Borgholzhausen lies in the middle of a clearing in the Teutoburg Forest, on the northern edge of the Westphalian Lowland. The mountain range bisects the town's area roughly NW-SE, and is in turn bisected by the mountain pass at which the town of Borgholzhausen was founded. The mountainous part of the Borgholzhausen area generally reaches heights of 200-300 meters ASL, while the pass area and other lower-lying parts are at less than half that elevation.