# What will my USDA loan payment be?

Computes the monthly payment on a 30-year USDA guaranteed home loan with the 1% upfront guarantee fee and the 0.35% annual fee, plus property tax and insurance, with the full schedule.

- Page: https://www.acalculator.org/finance/usda-loan-calculator
- JSON spec: https://www.acalculator.org/finance/usda-loan-calculator.json
- Version: 4d566b50e165

## Default answer

Example with the default inputs (Home price $250,000.00, Down payment $0.00, Interest rate 6.25%, Upfront guarantee fee Add to the loan, Property tax (per year) 1.1%, Home insurance $1,500.00): A USDA loan of $252,525.25 at 6.25% costs $1,982.27 a month, with $73.26 of annual fee.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| price | Home price | The price of the home (USDA lends up to the appraised value, plus the financed fee). |
| down | Down payment | Cash you pay toward the price. USDA loans need no down payment. |
| rate | Interest rate | The fixed yearly rate; the monthly rate is this ÷ 12. |
| finance | Upfront guarantee fee | Add the 1% guarantee fee to the loan, or pay it in cash at closing. |
| tax | Property tax (per year) | The yearly property tax as a percent of the home price. |
| insurance | Home insurance | The homeowners insurance premium. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| monthly | Monthly payment | The first month’s total: principal and interest, the annual fee, property tax and insurance. |
| pi | Principal and interest | The level monthly payment on the loan. |
| fee | Annual fee a month | The first year’s USDA annual fee divided by 12. |
| taxes | Property tax | Property tax for one month. |
| insurance | Home insurance | Home insurance for one month. |
| upfront | Upfront guarantee fee | 1% of the total loan; when added to the loan, the total loan is the base loan ÷ 0.99. |
| loan | Total loan amount | The price minus the down payment, plus the upfront fee when it is added to the loan. |
| feeTotal | Total annual fees | All the annual fee over 30 years. |
| interest | Total interest | All the interest over 30 years. |

## Method

Total loan = (price − down) ÷ 0.99 when the 1% fee is financed; payment = L × r ÷ (1 − (1 + r)^−360); annual fee each loan year = 0.35% × the average of its 12 scheduled balances, paid in 12 parts; tax and insurance are added.

## Assumptions

- USDA fees for fiscal year 2026: 1% upfront, 0.35% a year (unchanged since fiscal year 2017).
- A 30-year fixed-rate guaranteed loan; interest is charged monthly at the rate ÷ 12.
- County income limits and property eligibility are not checked: see the USDA eligibility site.
- Tax and insurance stay the same; closing costs are not included; nothing is rounded between months.

## Worked examples

1. price = $100,000.00, down = $0.00, rate = 6%, finance = loan gives loan = $101,010.10, upfront = $1,010.10. Source: USDA Handbook HB-1-3555 chapter 16 example (https://www.rd.usda.gov/sites/default/files/3555-1chapter16.pdf): $100,000 ÷ 0.99 = $101,010.10 total loan.
2. price = $100,000.00, down = $0.00, rate = 6%, finance = cash gives loan = $100,000.00, upfront = $1,000.00. Source: USDA Handbook HB-1-3555 chapter 16 example: $100,000 × 1% = $1,000.00 upfront fee paid at closing.
3. price = $250,000.00, down = $0.00, rate = 0%, finance = cash, tax = 0%, insurance = $0.00 gives upfront = $2,500.00, pi = $694.44, fee = $71.80, monthly = $766.25. Source: USDA FY 2026 fees (https://content.govdelivery.com/accounts/USDARD/bulletins/3f192a6): at 0% the balance falls $694.44 a month.
4. price = $300,000.00, down = $10,000.00, rate = 6.5%, finance = loan, tax = 0%, insurance = $0.00 gives loan = $292,929.29, upfront = $2,929.29, pi = $1,851.51, fee = $85.01. Source: USDA Handbook HB-1-3555 chapter 16 (financed fee: base ÷ 0.99) and FY 2026 fees.

## FAQ

### What fees does a USDA loan have?

A USDA guaranteed loan has an upfront guarantee fee of 1% of the loan and an annual fee of 0.35% of the average scheduled balance, paid monthly. These rates have applied since fiscal year 2017 and were confirmed for fiscal year 2026.

### Can I add the guarantee fee to the loan?

Yes. The loan can be more than the appraised value by the financed fee. Because the fee is 1% of the total loan, the total is the base loan ÷ 0.99: a $100,000 base gives a $101,010.10 loan and a $1,010.10 fee.

### How is the USDA annual fee worked out?

For each loan year, 0.35% of the average of that year’s 12 scheduled balances, split into 12 monthly payments. On a $250,000 loan at 0% the first year’s fee is $861.63, or $71.80 a month. It falls each year as the balance falls.

### Does this check if I qualify?

No. USDA loans have household income limits by county and need a home in an eligible rural area. Check both on the USDA eligibility site (eligibility.sc.egov.usda.gov).

## Sources

- USDA Rural Development, Fiscal Year 2026 Conditional Commitment Notice (1.00% upfront, 0.35% annual): https://content.govdelivery.com/accounts/USDARD/bulletins/3f192a6
- USDA Rural Development, HB-1-3555 Chapter 16 (upfront fee examples): https://www.rd.usda.gov/sites/default/files/3555-1chapter16.pdf
- Code of Federal Regulations, 7 CFR 3555.107(g) and (h) (guarantee fee and annual fee): https://www.ecfr.gov/current/title-7/section-3555.107