A USDA loan calculator is a free online tool that helps you estimate your monthly mortgage payment, total loan amount, and closing costs for a USDA-backed home loan. With a USDA home loan calculator, you can see how much home you can afford with $0 down in eligible rural or suburban areas.
How to use the USDA loan calculator
Using a USDA loan calculator is a straightforward process, but understanding each input will help you get an accurate estimate. Follow these steps:
1. Enter the home price: This is the total purchase price of the property you’re considering.
2. Input your down payment (if any): USDA loans typically allow 0% down, but that doesn’t mean you can’t make a down payment. Enter a percentage of the home’s price if you plan to make one.
3. Select your loan term: Most USDA mortgages are 30-year fixed-rate loans, but you can adjust if needed.
4. Enter the interest rate: Input the interest rate you expect to receive. Check current market rates or ask a lender for an estimate.
5. Add your annual property taxes: This varies by location. The calculator divides this by 12 to include it in your monthly payment.
6. Include homeowners insurance: Enter an annual estimate so your monthly payment reflects a realistic total.
7. Add any monthly HOA fees: If the property has a homeowners association, include the monthly HOA dues.
The calculator automatically factors in the USDA upfront guarantee fee (currently 1% of the loan amount, which gets rolled into your mortgage) and the annual fee (0.35% of the remaining balance, paid monthly). These also affect your monthly mortgage payment.
Once you input everything, the tool will show you both your estimated monthly payment and your total loan amount after the guarantee fee is added.
📝 Note: This tool is for educational purposes only. Actual loan terms, rates, and approval amounts depend on your complete financial profile and the lender you work with.
What is a USDA loan?
A USDA loan is a zero-down mortgage backed by the U.S. Department of Agriculture. It’s designed for low- to moderate-income borrowers looking to buy homes in USDA-eligible rural areas.
There are two main types of USDA home loans: USDA guaranteed loans (issued by approved private lenders and backed by the USDA) and USDA direct loans (provided directly by the government to very low-income applicants). More on these USDA mortgages below.
Types of USDA loans
USDA Guaranteed Loan
A USDA Guaranteed Loan is the most common option issued by private lenders like banks and credit unions and backed by the USDA.[1] If the borrower defaults, the USDA covers a portion of the lender's loss, which allows lenders to offer favorable terms.
These loans typically come with a 30-year fixed-rate term and are ideal for moderate-income borrowers earning up to 115% of the area median income. If you qualify for a guaranteed loan, it’s one of the widely available programs offered through many lenders and offers competitive rates.
USDA Direct Loan
USDA direct loans are offered directly by the U.S. Department of Agriculture to very low- and low-income borrowers.[2] This type of mortgage may come with subsidized interest rates that reduce the monthly payment based on income level. However, they have stricter limits on income and property requirements than guaranteed loans.
If you're comparing loan amounts and payments, use a USDA direct loan calculator to see how subsidized rates affect your monthly payments compared to a guaranteed loan.
USDA loan eligibility requirements
Before using a calculator to estimate payments, make sure you actually qualify for a USDA loan mortgage. Here’s what most lenders look for:
➜ Property location: The home must be in a USDA-designated rural area. Use the official USDA eligibility map to see if your target property location is approved.
➜ Income limits: Your household income must be less than or equal to 115% of the area median income. This limit varies by location and household size.
➜ Credit score: The USDA doesn’t set a minimum credit score, but most lenders require at least 620 for a smoother underwriting process. If your score is below 620, you may face manual underwriting, which often takes longer.
➜ Debt-to-income ratio: Your total monthly debt payments, including the new mortgage, shouldn’t exceed 43% of your gross monthly income. However, some lenders allow high DTI ratios if you have compensating factors, such as large cash reserves or high credit scores.
➜ Primary residence only: You can only use a USDA loan to finance a home you’ll live in as your main residence, not vacation homes or investment properties.
USDA loan fees and costs explained
While USDA loans don’t require a down payment, borrowers must pay an upfront guarantee fee and an annual fee.
