USDA Loan Calculator
Estimate a USDA rural home loan payment with the upfront guarantee fee and annual fee. Enter price, rate, term, and taxes to see your full monthly payment.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
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How the USDA Loan Calculator Works
This calculator estimates the monthly cost of a USDA guaranteed rural home loan, including its two signature fees: the upfront guarantee fee that is financed into the loan and the annual fee paid monthly. Enter the home price, down payment, both fee percentages, the interest rate, the term, and yearly taxes and insurance.
How it works
The upfront fee is added to the loan, then the loan amortizes normally, with the annual fee and escrow added each month:
Loan amount = (price − down) × (1 + upfront fee %) Principal & interest = loan × i ÷ (1 − (1 + i)^−n) Total payment = principal & interest + (annual fee ÷ 12) + (taxes & insurance ÷ 12)
USDA loans allow no down payment, so the base loan often equals the full home price.
Worked Example
Suppose a $250,000 home, $0 down, a 1% upfront fee, a 0.35% annual fee, 6.5% rate over 30 years, with $3,600/year taxes and insurance:
- Loan with upfront fee = 250,000 × 1.01 = $252,500
- Principal & interest ≈ $1,595.97/month
- Annual fee = 252,500 × 0.35% ÷ 12 = $73.65/month
- Taxes & insurance = 3,600 ÷ 12 = $300/month
- Total monthly payment ≈ $1,969.62
USDA vs Other Low-Down-Payment Loans
| Loan type | Down payment | Monthly insurance/fee |
|---|---|---|
| USDA | 0% | Annual fee ~0.35% |
| FHA | 3.5% | MIP, typically higher |
| Conventional (low down) | 3%+ | PMI until 20% equity |
| VA | 0% | None (funding fee only) |
Tips for USDA Borrowers
- Confirm eligibility first. Both the property location and your household income must qualify.
- Use exact fee rates. Pull the upfront and annual percentages from your loan estimate to match your real payment.
- Include escrow. Taxes and insurance are part of the monthly total, so enter your yearly figure to see the full payment.
Frequently asked questions
What fees does a USDA loan charge?+
USDA guaranteed loans have two fees: a one-time upfront guarantee fee, commonly around 1% of the loan that is usually financed in, and an annual fee, commonly about 0.35% of the balance, paid monthly. Both replace traditional private mortgage insurance.
Do USDA loans require a down payment?+
No. USDA loans allow 100% financing for eligible buyers in qualifying rural and suburban areas, so the loan amount often equals the home price plus the financed upfront fee. A down payment is optional.
How is the USDA annual fee paid?+
The annual fee is calculated on the loan balance and divided by 12, then added to each monthly payment. It is similar in spirit to monthly mortgage insurance but is generally lower than FHA or conventional PMI.
Who qualifies for a USDA loan?+
USDA loans are for buyers in eligible rural and some suburban areas who meet household income limits for the county. The property must be your primary residence. Check the USDA eligibility maps and income limits before applying.
Why might my fee percentages differ?+
USDA sets the upfront and annual fee percentages, and they can change between program years. This calculator lets you enter the exact rates from your loan estimate so the result stays accurate even if the standard figures change.