Land Loan Calculator
Estimate payments for raw land, lots, or acreage
Land Loan FAQs
Why are land loan rates higher than mortgages? +
Lenders consider raw land riskier because there's no structure as collateral. Rates are typically 1-3% higher than traditional mortgages.
What’s a typical down payment for land? +
Most lenders require 20-50% down for raw land. Improved lots (with utilities) may qualify for 10-20% down.
The Complete Guide to Land Loans: Calculate Payments & Costs (Free Calculator Tool)
Use our free land loan calculator tool to estimate monthly payments, total interest, and loan amortization. Fast, accurate, and user-friendly—perfect for mortgages, personal loans, auto loans, and more!
“Buying land? Don’t get blindsided by hidden costs—our free land loan calculator reveals exactly what you’ll pay monthly and overall.”
<p>Purchasing land—whether for building a home, farming, or investment—is exciting, but financing it is very different from a traditional mortgage. Land loans come with higher interest rates, shorter terms, and larger down payments—factors that can drastically impact your budget.That’s where our free Land Loan Calculator comes in. Instead of guessing how much you’ll owe each month, this tool does jthe math for you, breaking down:
✔ Monthly payments (principal + interest)
✔ Total loan cost (including interest over time)
✔ Balloon payments (common in land financing)
✔ Amortization schedule (how each payment reduces your balance)
What Is a Land Loan Calculator?
A land loan calculator is a financial tool that helps you estimate:
- Loan amount (after subtracting your down payment) <li>Monthly payments (principal + interest)
- Total interest paid over the loan term
- Balloon payments (if applicable) <li>Amortization schedule (payment breakdown by year/month)
Unlike home loans, land loans are riskier for lenders (no house as collateral), meaning:
🔹 Higher interest rates (typically 6–10%, vs. 4–7% for mortgages)
🔹 Shorter repayment terms (often 5–20 years, vs. 30-year mortgages)
🔹 Larger down payments (usually 20–50%, vs. 3–20% for homes)
✅ Raw land (undeveloped, no utilities)
✅ Improved lots (utilities available)
✅ Agricultural land (farms, ranches)
✅ Commercial land (for business use)
How to Use the Free Land Loan Calculator
Step 1: Enter Land Price
- Input the total purchase price (e.g., $100,000 for a 5-acre lot). </ul>
- Land loans typically require 20–50% down.
- Use the slider to adjust (or type a custom amount).
- Most land loans run 5–20 years (shorter terms = higher payments but less interest). <li>Select from dropdown options.
- Current land loan rates range from 6–10% (varies by lender, credit score, and land type).
- Many land loans have a balloon payment (lump sum due after 5–10 years). <li>Check the box to include this in calculations.
- Monthly payment estimate
- Total interest paid <li>Amortization schedule (first 12 months shown)
- Adjust down payment, loan term, and interest rate in real time. <li>See how changes impact monthly payments instantly.
- View how each payment splits between principal and interest.
- Helps you plan early payoff strategies. </ul>
- Model scenarios where a large lump sum is due later.
- Common in short-term land financing.
- Works seamlessly on phones and tablets. <li>Perfect for on-the-go calculations while visiting properties.
- Free to use—no email or account needed.
- Save/print results for future reference. </ul>
- No Structure = Higher Risk → Lenders charge more.
- Shorter Terms → Banks want faster repayment.
- Larger Down Payments → Reduces lender risk. </ul>
- Raw land: 7–10%
- Improved lots (utilities available): 5–8%
- Farmland: 6–9% (USDA loans may offer lower rates) </ul>
- Rare. Most lenders cap at 15–20 years.
- Exception: If you’re building immediately, some banks offer construction-to-permanent loans (which convert to a 30-year mortgage).
- You pay lower monthly amounts for 5–10 years. <li>At term end, the full remaining balance is due.
- Common in short-term land financing.
- Rates vary by location, lender, and land type. <li>Local banks & credit unions often offer better terms than national banks.
- Yes, but terms vary. Use our Wells Fargo land loan calculator (adjust rates to 6.5–9%).
- Credit score >700? Push for lower rates. <li>Large down payment? Some lenders reduce rates if you put 30%+ down.
- Adding utilities, septic, or road access may qualify you for lower-interest “improved land” loans.
- Local banks > Big banks (often more flexible). <li>Farm Credit Services offers competitive ag land loans.
- Low-interest options if buying farmland or rural property.
- If your loan has one, start saving early for the lump sum. </ul>
- Avg. rate: 6.5–9%
- Local lenders: Central Bank, First Missouri Credit Union </ul>
- Avg. rate: 6–8.5%
- Local lenders: Alabama Farm Credit, Regions Bank
- USDA loans: 4.5–6% (for qualified farmland) </ul>
- Rare, but possible via construction-to-permanent loans.
Step 2: Set Down Payment (%)
Step 3: Choose Loan Term
Step 4: Input Interest Rate
Step 5: Toggle Balloon Payment (Optional)
Step 6: Get Your Results
👉 Try it now Above!
Key Features of the Calculator
1. Interactive Sliders
2. Amortization Schedule
3. Balloon Payment Option
4. Mobile-Friendly Design
5. No Signup Required
Why Land Loans Are Different from Mortgages
| Factor | Land Loans | Traditional Mortgages |
|---|---|---|
| Interest Rates | 6–10% (higher risk) | 4–7% (lower risk) |
| Loan Term | 5–20 years | 15–30 years |
| Down Payment | 20–50% | 3–20% |
| Collateral | Land only (riskier) | Land + home (secure) |
Why the Differences?
Common Land Loan Questions (FAQ)
Q1: What’s the average interest rate for land loans?
Q2: Can I get a 30-year land loan?
Q3: How does a balloon payment work?
Q4: Are land loan rates higher in [Missouri/Alabama/Texas]?
Q5: Does Wells Fargo offer land loans?
Pro Tips for Land Buyers
1. Negotiate Better Rates
2. Improve the Land
3. Compare Lenders
4. Consider USDA Loans (For Rural Land)
5. Plan for Balloon Payments
Land Loan Calculator by State
Our tool works nationwide, but here are state-specific insights:
🔹 Land Loan Calculator Missouri
🔹 Land Loan Calculator Alabama
🔹 Farm Land Loan Calculator
🔹 30-Year Land Mortgage Calculator
Conclusion
Buying land is a big financial commitment, and traditional mortgage calculators won’t give you accurate estimates. Our free Land Loan Calculator removes the guesswork, showing:
✅ Real monthly payments (principal + interest)
✅ Total loan cost (including interest over time)
✅ Balloon payment impact (if applicable)
Still have questions? Drop them below—we’ll help you crunch the numbers!
