Steinhagen is in the Ems River basin on the southern slopes of the Teutoburg Forest, which runs through the notrhwestern portion of the municipality. This mountain range is the eastern boundary of the Munsterland and of the Westphalian Bay. Steinhagen's highest point is 306 meters above sea level. The Kotte pond is 70 meters at the deepest. The city of Bielefeld is 10 km to the west and Gütersloh is 15 km to the south.