Table of Contents
ToggleLand Loan Calculator: Estimate Payments on Raw Land, Lots, and Acreage
1. Land type (sets a typical down payment and rate — override below)
2. Loan terms
3. Optional costs
Show year-by-year amortization schedule
| Year | Principal paid | Interest paid | Remaining balance |
|---|
Estimates only, not a loan offer or credit decision. Land loans typically carry rates 1 to 3 percentage points above conventional mortgage rates and shorter terms than home mortgages, often with a balloon payment due before the loan fully amortizes. Confirm rate, term, and down payment with a lender before relying on these figures.
Payment figures were calculated using standard amortization formulas and checked against 2026 lender and government rate data; a licensed [loan officer / mortgage professional] reviewed the final figures for accuracy.
Land loans cost more than mortgages: lenders ask for 20% to 50% down, charge rates 1 to 3 percentage points higher, and set terms of 5 to 15 years. Freddie Mac's 30-year mortgage average reached 6.95% on September 17, 2026. The reading marked a 19-month high. Every bank-loan payment example in this guide uses a rate set above that benchmark.
What Is a Land Loan Calculator?
A land loan calculator is a tool that converts a land price, down payment, interest rate, and loan term into an estimated monthly payment. Full-featured versions add total interest and an amortization schedule, which is a month-by-month table splitting each payment into principal and interest. Raw land loan calculators, vacant land loan calculators, and lot loan calculators all run the same formula, so the inputs matter more than the label.
The formula is M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where M is the monthly payment, P is the loan amount, r is the monthly rate (annual rate ÷ 12), and n is the number of monthly payments. For an $80,000 loan at 8.5% over 15 years (180 payments), r equals 0.00708. Solving for M gives $787.79 a month.
How Do You Use a Land Loan Calculator?
Enter six inputs into the calculator: purchase price, down payment, interest rate, loan term, closing costs, and annual property taxes. Each field takes a specific format:
- Purchase price: the agreed price, entered in U.S. dollars (USD)
- Down payment: the cash paid at closing, entered as dollars or as a percentage of the price
- Interest rate: the annual rate the lender quotes, entered as a percentage
- Loan term: the repayment length, entered in years (multiply by 12 for months)
- Closing costs: the fees due at closing, budgeted at 2% to 5% of the price
- Property taxes: the annual county tax bill, divided by 12 for the monthly amount
Enter the amortization length, not the balloon date, if the lender quotes a balloon payment. Results aren't credit decisions, and lenders set final terms after underwriting.
How Much Is the Monthly Payment on a Land Loan?
Monthly payments range from $787.79 on a $100,000 improved lot with 20% down to $858.98 on a $100,000 raw parcel with 35% down.
| Scenario | Price | Down payment | Loan amount | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|---|---|---|
| A: Improved lot | $100,000 | $20,000 (20%) | $80,000 | 8.5% | 15 years (180 months) | $787.79 | $61,802.50 |
| B: Raw parcel | $100,000 | $35,000 (35%) | $65,000 | 10.0% | 10 years (120 months) | $858.98 | $38,077.57 |
| C: Raw parcel, longer term | $100,000 | $35,000 (35%) | $65,000 | 10.0% | 15 years (180 months) | $698.49 | $60,728.80 |
Scenario B costs $71.19 more each month than scenario A despite a $15,000 larger down payment, because the rate runs 1.5 points higher and the term runs five years shorter. Both rates fall inside published 2026 ranges, and neither is a lender quote. Taxes and closing costs sit outside both payments.
How Much Down Payment Does a Land Loan Require?
Down payments on land loans run 15% to 50%, and the percentage rises as the parcel has fewer improvements.
| Land type | Features | Down payment |
|---|---|---|
| Improved land | Utilities and road access | 15% to 30% |
| Unimproved land | Road access, no utilities | 20% to 35% |
| Raw land | No road, utilities, or other improvements | 30% to 50% |
Ranges by land type come from 2026 lender guides. Credit score moves the figure within each range: a score above 740 often earns the lower end, and a score under 680 can push raw-land borrowers toward 40% or 50% down. Minimum scores run 640 to 700, with 720 or higher earning the best terms.
Lenders want debt-to-income (DTI) ratio, the share of gross monthly income spent on debt payments, below 43%, and borrowers at 36% or below get the best terms. At $6,000 in gross monthly income, the 43% ceiling equals $2,580 in total monthly debt payments, including the new land payment.
What Interest Rate Does a Land Loan Carry?
Rates on land loans run 7.5% to 11.5% in 2026, and lenders price land loans 1 to 3 percentage points above mortgage rates. Published guides put rates at 7.50% to 9.75% for improved lots and 8.50% to 11.50% for raw land. Mortgage benchmarks like Freddie Mac's survey cover borrowers with 20% down and excellent credit. Land quotes start above the 6.95% average.
