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
| Field | What to enter |
|---|---|
| Land value | Amount in your currency |
| Down payment | In % |
| Interest rate | In % |
| Loan term | Units: years, months |
| Payment frequency | Choose one: Monthly, Semi-monthly, Bi-weekly, Weekly … |
| Compounding frequency | Choose 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 value | Payment per period |
|---|---|
| 60,000 | 413.59 |
| 90,000 | 620.39 |
| 120,000 | 827.18 |
| 150,000 | 1,033.98 |
| 180,000 | 1,240.77 |
| 240,000 | 1,654.36 |
Formula
Loan = land price − down paymentPayment = pmt(rate per period, number of payments, loan)Total interest = payment × n − loanWorked 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.
Frequently asked questions
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.