Land Payment Calculator
Enter the land price, down payment, rate and term to see your land loan payment, monthly or annual, plus total interest, cash needed at closing, price per acre, any balloon payment and a year-by-year schedule.
Land payment calculator
How land loans differ from home mortgages
Land is harder for a lender to resell than a house, so land loans usually ask for a larger down payment, carry a higher rate and have shorter terms than a 30-year mortgage. Raw land with no road, power or water is usually the hardest to finance; a lot ready for building is easier. Ask lenders for their exact down-payment and term rules for your type of land.
- Where to look: local banks and credit unions, Farm Credit lenders for rural and agricultural land, USDA programs for some rural buyers, and seller (owner) financing.
- Balloon loans: seller-financed and some bank land loans set payments as if over 15 or 20 years but make the remaining balance due after 3 to 10 years. Enter a balloon year to see what you'd owe then; you'd need to pay it, refinance or sell.
- Annual payments: farm and ranch loans often have one payment a year timed to harvest income. Choose annual payments to compare.
- Other costs: survey, title insurance, a perc (soil) test, and later property tax and access or utility costs. Building on the land? Many buyers later roll the land loan into a construction loan.
Land payment formula
The payment uses the standard amortization formula: payment = loan × i ÷ (1 − (1 + i)−n), where i is the rate per payment and n the number of payments. $90,000 at 8.5% for 15 years monthly is $886.27 a month.
Need to work out the size of a parcel first? Use the acreage calculator.
Common questions
How do I calculate a land loan payment?
Subtract your down payment from the price, then use the amortization formula. A $120,000 parcel with 25% down leaves $90,000; at 8.5% for 15 years that's $886.27 a month.
How much do you need to put down on land?
Usually more than on a house, and it varies by lender and by how developed the land is. Get quotes from local banks, credit unions and Farm Credit lenders.
What is a balloon payment on land?
A large final payment of the remaining balance, due before the loan would normally be paid off. It's common in owner-financed land deals.
Can I get a 30-year loan on land?
It's uncommon for raw land. Land loans are typically shorter, often 5 to 20 years, though some agricultural lenders offer longer terms on farmland.
Is owner financing a good way to buy land?
It can be quicker and more flexible, but rates can be higher and many deals have balloon payments. Use a written contract and title insurance.
Sources
- USDA Farm Service Agency: Farm ownership loans
- Farm Credit Administration: About the Farm Credit System
- Consumer Financial Protection Bureau: What is a balloon payment?
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.