Calculating Your Monthly Real Estate Deductibles (Primary Residence)

Calculating Your Monthly Real Estate Deductibles (Primary Residence)


  • Mortgage, at current rates you will pay about $425 per month for every $100,000 of debt. This cost is fixed for the length of the lock rate of the loan.
  • Taxes and common charges (billed as Maintenance in co-ops) are set costs that usually go up 1-5% each year.


  • 100% of interest payments of total interest on $750,000 of a mortgage for a primary residence.
  • $10,000 of taxes per year on your primary residence.

How deductions work

Annually you pay income taxes. You pay these taxes based on your income. If your income is $100,000 for a year and your tax bracket is at 40% then you pay $40,000 in taxes.
To realize the tax benefits of owning a home take your tax deductions from your primary residence and reduce your income by that amount. So if you earn $100,000 but you have $10,000 in tax deductions for real estate you will only pay taxes on $90,000 of income. If your tax becket is 40% then you will pay $36,000. You are saving $4,000 in this scenario.

How to calculate your deductions

  • Taxes are easy, it’s what your tax payments for the year are, up to 10K.
  • Interest, for the first several years interest will make up about 75% of your mortgage payments. Here is a great interest payment calculator you can use HERE.


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