Upfront guarantee fee
To get a USDA loan, you must pay an upfront guarantee fee, which is 1% of the total loan amount. So if you’re borrowing $400,000, you’re responsible for an extra $4,000.
The fee is always rolled into your loan balance, so you don't pay it out of pocket at closing. However, it increases your total loan amount.
Annual fee
USDA loans also charge a 0.35% annual fee on the remaining balance, typically paid monthly.
Unlike conventional loans or FHA loans, USDA loans don’t require mortgage insurance. In fact, these USDA fees are cheaper than mortgage insurance because eligible borrowers benefit from lower interest rates and no down payment.
Even with the added costs, USDA loans remain one of the most affordable paths to homeownership for those who qualify.
Interpreting your calculator results
After entering your information into a free USDA loan calculator, you'll see an estimated monthly payment and total loan amount. Here's how to make sense of the results:
Your monthly payment includes the principal (the amount you borrowed), interest (what the lender charges), property taxes, homeowners insurance, and the monthly portion of the USDA annual fee.
However, several factors impact your monthly payment, with interest rate and loan terms being the major ones. Even a small difference in interest rate could mean thousands of dollars over the life of the loan.
Homeowners also need to pay property taxes and insurance, which vary by location. For this reason, the amount you’ll get from the USDA calculator may be different from what you actually get with a lender.
Try adjusting different variables to understand your affordability range. Input different home prices to see how your payment changes. Test various interest rates to understand how shopping for the best rate affects long-term costs.
Keep in mind that the calculator helps estimate what you may qualify for but isn’t a USDA preapproval tool.
USDA loan vs. FHA, VA, and conventional loans
USDA loans are perfect for qualified buyers in eligible rural and urban areas who have limited savings. The zero down payment and lower mortgage insurance lower your total upfront cost.
If you’re buying a house outside USDA-eligible areas or have a lower credit score, FHA loans may be a good fit. You can qualify for an FHA loan with a score as low as 580, provided that you put down 3.5%, and as low as 500 with a 10% down payment.
VA loans are ideal for active-duty service members, veterans, and surviving spouses. They require zero down payment and have no income limits.
Conventional loans, on the other hand, provide the most flexibility in property type and location. But you’ll pay PMI if you put down less than 20%. The good news is that PMI isn’t permanent.
Next steps: Get preapproved and check eligibility
Once you’ve explored your numbers with the free USDA loan calculator, it’s time to take the next step.
First, verify the property location is USDA-eligible using the USDA eligibility map. Next, gather your financial documents, including recent pay stubs, W-2s or tax returns, bank statements, and any information regarding assets and debts. Contact USDA-approved lenders to compare rates and terms. Not all lenders offer USDA loans, so specifically those experienced with the program.
Ready to find your perfect USDA-eligible home? Clever will connect you with a top real estate agent who will help you navigate rural property searches and negotiate the best deal.
Keep in mind that calculator results are just estimates. Your actual qualification, loan amount, and monthly payment depend on your credit, income, debt levels, and property.
Frequently Asked Questions
What is the 20% rule for USDA?
The 20% rule means you don’t need a 20% down payment with a USDA loan. The program fills that gap, allowing eligible buyers to finance 100% of their home purchase.
Are USDA loan payments cheaper?
Often, yes. Since USDA loans have lower interest rates and no PMI, monthly payments are more affordable compared to FHA or conventional mortgages.
How much do I need to put down?
0%, but you can make a down payment if you want to lower your monthly payment.
Can I get a USDA loan if I make $100k?
It depends on where you live. Income limits vary by county and household size. In high-cost rural areas, a $100k income may still qualify if it’s below 115% of the area median income.
How to get a USDA loan / preapproval?
Here’s how to get a USDA loan:
- Apply through a USDA-approved lender
- Verify that the property is in a USDA-eligible area
- Confirm your income falls within limits for your location
Free USDA loan calculator
Most free USDA loan calculators available online include the upfront guarantee fee and annual mortgage insurance in their calculations. This helps you see the full cost of a USDA mortgage upfront.