and make the most of your homeownership benefits.

The Mortgage Interest Deduction Estimator is a tax planning tool designed to estimate how much of your mortgage interest may be deductible on your federal income taxes. In the U.S., homeowners who itemize deductions can often deduct interest paid on mortgage debt up to a certain limit—typically $750,000 for loans taken out after 2017.

This tool is especially useful for new homebuyers, refinancers, and existing homeowners trying to understand the impact of their mortgage on their taxable income. By entering basic financial details, users can quickly estimate whether itemizing their mortgage interest will offer more savings than taking the standard deduction.




How it works

Mortgage Interest Deduction Estimator

To use the estimator, input your annual mortgage interest paid, your filing status (single, married filing jointly, etc.), and total itemized deductions (if any) from other sources like state taxes or charitable donations. The tool calculates whether itemizing with your mortgage interest gives you a higher deduction than the standard deduction, and how much it could reduce your taxable income.

For example, if you paid ₹3,50,000 in mortgage interest and are married filing jointly, the tool compares this against the standard deduction (e.g., ₹25,00,000 for a couple) and tells you whether it’s worth itemizing. It also projects your potential tax savings based on your estimated marginal tax bracket. This gives you clarity on how your mortgage payments may actually benefit you come tax season.



Frequently Asked Questions

What is the mortgage interest deduction Toggle
It allows homeowners to deduct interest paid on home loans from their taxable income if they itemize deductions on their tax return.
What’s the loan limit for deductible mortgage interest Toggle
Interest is typically deductible on mortgage debt up to $750,000 (or $1 million for loans taken before December 15, 2017).
Do I need to itemize to claim this deduction Toggle
Yes. You must itemize your deductions using IRS Schedule A. If the standard deduction gives you more savings, itemizing may not be necessary.
Can I deduct interest on a second home or refinance loan Toggle
Yes, as long as the loan is secured by the property and used to buy, build, or substantially improve the home. Refinance loans also qualify under similar rules.
Does the tool calculate exact tax savings Toggle
It provides a close estimate based on the numbers you enter and typical tax brackets, but you should consult a tax advisor for personalized calculations.