USDA Loan Calculator 2026
USDA allows 0% — that is the point of the program
Guarantee fee ratesprefilled from USDA — edit if your lender quotes differently
Prefilled: 1.00% upfront and 0.35% a year — USDA SFHGLP fee schedule (fiscal-year notice), checked 2026-10-22.
Total monthly payment
$2,453.71
- Loan amount (fee financed)
- $303,025
- Upfront guarantee fee(1.00% · USDA SFHGLP fee schedule (fiscal-year notice))
- $3,000
- Technology fee
- $25
- Principal & interest
- $1,915.32
- Annual guarantee fee, first month(0.35% of the balance)
- $88.38
- Property tax
- $300.00
- Insurance
- $150.00
- Guarantee fee over the full term(averages $57.81 a month)
- $20,811
- Total interest
- $386,492
Down payment: what each 1% buys
| Down | Loan | Monthly | Fee total |
|---|---|---|---|
| $0 (0%) | $303,025 | $2,453.71 | $20,811 |
| $9,000 (3%) | $293,935 | $2,393.60 | $20,187 |
| $15,000 (5%) | $287,875 | $2,353.53 | $19,771 |
| $30,000 (10%) | $272,725 | $2,253.35 | $18,730 |
| $60,000 (20%) | $242,425 | $2,053.00 | $16,649 |
Every row keeps your rate, term, taxes and insurance — only the down payment moves.
- • The annual guarantee fee is charged on the unpaid balance for the life of the loan — it never drops off the way PMI does at 78% LTV.
- • With 0% down, the upfront guarantee fee is financed too, so the loan starts slightly above the appraised value (101% financing).
- • USDA loans also require the property to be in an eligible rural area and the household to meet income limits — both are checked on the USDA site, not here.
With no down payment the guarantee fee rides along for 30 years. Putting $60,000 down drops the monthly payment to $2,053.00 and the lifetime fee to $16,649. Comparing programs? The FHA loan calculator prices the 3.5%-down route, and the VA loan calculator has no monthly insurance at all.
A $300,000 USDA loan at 6.5% with no down payment costs $2,453.71 a month: $1,915.32 of principal and interest on the $303,025 loan (the 1% upfront guarantee fee is financed), $88.38 of annual guarantee fee in the first month, $300 of property tax and $150 of insurance. The guarantee fee declines as the balance drops but never stops — $20,811 over 30 years. Putting 20% down cuts the payment to $2,053.00.
What makes a USDA loan different
USDA guaranteed loans exist for one reason: no down payment. Where FHA wants 3.5% and conventional loans want 3% to 20%, the USDA Rural Development program finances 100% of the appraised value — and will even finance the upfront guarantee fee on top of it, which is why the loan above starts at $303,025 on a $300,000 house.
The trade is the guarantee fee, which replaces mortgage insurance:
upfront guarantee fee 1.00% of the loan amount, financed into the loan
annual guarantee fee 0.35% a year, charged on the unpaid principal balance
technology fee $25, collected once
term 30-year fixed, rate negotiated with the lender
The annual fee is the part borrowers misread. It is charged on the declining balance, so it starts at $88.38 a month here and falls every month — but unlike private mortgage insurance, it does not switch off when you reach 78% loan-to-value. It runs for the life of the loan, which is why the lifetime total ($20,811) matters more than the first month's line.
Guarantee fee versus the alternatives
| Program | Cash to close | Upfront fee | Monthly insurance | Does it end? |
|---|---|---|---|---|
| USDA guaranteed | 0% down | 1.00%, financed | 0.35% of the balance | No — runs for the full term |
| FHA | 3.5% down | 1.75%, financed | 0.55% a year | After 11 years if the starting LTV was 90% or less |
| Conventional with PMI | 3–20% down | none | varies with LTV and score | Automatically at 78% LTV, or on request at 80% |
| VA | 0% down | funding fee | none at all | — |
Read the monthly number and the end date together. USDA's 0.35% is the lowest monthly rate in that table, but it is also the only one that never leaves.
