Result
How to use this calculator
Enter the land price, your down payment, the interest rate, and the loan term. The calculator shows the monthly principal-and-interest payment, the total interest, and how the down payment changes your monthly cost.
The formula
Loan amount = price − down payment. Monthly payment uses the standard amortization formula: M = L × r(1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate (annual ÷ 12) and n the number of payments.
Land loans are different
Expect larger down payments (often 20–35%), shorter terms (frequently 5–20 years), and rates above home mortgages, because raw land is harder collateral. Compare scenarios by changing the term and rate fields.
FAQ
How much down payment does a land loan require?
Raw land commonly requires 20-35% down; improved lots with utilities may allow less. Terms tighten as the land gets further from build-ready.
Why are land loan rates higher?
Lenders see undeveloped land as riskier collateral: it is harder to sell, generates no rental income, and borrowers are more likely to walk away than with a home.
Can I use a USDA loan for land?
USDA rural housing loans can finance land when it is part of a home purchase and construction, but not raw land alone. See our USDA loan calculator for that scenario.
What is a land contract instead?
A seller-financing arrangement where the seller holds title until you finish payments. Terms vary widely and lack standard mortgage protections — review with an attorney.