Enter all but one of the principal loan amount, monthly interest rate, total number of monthly payments, and Mortgage Credit Certificate into the calculator to determine the monthly mortgage payment, and this calculator can also evaluate any of the variables given the others are known.

Mcc (Mortgage Credit Certificate) Formula

The following formula can be used to calculate the monthly mortgage payment with a Mortgage Credit Certificate (MCC):

MP = (P * r * (1 + r)^n) / ((1 + r)^n - 1) * (1 - MCC)


  • MP is the monthly mortgage payment
  • P is the principal loan amount
  • r is the monthly interest rate
  • n is the total number of monthly payments
  • MCC is the Mortgage Credit Certificate, which represents the percentage of the mortgage interest that can be claimed as a tax credit

To calculate the monthly mortgage payment with an MCC, follow the same steps as the regular mortgage payment calculation. However, after obtaining the initial result, multiply it by (1 – MCC) to account for the tax credit provided by the Mortgage Credit Certificate.

What is a Mcc (Mortgage Credit Certificate)?

A Mortgage Credit Certificate (MCC) is a tax credit program for first-time homebuyers that allows them to convert a portion of their mortgage interest into a direct dollar for dollar tax credit on their federal income tax return. The program is designed to help lower-income individuals or families afford home ownership. The MCC is registered with the Internal Revenue Service (IRS) and is effective for the life of the loan, as long as the homeowner resides in the property. The amount of the credit is tied to a local formula that considers the underlying mortgage amount and the individual homeowner’s income. The credit can be claimed each year the homeowner keeps the loan and lives in the house purchased with the loan. The homeowner may also re-apply for the MCC tax credit if they refinance their original mortgage loan.

How to Calculate Mcc (Mortgage Credit Certificate)?

The following steps outline how to calculate the Mortgage Credit Certificate (MCC).

  1. First, determine the mortgage interest rate (%).
  2. Next, determine the mortgage loan amount ($).
  3. Next, gather the formula from above = MCC = (MIR x MLA) / 100.
  4. Finally, calculate the Mortgage Credit Certificate.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

mortgage interest rate (%) = 4.5

mortgage loan amount ($) = 200,000