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USDA Loan Calculator

Estimate your USDA guaranteed loan payment, with the upfront guarantee fee and the annual fee for fiscal year 2027.

Level: Grades 11–12

  • Common Core standard HSA.SSE.B.4Derive the formula for the sum of a finite geometric series (when the common ratio is not 1), and use the formula to solve problems.
Printable worksheet

USDA Loan Calculator

Know the answer you need? Pick an input to work backward.

Inputs
Upfront guarantee fee

Result

Total monthly payment, first year

$1,928.10

A $252,525.25 USDA loan at 6.25% costs about $1,928.10 a month in the first year, including $73.26 for the annual fee.

Principal and interest
$1,554.84
Annual fee per month
$73.260.35% of the average balance, and it falls each year.
Upfront guarantee fee
$2,525.25Added to your loan.
Total loan amount
$252,525.25
Loan-to-price
101.01%
Total interest
$307,217.66
Annual fees over the loan
$17,204.19If it runs the full term with no refinance.
Your first-year monthly payment
  • Principal and interest$1,554.8480.6%
  • Annual fee$73.263.8%
  • Property tax$200.0010.4%
  • Insurance$100.005.2%

See the step-by-step solution ↓

The annual fee, year by year
The annual fee, year by year
YearAverage scheduled balanceAnnual feePer month
1$251,184.27$879.14$73.26
2$248,138.94$868.49$72.37
3$244,897.72$857.14$71.43
4$241,448.02$845.07$70.42
5$237,776.44$832.22$69.35
6$233,868.69$818.54$68.21
7$229,709.58$803.98$67.00
8$225,282.96$788.49$65.71
9$220,571.60$772.00$64.33
10$215,557.21$754.45$62.87
11$210,220.28$735.77$61.31
12$204,540.06$715.89$59.66
13$198,494.49$694.73$57.89
14$192,060.05$672.21$56.02
15$185,211.74$648.24$54.02
16$177,922.93$622.73$51.89
17$170,165.30$595.58$49.63
18$161,908.67$566.68$47.22
19$153,120.97$535.92$44.66
20$143,768.03$503.19$41.93
21$133,813.49$468.35$39.03
22$123,218.65$431.27$35.94
23$111,942.33$391.80$32.65
24$99,940.70$349.79$29.15
25$87,167.11$305.08$25.42
26$73,571.89$257.50$21.46
27$59,102.21$206.86$17.24
28$43,701.81$152.96$12.75
29$27,310.83$95.59$7.97
30$9,865.54$34.53$2.88

Step-by-step solution

  1. Find the base loan: the price minus your down payment

    $250,000.00−$0.00=$250,000.00

  2. Add the 1% upfront fee to the loan. USDA divides by 0.99, because the fee is charged on the larger total

    $250,000.000.99=$252,525.25

  3. Find the loan payment. A standard formula finds the one amount that clears the loan in 360 months, where the monthly rate is the yearly rate ÷ 12

    $252,525.25×0.005208331−(1+0.00520833)−360=$1,554.84

  4. Find the first year's annual fee: 0.35% of the average balance that year, split over 12 months

    $251,184.27×0.35%12=$73.26

  5. Add everything you pay each month: the loan, the annual fee, property tax and insurance

    $1,554.84+$73.26+$200.00+$100.00=$1,928.10

Test yourself

20 quick questions built from this calculator's formula: work out results, predict what happens when an input changes, and work backward from an answer. Every answer comes with the working.

Please note: Results are estimates for planning and comparison. Lenders, banks, and tax authorities may round differently or include fees not modeled here, so confirm figures with your provider before deciding.

What this calculator does

Find out what a USDA guaranteed loan would cost you each month. Enter the home price, your rate, your property tax and your insurance. You'll see your full payment, including the fees USDA charges.

This loan comes from a private lender, with a guarantee from USDA Rural Development. Two fees pay for that guarantee. One is a 1.00% upfront fee, which you can add to the loan. The other is a 0.35% annual fee, usually paid monthly. Those are the rates for fiscal year 2027.

Where it's used

Why this math matters outside the classroom:

  • Working backward. A buyer divides $250,000 by 0.99 to find a $252,525.25 loan that includes the 1% fee.
  • Monthly budgeting. A family adds about $73.26 of annual fee and $300 of tax and insurance to a $1,554.84 payment.
  • Fee at closing. A buyer with cash pays 1% of $100,000, or $1,000, rather than financing $1,010.10.
  • Comparing loan types. A first-time buyer compares total monthly payments on USDA and FHA loans for the same home.

