Land Loan Calculator
Estimate the monthly payment, total interest, cash needed, and optional balloon balance for a land purchase. Adjust the down payment, term, rate, costs, and extra principal to compare a financing plan.
- Monthly payment
- Balloon option
- Amortization schedule
Estimate your land financing
Use the terms from a lender quote when available. The calculation assumes a fixed interest rate and equal monthly principal-and-interest payments.
Monthly loan payment
Annual amortization schedule
Scheduled principal and interest by loan year.
| Year | Starting balance | Payments | Principal | Interest | Ending balance |
|---|---|---|---|---|---|
| Enter loan terms to create a schedule. | |||||
How this land loan calculator works
The calculator subtracts the down payment from the purchase price to find the amount financed. It then uses the fixed-rate amortization formula to estimate the monthly principal-and-interest payment. Closing costs are kept separate because the form assumes they are paid at closing instead of added to the loan.
Loan amount
Purchase price − down payment
The down payment may be entered as a percentage of the price or as a dollar amount.
Monthly principal and interest
P × [r(1 + r)n] ÷ [(1 + r)n − 1]
P is principal, r is the monthly rate, and n is the number of monthly payments.
Example land loan with a balloon payment
For land priced at $150,000 with 25% down, the loan amount is $112,500. At a fixed 8.25% rate amortized over 20 years, the estimated monthly principal-and-interest payment is $958.57.
If the agreement requires a balloon after five years, the estimated remaining balance after 60 payments is $98,807.75. That balance does not disappear; it generally must be paid, refinanced, or otherwise handled under the loan agreement.
What the monthly result includes
The primary result includes principal, interest, and any extra principal entered in the form. It does not include property taxes, insurance, association dues, servicing charges, utilities, site work, or other ownership costs. The required P&I result shows the scheduled loan payment before optional extra principal.
Amortization period and balloon term are different
These two time periods can match, but a balloon land loan often uses a longer amortization schedule to set the monthly payment and a shorter contract term for the remaining balance.
Amortization period
This determines how the regular payment is calculated. A longer period usually lowers the payment but can increase interest over time.
Balloon term
This is when the unpaid balance becomes due. The balloon amount may remain large because the regular payments were based on a longer schedule.
Extra principal
Additional principal can reduce interest and the future balance, but the lender must allow it and apply it as expected.
What to compare before choosing a land loan
Rate, APR, and fees
The note rate drives this calculator, while APR may reflect certain financing charges. Compare the written rate, APR, origination fees, appraisal costs, and other lender charges.
Down-payment requirement
A larger down payment lowers the amount financed and monthly payment, but it also increases the cash required at closing. Keep funds available for due diligence and property work.
Balloon and refinance risk
Do not evaluate a balloon loan by the regular payment alone. Review the projected lump sum and have a realistic plan for paying or refinancing it when due.
Prepayment rules
Confirm whether extra principal is allowed, whether a penalty applies, and how the lender credits additional payments before relying on the extra-payment estimate.
Property due diligence
Financing is only one part of a land purchase. Review legal access, title, zoning, utilities, surveys, environmental limits, flood exposure, and intended-use restrictions.
Costs beyond the loan
Budget separately for taxes, insurance, maintenance, road access, wells, septic systems, power, permits, clearing, grading, and construction when they apply.
This calculator provides a general estimate, not a loan offer, approval, appraisal, financial recommendation, or legal advice. It assumes a fixed rate with monthly compounding and payments. Actual lender calculations can differ because of rounding, payment timing, day-count conventions, fees, rate changes, or contract terms. Verify all figures with the lender and review the complete agreement before committing funds.