# Land Loan Calculator

URL: https://speedycalculator.com/calculators/finance/land-loan/
Last updated: 2026-10-25

> The land loan calculator works out the payment on a loan to buy land – raw, unimproved or improved lots – from the land price, down payment, interest rate, term and payment frequency, with the total interest.

## Inputs

- Land value
- Down payment (%)
- Interest rate (%)
- Loan term (years, months)
- Payment frequency
- Compounding frequency

## Results

- Loan amount
- Number of payments
- Payment per period
- Total interest
- Total cost (down payment + payments)

## Formula

```
Loan = land price − down payment
Payment = pmt(rate per period, number of payments, loan)
Total interest = payment × n − loan
```

## Explanation

Land is riskier for lenders than a house, so land loans usually need 20–50% down, carry higher rates and shorter terms. Seller financing and USDA rural development loans are alternatives.

### How to use the Land Loan Calculator

- **Land value**
- **Down payment**
- **Interest rate**
- **Loan term**
- **Payment frequency**
- **Compounding frequency**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the land price, down payment, interest rate, term and payment frequency.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

### Inputs explained

FieldWhat to enterLand valueAmount in your currencyDown paymentIn %Interest rateIn %Loan termUnits: years, monthsPayment frequencyChoose one: Monthly, Semi-monthly, Bi-weekly, Weekly …Compounding frequencyChoose one: Yearly, Semi-annually, Quarterly, Monthly …

### What each result means

- **Loan amount** = [Land value]×(1 - [Down payment]÷100)
- **Number of payments** = round([Loan term]×[Payment frequency])
- **Payment per period** = pmt([Periodic rate], [Number of payments], [Loan amount])
- **Total interest** = [Payment per period]×[Number of payments] - [Loan amount]
- **Total cost (down payment + payments)** = [Land value]×[Down payment]÷100 + [Payment per period]×[Number of payments]

### Example values

How the main result changes when **Land value** changes and everything else stays at the example values above:

Land valuePayment per period60,000413.5990,000620.39120,000827.18150,0001,033.98180,0001,240.77240,0001,654.36

## Worked example

Inputs — Land value: $120,000; Down payment: 30 %; Interest rate: 8.5 %; Loan term: 15 years; Payment frequency: Monthly; Compounding frequency: Monthly.

Results — Loan amount = $84,000.00; Number of payments = 180; **Payment per period = $827.18**; Total interest = $64,892.62; Total cost (down payment + payments) = $184,892.62.

## FAQ

**How much down payment for a land loan?**
Typically 20% for improved land and up to 50% for raw land.

**Are land loan rates higher?**
Yes, usually 1–3 points above mortgage rates.

**Can I build on land bought with a land loan?**
Yes – many buyers later convert to a construction loan.

**What formula does the Land Loan Calculator use?**
Loan = land price − down payment.