Land Loan Calculator
Land loan payment from price, down payment, rate and term, with an optional balloon: monthly payment, total interest and the balance due. How it works
Use the Land Loan Calculator
About the Land Loan Calculator
An $80,000 land loan ($100,000 price, $20,000 down) at 7.5% over 15 years costs $741.61 a month and $53,489.78 in interest. The land loan calculator uses the standard fixed-rate payment formula and can add a balloon: due after 5 years, the same loan leaves $62,476.73 to pay at once.
Monthly payment per $100,000 borrowed
| Interest rate | 10 years | 15 years | 20 years | 30 years |
|---|---|---|---|---|
| 6% | $1,110.21 | $843.86 | $716.43 | $599.55 |
| 7% | $1,161.08 | $898.83 | $775.30 | $665.30 |
| 8% | $1,213.28 | $955.65 | $836.44 | $733.76 |
| 9% | $1,266.76 | $1,014.27 | $899.73 | $804.62 |
| 10% | $1,321.51 | $1,074.61 | $965.02 | $877.57 |
Principal and interest on a fixed-rate loan with no balloon. Property tax, insurance and fees are not included.
Balloon on $80,000 at 7.5% with a 15-year payment schedule
| Balloon due after | Payments made | Balloon | Interest paid | Total paid |
|---|---|---|---|---|
| 3 years | 36 | $70,279.69 | $16,977.65 | $96,977.65 |
| 5 years | 60 | $62,476.73 | $26,973.33 | $106,973.33 |
| 7 years | 84 | $53,415.22 | $35,710.46 | $115,710.46 |
| 10 years | 120 | $37,010.28 | $46,003.48 | $126,003.48 |
The payment is $741.61 in every case. Total paid includes the balloon. Without a balloon the loan runs 180 payments and the interest is $53,489.78.
Yearly schedule: $80,000 at 7.5%, 15-year payments, balloon after 5 years
| Year | Principal paid | Interest paid | Balance at year end |
|---|---|---|---|
| 1 | $3,001.10 | $5,898.22 | $76,998.90 |
| 2 | $3,234.07 | $5,665.25 | $73,764.83 |
| 3 | $3,485.14 | $5,414.18 | $70,279.69 |
| 4 | $3,755.69 | $5,143.63 | $66,524.00 |
| 5 | $4,047.27 | $4,852.05 | $62,476.73 (balloon due) |
The rows the calculator shows. Without the balloon the schedule runs on to year 15 and ends at $0.00.
Frequently asked questions
- What is the monthly payment on a $100,000 land loan?
- At 8% it is $955.65 over 15 years, $836.44 over 20 years and $733.76 over 30. At 7% over 15 years it is $898.83. Enter the price and down payment so the loan comes to $100,000.
- How does a balloon payment work on a land loan?
- The payment is sized as if the loan ran the full term, but the balance left at the balloon date is due at once. $80,000 at 7.5% on a 15-year schedule costs $741.61 a month; with a balloon after 5 years you make 60 payments and then owe $62,476.73.
- How much down payment do I need for a land loan?
- Usually more than for a house, and more the less developed the land is. A land broker quoted by Bankrate says traditional banks typically want 50% down on raw land, while sellers who finance the sale themselves often ask around 20%. Your lender sets the figure. The calculator shows your down payment as a share of the price: $20,000 on $100,000 is 20%.
- Is a land loan calculated differently from a mortgage?
- The arithmetic is the same fixed-rate formula. The difference is in the terms: Bankrate notes that land loans are usually more expensive than a home purchase mortgage, with higher rates on raw land than on improved land. The calculator does not know the type of land, so the rate you enter carries that difference.
- Does the land loan payment include property tax?
- No. The result is principal and interest only. Property tax, insurance and closing fees are not in the totals, and the down payment is not counted in the total paid.
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