Introduction
This USDA Loan Calculator shows what a USDA home loan may cost each month. USDA loans help people buy homes in rural and some suburban areas, and they allow $0 down. Type in your home price, down payment, loan term, and interest rate. The calculator does the rest.
USDA loans have two fees that other loans do not. The first is the upfront guarantee fee, a one-time charge based on your loan amount. You can pay it at closing or roll it into the loan. The second is the annual fee, also called mortgage insurance premium (MPI). It is split into 12 parts and added to each monthly payment. Unlike a conventional loan, there is no separate PMI to drop once you hit 20% equity. This tool figures out both fees for you.
Your results show a full monthly payment: principal and interest, the USDA annual fee, property taxes, home insurance, and any other costs like HOA dues. You also get total interest paid, an estimated APR, a chart of where your money goes, and a side-by-side look at rolling the fee in versus paying it at closing.
You can also build a full amortization schedule. It lists each year and each month, so you can see how much goes to principal, how much goes to interest, and how your balance drops over time. Every step of the math is shown, so you can check the numbers yourself before you talk to a lender.
How to use our USDA Loan Calculator
Enter your home price, loan details, USDA fees, and monthly costs. The calculator shows your total monthly payment, the USDA upfront guarantee fee, the USDA annual fee, total interest, an estimated APR, and a full amortization schedule.
Purchase Price: Type the home price or drag the slider. You can pick any amount from $50,000 to $1,000,000.
Down Payment (% of price): Enter the percent you plan to put down. USDA loans allow 0% down, so you can leave this at 0. The dollar amount shows below the box.
Base Loan Amount: This fills in on its own as price minus down payment. Check the override box if you want to type your own loan amount, such as for a refinance.
Loan Term: Pick 15 years or 30 years. USDA guaranteed loans use a fixed rate.
Interest Rate: Enter your loan rate, from 3% to 15%. You can change it any time.
Credit Score Tier: Choose the range that fits your credit score. The rate goes up or down to match the tier you pick.
USDA Upfront Guarantee Fee Rate: Click the pill to type an exact rate, or use the slider. The standard rate is 1.00% of the base loan.
Finance Upfront Fee Into Loan: Turn this on to roll the fee into your loan. Turn it off to pay the fee at closing.
USDA Annual Fee Rate (MPI): Enter the yearly fee rate. The standard rate is 0.35%, and it is split into monthly parts.
Property Taxes: Pick "% of price" or "$ per year," then enter your tax amount. The tool shows both the yearly and monthly cost.
Homeowners Insurance: Enter your yearly insurance cost as a percent of the home price. The monthly cost shows below.
Other Monthly Costs: Add HOA dues, utilities, or any other monthly bills you want counted.
Calculate and Reset: Click Calculate to see your results and the step-by-step math. Click Reset to Defaults to start over.
Origination Month, Day, and Year: Enter the date your loan starts, then click Generate Amortization Schedule to see payments by year. Click "Months" on any year to open the monthly detail.
What Is a USDA Loan?
A USDA loan is a home loan backed by the U.S. Department of Agriculture. It helps people buy homes in rural and some suburban areas. The biggest perk: you can buy with $0 down payment. A bank or lender gives you the money, and the USDA promises to cover part of the loss if the loan is not paid back. That promise is why lenders can offer no down payment and low rates.
Who Can Get One
- Location: The home must sit in a USDA-eligible rural area. Many small towns and edges of cities count.
- Income: Your household income must stay under the limit for your county. USDA loans are made for low- and moderate-income buyers.
- Credit: Most lenders want a score of 640 or higher for the automated system. Under 640, a person reviews your file by hand.
- Home use: It must be your main home, not a rental or vacation house. For an investment property, you would need a different loan.
The Two USDA Fees
USDA loans do not use regular PMI. Instead, they have two guarantee fees:
- Upfront guarantee fee: 1% of the loan. You pay it once. On a $200,000 loan, that is $2,000. You can pay it at closing or roll it into the loan so you owe nothing extra that day.
- Annual fee: 0.35% of the loan balance. This is split into 12 parts and added to your monthly payment. It is figured out again each year on your new balance, so it slowly shrinks as you pay the loan down.
Rolling the upfront fee into the loan saves cash today but makes your loan bigger. A bigger loan means a slightly higher monthly payment and more interest over the years. It also pushes up your loan-to-value ratio on day one.
What Your Monthly Payment Includes
- Principal and interest (P&I): pays off the loan and the cost of borrowing.
- USDA annual fee: 0.35% of the balance, split monthly.
- Property taxes: set by your county, usually held in escrow.
- Homeowners insurance: protects the house.
- Other costs: HOA dues or anything else you pay each month.
Lenders compare that whole payment to your income using a debt-to-income ratio, so paying down other balances first can help you qualify.
Good and Bad Points
Good: No down payment. Fees are lower than FHA mortgage insurance. Rates are fixed, so your P&I never changes. Sellers can help pay your closing costs.
Bad: Only certain areas qualify. Income caps shut out higher earners. USDA guaranteed loans are fixed-rate only, with 30 years being most common and 15 years sometimes offered. Starting with no equity means you owe close to the full home price on day one. If you served in the military, a VA loan may cost less.
Why Your Credit Score Matters
A higher score usually earns a lower interest rate. Even a small rate drop can save thousands of dollars over 30 years, because interest is charged on your balance every single month. Paying down credit cards and paying bills on time before you apply can lower your rate and your payment. Once you own the home, extra principal payments can cut years off the loan.