What a down payment buys here
USDA does not require a down payment, and there is no penalty for making one. The saving is close to linear: every extra $1,000 down cuts the monthly payment by about $6.68 at 6.5% on 30 years. That $1,000 retires $1,010 of balance, because the 1% upfront fee is financed on top of it — so $6.38 of the drop is principal and interest no longer owed, and roughly $0.29 is annual guarantee fee you stop paying. Going from $9,000 down to $10,000 down is worth the same $6.68 as going from nothing to $1,000; there is no threshold, no discount for a larger check.
Two numbers make the trade easy to price:
- $0 to 20% down costs $60,000 of cash and buys $400.71 a month, plus roughly $4,162 of guarantee fee over the full term — about 7 cents of lifetime fee saved per dollar down.
- The fee never switches off. A down payment only shrinks the balance the 0.35% is charged on; it still runs for all 30 years at every level. At 20% down the loan is still paying $16,649 of guarantee fee.
The honest comparison is what else that $60,000 could do — reserves, repairs, moving costs — which is why the monthly difference matters more than the lifetime fee. Open the down payment table above to re-price all five levels with your own rate, term, taxes and insurance.
What this calculator does not check
Two USDA requirements live outside the arithmetic:
- Location. The property must sit in an eligible rural area. Large parts of the country qualify, including many suburban counties, but the map is address-specific and changes.
- Household income. The program has income limits by county and household size. Exceeding them does not disqualify the loan automatically in every case, but it changes what is available.
Both are checked on the USDA site or by your lender. This page prices the loan, not your eligibility.
How to use this calculator
- Enter the home price and your down payment percentage — 0% is a valid answer here.
- Set the interest rate, term, annual property tax and insurance.
- Open the fee rates only if your lender quotes something different from the USDA schedule; the result line then reads your input.
- Read the total monthly payment, then the monthly guarantee fee and the lifetime fee total.
- Open the down payment table to see what each level of cash does to the payment and the fee.
Frequently asked questions
Does a USDA loan really require no down payment?
Yes. The guaranteed program finances 100% of the appraised value, and the 1% upfront guarantee fee can be financed too, which is why the loan can start slightly above the home's value. Closing costs and prepaid items are still due at signing unless the seller covers them.
How long does the annual fee last?
For the life of the loan. It is charged on the unpaid principal balance, so the monthly amount declines as you pay down, but unlike PMI there is no automatic cancellation point — the way to end it is to refinance or pay the loan off.
Is the USDA fee cheaper than FHA mortgage insurance?
Per month, yes: 0.35% of the balance versus 0.55% for a typical FHA loan. Over the full term the comparison depends on how long you keep the loan, because FHA's MIP ends after 11 years when the starting LTV was 90% or less.
Can I put money down on a USDA loan?
Yes, and nothing in the program penalizes it. A down payment reduces the loan, the monthly payment, the guarantee fee and the total interest — the trade-off is cash you no longer have for reserves, repairs or moving costs.
Who qualifies for a USDA loan?
The property must be in an eligible rural area and the household must be within the county income limits, and the lender must approve your credit and repayment ability. There is no first-time buyer requirement, and the loan is for a primary residence only.
Is the guarantee fee tax deductible?
Mortgage insurance treatment changes with tax law and sometimes expires mid-year, and guarantee fees are not always treated the same way. Ask a tax professional about your specific year rather than assuming the deduction applies.
Data sources: Guarantee fee structure follows USDA Rural Development's Single Family Housing Guaranteed Loan Program — a 1.00% upfront guarantee fee, a $25 technology fee, and a 0.35% annual fee on the unpaid principal balance, checked against USDA materials on 2026-10-22. Fees are set by fiscal-year notice and can change, so both rates are prefilled but editable; edited results are marked as your input. Property tax and insurance are your own figures. Location eligibility and county income limits are set by USDA and are not modeled here. All calculations run in your browser. Compare programs with the FHA loan calculator, the VA loan calculator or the conventional PMI calculator.