USDA Loan Calculator

About the USDA Mortgage Calculator

Our USDA loan calculator helps you estimate your monthly mortgage payments, including taxes and insurance, to give you a better idea of what to expect when financing your home purchase using the USDA guaranteed loan program.

USDA loans differ from other mortgage options, and this calculator is designed to account for the unique benefits and costs of using a USDA home loan. For example, USDA loans do not require a down payment or private mortgage insurance (PMI).

Additionally, this calculator includes USDA upfront and annual fees, which are specific to USDA guaranteed loans. These fees are not required for USDA direct loans, which are offered directly by the U.S. Department of Agriculture rather than individual lenders.

Learn about the difference between USDA Guaranteed and USDA Direct Loans here.

USDA Loan Calculator Definitions

Input	Explanation
Home Value	Home value is the total estimated purchase price of the home.
Down Payment	Down payment is the amount of money you intend to pay upfront for the home at closing. USDA loans don't require a down payment, but putting money down can reduce your starting loan amount.
Interest Rate	Interest rate is the cost of borrowing money to purchase your home with a USDA loan. APR stands for "Annual percentage rate" and is used to help estimate your interest rate, including origination fees.
Loan Term	Loan term is the length of time you want to repay the loan. USDA guaranteed loan terms are set for a period of 15 or 30 years.
Property Tax	Property taxes are generally estimated to be 1.2% of the home's value, but will vary depending on your location.
Home Insurance	Annual homeowner's insurance is typically 0.35% of the home's value and is included in your monthly mortgage payment for USDA loans.

USDA Loan Payment Breakdown

Our USDA loan calculator provides the total estimated monthly payment, along with a monthly breakdown that shows how your payment is calculated. You will see the following:

• Principal & Interest: The bulk of your monthly payment. The principal is the amount borrowed, which builds equity over time as payments are made.
• Taxes: Estimated property taxes based on your home’s value.
• Insurance: Estimated annual homeowners insurance, divided monthly.
• USDA Fees: Includes both the upfront and annual guarantee fees associated with the USDA Guaranteed Loan program.

Upfront and Annual Program Fees

USDA loans don't require PMI even if you don't have a down payment, because the annual fee allows the USDA to insure your mortgage.

Instead, USDA guaranteed loans have an upfront guarantee fee and an annual fee, which are automatically included in the calculator’s monthly payment breakdown. Here’s how the fees work:

• Upfront Guarantee Fee: A 1% one-time charge added to your loan amount
• Annual Fee: A recurring fee of 0.35% of the remaining loan balance, built into your monthly payment.

Origination Fee Assumptions

This USDA loan calculator assumes a lender origination fee of 1% of the total loan amount and includes it in the estimated APR calculation for educational purposes only.

Origination fees can vary, so be sure to check with your lender to confirm the specific amounts they’re charging.