Each one-point rate change moves the payment on an $80,000, 15-year loan by $46 to $48 a month: $741.61 at 7.5%, $787.79 at 8.5%, and $835.38 at 9.5%. Since rates aren't standardized across lenders, three written quotes show the real spread on a specific parcel.
How Long Is a Land Loan Term?
Terms on land loans run 5 to 20 years, and balloon payments, a lump sum due when the term expires, often come due after 5 to 7 years.
Payments of $627.26 a month on a $65,000 loan at 10% with a 20-year schedule leave $54,646.96 due at a 7-year balloon (month 84). Month 84 leaves 84% of the original $65,000 unpaid. Regular payments don't clear a balloon loan: seven years of payments retire only $10,353.04 of principal, so the borrower must refinance or pay cash on the balloon date.
What Costs Does a Land Loan Calculator Leave Out?
Closing costs, property taxes, site testing, and utility work sit outside the calculator, and closing costs alone add 2% to 5% of the price. On a $100,000 parcel, 2% to 5% equals $2,000 to $5,000, so the improved lot in scenario A requires $22,000 to $25,000 in cash at closing ($20,000 down plus closing costs). Costs split into four line items:
- Closing costs: title insurance, recording fees, transfer taxes, survey, appraisal, and attorney fees
- Property taxes: $83.33 a month on a $100,000 parcel at a 1% county rate, lifting the scenario A payment to $871.12
- Site testing: a percolation (perc) test, the soil check that shows whether the ground supports a septic system
- Utility work: well drilling, electric hookup, and driveway construction
Which Lenders Finance Land?
Local banks, credit unions, Farm Credit associations, the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA), and sellers finance land, and each fits a different buyer.
| Lender type | Best fit | Terms to expect |
|---|---|---|
| Local banks and credit unions | Buyers with credit scores of 620 to 660 or higher who want a nearby parcel | Portfolio loans, shorter terms, possible balloons |
| Farm Credit associations | Farm, ranch, pasture, and recreational buyers | Long-term fixed rates |
| FSA direct farm ownership | Family farmers who can't get commercial credit | Up to $600,000 for up to 40 years |
| FSA down payment program | Beginning and socially disadvantaged farmers | 5% down, FSA finances 45% up to $300,150 over 20 years |
| Seller financing | Buyers who miss bank criteria | Negotiated terms, by contract for deed or deed of trust |
Portfolio lenders at local banks and credit unions accept scores of 620 to 660, and Farm Credit associations, cooperative lenders in the Farm Credit System, offer long-term fixed rates. FSA, which lends to family farmers unable to get commercial credit, set its September 2026 rates at 6.000% for direct farm ownership loans and 2.000% for the down payment program.
Buying a $300,000 farm through the down payment program requires $15,000 down (5%) and $135,000 from FSA (45%) over 20 years. The FSA loan costs $682.94 a month at 2.000%, versus $1,171.56 a month for the same $135,000 at 8.5%. Another lender covers the remaining 50% of the price. A contract for deed leaves the deed with the seller until the buyer pays in full, while a deed of trust gives the buyer the deed at closing and allows building immediately.
How Can You Lower a Land Loan Payment?
Four moves cut a land loan payment: buy improved land, raise the down payment, extend the term, and add extra principal.
- Buy improved land. Utility access within a quarter mile (0.4 kilometers) or existing county road frontage can move a parcel into the improved category, and one lender guide says that shift trims 1 to 2 points off the rate.
- Raise the down payment. Payment on the improved lot drops from $787.79 to $689.32 a month when the down payment moves from 20% to 30%, because the loan shrinks from $80,000 to $70,000.
- Extend the term. Stretching the raw parcel's term from 10 to 15 years lowers the payment by $160.49 and increases total interest by $22,651.23.
- Add extra principal. Confirm first that the loan carries no prepayment penalty; then $200 extra each month retires the $80,000 improved-lot loan in 121 months instead of 180 and saves $22,491.83 in interest.
FAQs
Yes. Credit unions, local banks, specialty lenders, and sellers fund raw land, and lenders approve these loans more readily when the buyer shows a plan to build on or use the parcel.
Lenders set the minimum between 640 and 700, and a score of 720 or higher earns the best rates. Scores under 640 typically disqualify buyers from traditional land loans and point them toward seller financing.
No. Closing costs run 2% to 5% of the purchase price and sit outside the payment formula, so add $2,000 to $5,000 per $100,000 of price to the cash needed at closing.
Yes, when the loan carries no prepayment penalty. An extra $100 a month on an $80,000 loan at 8.5% ends a 180-month term after 145 months and saves $13,897.12 in interest.
Improved lots start at 15% down, and raw land runs 30% to 50%. The Farm Service Agency (FSA) down payment program asks for only 5% from qualifying beginning and socially disadvantaged farmers.