Grade level and standards: Grades 11–12; Common Core State Standards for Mathematics HSA.SSE.B.4. © Copyright 2010. National Governors Association Center for Best Practices and Council of Chief State School Officers. All rights reserved.

How to use it

  1. Enter the home price and any down payment.
  2. Choose whether to add the upfront fee to the loan or pay it at closing.
  3. Enter your interest rate and the loan term.
  4. Enter your yearly property tax and insurance, then read your total monthly payment.

What the inputs mean

Down payment
USDA guaranteed loans can have no down payment. Enter 0 if you aren't putting money down.
Upfront guarantee fee
USDA lets the fee go into the loan, so the loan can exceed the home's value by that amount. This page treats the price as the appraised value.
Interest rate
Use the rate your lender quotes you.

Formula and method

base loan = price − down payment
total loan, fee financed = base loan ÷ (1 − 1.00%) = base loan ÷ 0.99
upfront fee = total loan × 1.00%
payment = L × i ÷ (1 − (1 + i)^(−n)), where i = yearly rate ÷ 12
annual fee = average scheduled balance for the year × 0.35%
monthly total = payment + annual fee ÷ 12 + property tax ÷ 12 + insurance ÷ 12

L is the total loan, i is the monthly interest rate and n is the number of monthly payments. The payment formula finds the one amount that clears the loan on time.

Why divide by 0.99? The fee is 1% of the total loan, and the total includes the fee. So USDA works backward from the base loan. That's why $250,000 becomes $252,525.25, not $252,500.

The annual fee follows the loan's schedule, not your actual balance. It falls a little each year as the scheduled balance falls. Paying extra on your loan doesn't lower it.

Worked example

A $250,000 home with no down payment, the fee added to the loan, 6.25% for 30 years, $2,400 a year of property tax and $1,200 a year of insurance.

  1. Total loan: $250,000 ÷ 0.99 ≈ $252,525.25.
  2. Upfront fee: $252,525.25 × 1% ≈ $2,525.25.
  3. Loan payment: about $1,554.84 a month.
  4. Average balance in year one: about $251,184.27.
  5. Annual fee: $251,184.27 × 0.35% ÷ 12 ≈ $73.26 a month.
  6. Tax and insurance: $200 + $100 = $300 a month.
  7. Total: $1,554.84 + $73.26 + $300 ≈ $1,928.10.

Result: The first-year payment is about $1,928.10 a month, including about $73.26 for the annual fee.

Understanding the result

Use the total payment for budgeting, not the loan payment alone. In the example, fees, tax and insurance add about $373 a month.

Over a full 30 years, the example's annual fees come to about $17,204.19. That's on top of about $307,217.66 of interest.

Compare this with other loan types you might qualify for. The FHA and VA calculators here work the same way, with their own fees.

Assumptions and limitations

  • Fees are for fiscal year 2027, October 1, 2026 to September 30, 2027. The date of USDA's conditional commitment decides which fees apply.
  • The rate is fixed, and you make equal payments at the end of each month.
  • The annual fee uses the average of 12 scheduled start-of-month balances. Your lender's figure may differ slightly.
  • Tax and insurance stay the same.
  • It doesn't check whether the home's location or your income qualifies. USDA sets those rules.
  • It assumes the appraised value equals the price, and doesn't add closing costs to the loan.
  • It doesn't cover USDA's direct home loans, which are a different program.
  • It treats the annual fee as lasting for the whole scheduled loan.
  • This is an estimate, not a loan offer. Only a lender can tell you what you'd qualify for.

Frequently asked questions

What are the USDA fees right now?

For fiscal year 2027, USDA's notice sets a 1.00% upfront guarantee fee and a 0.35% annual fee. They apply to both purchases and refinances.

Can I add the upfront fee to my loan?

Yes. It's the one cost that can push the loan above the home's appraised value. You can also pay it at closing, and that makes the fee a little smaller.

Can I pay the annual fee up front?

USDA says the fee can't go into the loan, and it's billed each year on the scheduled balance. Lenders can collect it monthly through escrow, the account that holds tax and insurance money.

Does paying extra lower the annual fee?

No. USDA bases it on the scheduled balance, so extra payments don't change it.

Sources

How this calculator is checked

Method: USDA Rural Development FY 2027 Conditional Commitment Notice (fees); USDA annual fee FAQ (scheduled-balance basis, escrow); HB-1-3555 Chapter 16 gross-up. Standard level-payment amortization. Tests use the handbook's $100,000 example and separate decimal arithmetic. The calculation is covered by automated tests with known reference values and edge cases. Last updated 2026-10-31. Found a problem? Tell us.

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