USDACalc

USDA Loan Calculator

Zero-down home financing for rural and suburban areas — see your estimated payment.

Loan amount

Interest rate (APR)

Loan term: 5 years

What you entered

Loan amount: $25,000Interest rate: 7.5% APRTerm: 5 years

1
Convert the annual rate to a monthly rate
r = 7.5% ÷ 12= 0.6250%
2
Total number of monthly payments
n = 5 years × 12= 60 payments
3
Apply the amortizing-loan formula
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]= $500.95/mo
4
Total paid over the full term
$500.95 × 60 payments= $30,056.92
5
Total interest paid
$30,056.92 − $25,000.00 principal= $5,056.92

Result

Monthly payment: $500.95

Over 5 years you'll pay $5,057 in interest on top of the $25,000 you borrowed — $30,057 total.

USDA loan monthly payment at 6.5%

USDA rural development loans require no deposit, so the loan is typically the full purchase price. Each row is principal and interest only at 6.5%.

Loan amount	15-year payment	20-year payment	30-year payment	Total interest over 30 years
$150,000	$1,306.66	$1,118.36	$948.10	$191,317
$200,000	$1,742.21	$1,491.15	$1,264.14	$255,089
$250,000	$2,177.77	$1,863.93	$1,580.17	$318,861
$300,000	$2,613.32	$2,236.72	$1,896.20	$382,633
$400,000	$3,484.43	$2,982.29	$2,528.27	$510,178

Two eligibility tests decide whether this loan is available at all, and both are unusual. The property must sit in a USDA-designated rural area, which is broader than the word suggests and includes many small towns and outer suburbs - check the address against the USDA eligibility map rather than assuming. And household income must fall below a limit set by county and household size, which makes this one of the few mortgage programmes with an income ceiling rather than a floor. Costs include an upfront guarantee fee, usually financed, plus a smaller annual fee collected monthly - lower than FHA's equivalent. Loan amounts are typically modest because the eligible areas are lower-cost. Property tax and insurance are extra.

USDA loan program

USDA Rural Development loans offer 100% financing (no down payment) for homes in eligible rural and suburban areas. There are income limits (typically 115% of area median income) and the home must be in a USDA-eligible location. Guarantee fees apply: 1% upfront and 0.35% annual.

Is your area eligible?

USDA eligibility maps cover more areas than most people expect — many suburbs and small towns qualify. Check the USDA eligibility map at rd.usda.gov. The program is designed for moderate-income buyers who can't get conventional financing but can afford monthly payments.

Frequently asked questions

Who qualifies for a USDA loan?

You must buy in a USDA-eligible area (surprisingly many suburbs qualify), have household income at or below 115% of area median income, have a credit score of 640+ (some lenders accept lower), and demonstrate ability to repay. The property must be a primary residence — no investment properties or second homes.

What are USDA loan fees?

Two fees: 1% upfront guarantee fee (can be rolled into the loan) and 0.35% annual fee. On a $200,000 loan: upfront fee = $2,000, annual fee = $700/year ($58/month). These are lower than FHA MIP (1.75% upfront + 0.55% annual) and there's no conventional PMI.

USDA vs FHA — which is better?

USDA wins on: zero down (vs FHA 3.5%), lower annual fees (0.35% vs 0.55%), no upfront fee cap. FHA wins on: no geographic restrictions, no income limits, available in all areas. If your area is USDA-eligible and you're under the income limit, USDA is almost always the better deal.