David is a Chartered Financial Analyst and a certified USDA loan underwriter with deep expertise in rural development housing programs.
This 4-in-1 USDA Loan calculator helps you estimate your monthly payment (P&I). Enter any three values for your USDA loan—Principal, Rate, Term, or Payment—and we will solve for the fourth.
USDA Loan Calculator
USDA Loan (Amortization) Formulas
i = R / 12 / 100 (Monthly Rate)
n = T * 12 (Number of Months)
Solve for Monthly Payment (M):
M = P * [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Solve for Loan Amount (P):
P = M * [ (1 + i)^n – 1 ] / [ i(1 + i)^n ]
Solve for Term (n):
n = log( M / (M – P*i) ) / log(1 + i)
Solve for Rate (i):
(No direct formula; solved iteratively)
Formula Variables
- (P) Loan Amount: The total loan principal. For USDA, this is the amount *after* the Guarantee Fee (similar to UFMIP) has been added.
- (R) Annual Rate: The Annual Percentage Rate (APR) you receive from your lender.
- (T) Loan Term: The loan term, typically 30 years for USDA loans.
- (M) Monthly Payment: The fixed monthly payment (Principal & Interest only). This does *not* include the separate *monthly* Guarantee Fee, taxes, or insurance.
Related Calculators
What is a USDA Loan?
A USDA loan is a mortgage loan insured by the U.S. Department of Agriculture as part of its Rural Development (RD) program. This program is designed to improve the economy and quality of life in rural areas. Like FHA and VA loans, this government backing protects lenders and allows them to offer incredible benefits.
The single biggest benefit of a USDA loan is the $0 down payment requirement, making it one of the last remaining no-down-payment loans available (along with VA loans). This allows eligible borrowers in designated rural or suburban areas to purchase a home with no money down. While the definition of “rural” sounds restrictive, 97% of the U.S. landmass is in an eligible area, including many suburbs.
USDA loans do have an “Guarantee Fee,” which is similar to FHA’s MIP. It has an upfront component (usually rolled into the loan amount, P) and an annual fee paid monthly. This calculator estimates the Principal & Interest (P&I) payment. Your total housing payment will also include the monthly Guarantee Fee, property taxes, and homeowner’s insurance.
How to Calculate a USDA Loan Payment (Example)
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Identify New Loan Variables
You are getting a 30-year USDA loan. After rolling in the upfront Guarantee Fee, your total loan amount is $250,000.
• Loan Amount (P): $250,000
• Annual Rate (R): 6.3%
• Loan Term (T): 30 years -
Convert to Monthly Terms (i, n)
The formula uses monthly values:
• Monthly Rate (i): 6.3% / 12 / 100 = 0.00525
• Number of Months (n): 30 years * 12 = 360 -
Choose the Payment Formula
Use the standard formula to solve for Monthly Payment (M):
M = P * [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] -
Calculate the Monthly Payment
Plug in the monthly values:
• Numerator: 0.00525 * (1 + 0.00525)^360 = 0.03407
• Denominator: (1 + 0.00525)^360 – 1 = 5.489
M = $250,000 * [ 0.03407 / 5.489 ]
M = $250,000 * 0.006205 = $1,551.25
Your new monthly P&I payment will be $1,551.25. (Note: You must still add your monthly Guarantee Fee to this).
Frequently Asked Questions (FAQ)
What is the USDA Guarantee Fee?
Similar to FHA MIP, the USDA Guarantee Fee helps fund the program. It has an upfront fee (e.g., 1.0% of the loan amount) that is financed into the loan, and an annual fee (e.g., 0.35% of the balance) that is paid monthly.
What are the USDA eligibility requirements?
There are two main eligibility types:
1. Property Eligibility: The home must be located in a USDA-designated rural or suburban area. You can check the official USDA maps for this.
2. Borrower Eligibility: You must meet income limits (e.g., your household income cannot be *too high*), have a stable income, and meet the lender’s credit requirements.
Do I have to be a first-time buyer for a USDA loan?
No. USDA loans are available to all qualified buyers, not just first-time buyers. However, the property must be your primary residence.
What’s the difference between a USDA and FHA loan?
The biggest difference is the down payment. USDA requires $0 down, while FHA requires a minimum of 3.5% down. However, USDA loans have geographic restrictions (must be in an eligible area) and income limits, while FHA loans do not.