USDA Loan Calculator
Calculate a USDA guaranteed home loan payment with the 1% upfront guarantee fee and 0.35% annual fee, plus tax, insurance and a yearly schedule.
The USDA Single Family Housing Guaranteed Loan program helps low- and moderate-income buyers purchase in eligible rural and suburban areas with no down payment. Instead of private mortgage insurance, the borrower pays an upfront guarantee fee and an annual fee collected monthly. This calculator estimates both, including the fee on the total loan when the upfront fee is financed.
How to use this tool
- Enter the home price and any down payment.
- Enter the interest rate on the 30-year fixed loan.
- Keep the current USDA fees (1.00% and 0.35%) or change them if your lender quotes different ones.
- Choose whether to finance the upfront fee, then add property tax, insurance and HOA dues.
Formula
Financed loan = (price − down) ÷ (1 − upfront fee ÷ 100); M = L × r / (1 − (1 + r)^−360); monthly annual fee = average balance × 0.35% ÷ 12
r is the yearly rate ÷ 12 ÷ 100. The annual fee is charged on the average scheduled unpaid balance of each loan year, so it shrinks slowly as you pay the loan down.
Example
A $250,000 home with no down payment and the full 1% fee financed has a loan of $250,000 ÷ 0.99 = $252,525.25, including a $2,525.25 fee. At 6.25% for 30 years, principal and interest are about $1,554.84. The first-year annual fee adds about $73.26 a month, for $1,628.10. With $2,500 yearly property tax and $1,400 insurance, the total is about $1,953.10.
Frequently asked questions
Who qualifies for a USDA loan?
The home must be in a USDA-eligible area and household income generally cannot exceed 115% of the area median income. Check both on the USDA eligibility website before applying.
Does the USDA annual fee ever go away?
No. Unlike some FHA or conventional mortgage insurance, the USDA annual fee lasts for the life of the loan. Refinancing into a different loan type is the only way to drop it.
Can the loan be more than the home is worth?
Yes, by the amount of the financed upfront fee. That is why a 0% down USDA loan usually starts slightly above the purchase price.
Do USDA fees change?
USDA sets them each fiscal year. For FY 2027, which runs from October 1, 2026 to September 30, 2027, they are 1.00% upfront and 0.35% annual.
Sources
This tool gives an estimate for general information only. It is not financial, tax, legal or medical advice — check with a qualified professional before you rely on the result.
Last updated: 2026