Estimate the monthly payment on a USDA guaranteed home loan. The calculator adds the 1% upfront guarantee fee to the loan (or lets you pay it at closing), charges the 0.35% annual fee on the average balance, adds tax, insurance and HOA, and checks your ratios against the 29% / 41% USDA guidelines.
Last updated:
Home & loan
$
$
USDA allows 0% down; term is 30-year fixed
% / yr
USDA guarantee fees (FY 2026)
%
% / yr
Taxes, insurance & HOA
$/ yr
$/ yr
$/ mo
Debt-to-income check (optional)
$
$
Car, student loans, card minimums
Enter your values to see the result.
Advertisement
Advertisement
How to use the USDA Loan Calculator
Enter the home price and any down payment (0 is allowed).
Enter your interest rate. USDA guaranteed loans are 30-year fixed.
Check the guarantee fees (1% upfront, 0.35% annual) and whether the upfront fee is financed.
Add property tax, insurance and HOA, plus income and debts for the ratio check.
Press Calculate to see the monthly payment, fees, total loan and the yearly schedule.
How a USDA loan payment is calculated
Base loan = home price − down payment (USDA allows 0% down).
Upfront guarantee fee = base loan × 1%. When financed, total loan = base loan × 1.01.
Principal & interest = L × r(1 + r)360 ÷ ((1 + r)360 − 1), with r = annual rate ÷ 12.
Annual fee = 0.35% × the average scheduled balance for the year, ÷ 12 for the monthly amount.
Example: a $250,000 home with 0% down. The 1% fee is $2,500, so the loan is $252,500. At 6.25% for 30 years P&I is $1,554.69, the first-year annual fee is about $73.25 a month, and with $2,800 tax and $1,400 insurance a year the total is about $1,977.94.
USDA fees by home price (0% down, 6.25%, 30 years)
Home price
Upfront fee (1%)
Loan with fee
P&I
Annual fee, year 1
$150,000
$1,500
$151,500
$932.81
$43.95 / mo
$200,000
$2,000
$202,000
$1,243.75
$58.60 / mo
$250,000
$2,500
$252,500
$1,554.69
$73.25 / mo
$300,000
$3,000
$303,000
$1,865.62
$87.91 / mo
$350,000
$3,500
$353,500
$2,176.56
$102.56 / mo
Fee rates shown are the USDA Single Family Housing Guaranteed Loan Program rates (1% upfront, 0.35% annual) in effect since October 1, 2016 and still current for fiscal year 2026. Some lenders compute the first-year fee on the full loan amount, which adds a few cents a month.
USDA loan requirements at a glance
Location: the home must be in a USDA-eligible area (most rural and many suburban places qualify).
Income: household income up to 115% of the area median income.
Occupancy: primary residence only; no investment or vacation homes.
Ratios: about 29% of gross income for housing and 41% for total debt, with flexibility for strong files.
Term: 30-year fixed rate; no prepayment penalty and no private mortgage insurance.
Frequently asked questions
What are the USDA loan fees?
USDA guaranteed loans charge an upfront guarantee fee of 1% of the loan and an annual fee of 0.35% of the average scheduled unpaid balance, paid monthly. These rates have applied since fiscal year 2017 and remain in place for fiscal year 2026; check USDA Rural Development for any change and edit the rates in the calculator.
How is the USDA annual fee calculated?
The annual fee is 0.35% of the average scheduled principal balance for the coming year, divided into 12 monthly payments. On a $252,500 loan at 6.25% the year-one average balance is about $251,160, so the fee is roughly $73.25 a month, and it falls slightly each year as the balance drops.
Can I finance the USDA upfront guarantee fee?
Yes. Most borrowers add the 1% fee to the loan, and USDA allows the total loan to exceed the appraised value by the amount of the fee. A $250,000 base loan becomes $252,500. You can also pay it at closing, or the seller can pay it as a concession.
Does a USDA loan have PMI?
No. USDA loans do not use private mortgage insurance. The annual fee plays a similar role and lasts for the life of the loan, but at 0.35% it is usually cheaper than FHA mortgage insurance or PMI on a low down payment loan.
Who qualifies for a USDA loan?
The home must be in a USDA-eligible rural or suburban area, it must be your primary residence, and household income must not exceed 115% of the area median income. Lenders also review credit and debt-to-income ratios; 29% for housing and 41% for total debt are the standard guidelines.
What is the USDA loan term?
USDA guaranteed loans are 30-year fixed-rate mortgages. The USDA direct loan program for very low and low-income applicants can run 33 or 38 years and uses payment assistance instead of these fees, so this calculator models the guaranteed program.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.