Loan Types & Programs

USDA Loan Calculator

Estimate the payment on a USDA Rural Development loan — 0% down — including the upfront guarantee fee and the monthly annual fee.

Inputs
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Estimates only. Adjust any value to recalculate instantly.

Results
Estimated monthly payment $2,003.54 0% down · $303,000 financed at 6.50%
Principal & interest $1,915.17
Monthly annual fee $88.38 0.35%/yr
Upfront guarantee fee $3,000 1.00% financed
Total interest $386,460
Monthly payment split
Monthly payment split Principal & interest: $1.9kAnnual fee: $88
  • Principal & interest $1.9k
  • Annual fee $88

USDA loans allow 0% down for eligible rural and suburban buyers within income limits. They add an upfront guarantee fee ($3,000, usually financed) plus a small annual fee ($88.38/mo here) collected monthly for the life of the loan.

Yearly amortization (principal & interest)View table
YearPrincipalInterestBalance
1$3,387$19,595$299,613
2$3,614$19,368$296,000
3$3,856$19,126$292,144
4$4,114$18,868$288,031
5$4,389$18,593$283,641
6$4,683$18,299$278,958
7$4,997$17,985$273,961
8$5,331$17,651$268,630
9$5,689$17,293$262,941
10$6,070$16,912$256,872
11$6,476$16,506$250,396
12$6,910$16,072$243,486
13$7,372$15,610$236,113
14$7,866$15,116$228,247
15$8,393$14,589$219,854
16$8,955$14,027$210,899
17$9,555$13,427$201,344
18$10,195$12,787$191,149
19$10,878$12,104$180,272
20$11,606$11,376$168,666
21$12,383$10,599$156,282
22$13,213$9,769$143,070
23$14,098$8,884$128,972
24$15,042$7,940$113,931
25$16,049$6,933$97,882
26$17,124$5,858$80,758
27$18,271$4,711$62,487
28$19,494$3,488$42,993
29$20,800$2,182$22,193
30$22,193$789$0

How the usda loan calculator works

A USDA loan, issued through the Rural Development program, lets eligible buyers in qualifying rural and many suburban areas finance a home with zero down, provided household income falls under the area limit. It is built for moderate-income borrowers who lack a large down payment but can support a steady mortgage.

Two fees fund the guaranty: an upfront guarantee fee, usually financed into the balance, and an annual fee charged monthly. This calculator folds the upfront fee into the loan, layers the annual fee onto each payment, and shows the real monthly figure.

Worked example

Worked example: with home price of $300,000, interest rate of 6.50% and loan term (years) of 30, the usda loan calculator shows estimated monthly payment of $2,003.54.

Principal & interest
$1,915.17
Monthly annual fee
$88.38
Upfront guarantee fee
$3,000
Total interest
$386,460
How it scales
Home priceEstimated monthly payment
$200,000$1,335.69
$300,000$2,003.54
$400,000$2,671.39
$525,000$3,506.20

The formula

The financed balance equals the base loan plus the upfront guarantee fee (base loan times roughly 1 percent). The principal-and-interest payment uses the standard amortization formula on that balance, then the monthly annual fee — about 0.35 percent of the loan balance divided by twelve — is added on top of each installment.

Assumptions & limitations
  • The upfront guarantee fee is assumed financed, so it raises the balance you owe interest on rather than being paid in cash.
  • Current factors are applied: roughly a 1 percent upfront fee and a 0.35 percent annual fee, both of which the USDA can adjust.
  • Eligibility hinges on property location and household income limits; the estimate does not verify that you or the home qualify.
  • The annual fee runs for the life of the loan and does not auto-cancel once you build equity, unlike conventional PMI.
  • Taxes, homeowners insurance, and any HOA dues are excluded; a fixed rate with on-time payments is assumed throughout.

Reference data

Current figures behind this tool: 2026 USDA Loan Income Limits.

Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender or a licensed advisor.

Frequently asked

Questions about the usda loan calculator

What makes a property eligible for a USDA loan?

Location and income. The home must sit in an area the USDA designates as rural or eligible suburban, which covers a surprisingly large share of the map beyond major cities.

Your total household income must also fall under the limit for that county, typically pegged to local median earnings. Both tests must pass, and the USDA maintains an online map and income tables to check before you apply.

How is the USDA annual fee different from the upfront guarantee fee?

The upfront fee is a one-time charge, around 1 percent of the loan, usually financed into your balance at closing. The annual fee is ongoing: roughly 0.35 percent of the outstanding balance, divided into twelve and added to each monthly payment.

Together they fund the program in place of conventional mortgage insurance, and the annual portion persists for the full loan term.

Can I use a USDA loan for any home in a rural area?

Not quite. Beyond the location and income tests, the property must be your primary residence, modest in size and design for the area, and structurally sound enough to pass the appraisal and inspection. Income-producing farms, vacation homes, and investment properties are excluded.

The program targets owner-occupants buying a place to live, not buyers assembling acreage or rental portfolios.

Is the USDA Loan Calculator free to use?

Yes. Every calculator on MortgageLoansCalculator is completely free, with no sign-up, login or paywall. Run as many scenarios as you like.

Who qualifies for a USDA loan?

Buyers of a primary home in an eligible rural or suburban area whose household income is under the local limit — $119,850 for a 1–4 person household in most areas for 2026. Much of the map outside city cores qualifies.

What fees does a USDA loan charge?

In place of a down payment, USDA charges a one-time upfront guarantee fee (financed into the loan) plus a smaller annual fee spread across your payments — both lighter than comparable FHA mortgage insurance.

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