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Land Loan Calculator
Payment, total interest and full amortization for raw land, a building lot or farmland - including the balloon most land loans end with. Everything runs in your browser.
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Estimated monthly payment
Amount financed$0
Balloon due at maturity$0
Total interest$0
Total of all payments$0
Paid off in-
Interest saved with extra payment$0
Paid off sooner by-
A balloon means the loan does not pay itself off. On the maturity date the remaining balance is due in one payment — you refinance it, sell the land, or pay cash.
Estimate only. Your actual rate depends on your credit, the lender, and whether the parcel is raw, unimproved or an improved lot. Closing costs vary by state and county.
Same loan, different terms
Lenders quote you a payment. This is what each term actually costs on your numbers. Dealers often quote a longer term at a lower rate — it still costs more. Set your own rate per term if you were quoted different ones.
| Term | Rate | Monthly payment | Total interest | vs your term |
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Uses your amount financed. Change a rate to match a specific quote.
Amortization schedule
| Month | Payment | Principal | Interest | Balance |
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Your logo stays on this device. It is never uploaded anywhere — it is only drawn onto your printout.
Updated September 2026
Land loans are not mortgages. Lenders treat bare ground as the riskiest real estate there is, so they ask for 20% to 50% down, charge 1 to 3 points above mortgage rates, and very often write the loan with a balloon — a payment schedule stretched over 15 or 20 years that legally ends in 3, 5 or 10, with the entire remaining balance due that day.
That last part is what catches buyers. On $100,000 at 8% amortized over 20 years, you make $836 payments for ten years — $100,373 handed over — and on the balloon date you still owe $68,941 in one lump. Set the balloon field above to see yours.
Why a land loan costs more than a mortgage
A house is collateral a bank understands: it has a rental value, a resale market and a buyer pool. Bare land has none of that. If you stop paying, the lender is left holding a parcel that may take a year or more to sell and that produces nothing in the meantime. Every term on a land loan — the down payment, the rate, the length and the balloon — exists to shrink that risk.
How much it costs depends mostly on what kind of land you are buying. Lenders sort parcels into three buckets, and the further down the list you go, the harder the terms:
| Type of land | What it means | Down payment | Rate vs mortgage |
|---|---|---|---|
| Improved lot | Road, power, water and sewer at the property line | 20 – 25% | +1 to +1.5 points |
| Unimproved land | Road access, but utilities missing or partial | 25 – 35% | +1.5 to +2.5 points |
| Raw land | No utilities, sometimes no legal road access | 35 – 50% | +2 to +3 points |
Two more things move the terms. A parcel you intend to build on soon is easier to finance than one held for investment, because the lender can see the exit. And acreage matters: many lenders cap the acres they will lend against, or price large rural tracts as agricultural loans instead.
The balloon is the part that surprises people
Most land loans are written with a payment calculated on a long amortization — 15, 20, sometimes 30 years — but a much shorter maturity. The payment looks affordable because it is sized for the long schedule. The loan simply ends before that schedule finishes, and the leftover balance is due in full.
Here is what that looks like on a $100,000 land loan at 8% APR, amortized over 20 years, at four common balloon dates:
| Balloon at | Total you paid in | Principal actually repaid | Balloon still due |
|---|---|---|---|
| 3 years | $30,112 | $6,882 | $93,118 |
| 5 years | $50,186 | $12,474 | $87,526 |
| 7 years | $70,261 | $19,034 | $80,966 |
| 10 years | $100,373 | $31,059 | $68,941 |
Read the ten-year row again: you handed the lender more than the price of the land and still owe over two thirds of it. That is not a trick — it is how amortization works. Early payments are almost all interest, and a balloon ends the loan before the principal-heavy years ever arrive.
None of this makes a balloon a bad deal. It makes it a deadline. You have exactly three ways out on that date: refinance the balance, sell the parcel, or pay cash. If your plan is to build, the usual answer is a construction loan that pays off the land loan. What you cannot do is nothing — a balloon you cannot cover is a default, and the lender takes the land.
How to make a balloon safer
Put an extra amount in the extra-payment field above and watch the balloon shrink — every extra dollar comes straight off the balance you will owe on that date. Beyond that: get the balloon as far out as the lender will write it, ask in writing whether the loan has a renewal or extension option, and start the refinance conversation six months before maturity rather than six weeks.
Typical terms and what each one costs
Amortization length drives the payment; it also drives what the land ends up costing you. On $100,000 at 8%:
| Amortized over | Monthly payment | Total interest |
|---|---|---|
| 5 years | $2,028 | $21,658 |
| 10 years | $1,213 | $45,593 |
| 15 years | $956 | $72,017 |
| 20 years | $836 | $100,746 |
| 30 years | $734 | $164,155 |
The 30-year row is the one to sit with: the interest alone is $164,155 on a $100,000 parcel. Land held for a long time on a long loan can easily cost more in interest than the ground is worth.
Where to actually get a land loan
Most big national banks do not write land loans at all, which is why buyers often assume financing is impossible. It is not — the lenders are just different ones:
- Farm Credit System associations. A national network of member-owned cooperatives that finance rural land, farmland and country homes. They are the single most common source for acreage, they understand parcels a bank will not touch, and they pay patronage dividends back to borrowers.
- Local and community banks, and credit unions. They keep land loans on their own books instead of selling them, so a lender that knows your county can approve a parcel a national underwriter would decline.
- Seller financing. Common on rural land. Terms are negotiable and approval is fast, but balloons are near universal and the rate is usually higher.
- USDA and construction-to-permanent loans. If you are building a primary residence soon, a construction-to-perm loan can roll the land purchase and the build into one closing and skip the balloon entirely.
Because pricing varies so much by lender type, getting two or three quotes matters more on land than on almost any other loan. The spread between a seller-financed deal and a Farm Credit loan on the same parcel is routinely several points.
Closing costs on land
Land closings are cheaper than home closings but not free. Expect a survey if the parcel has never been surveyed or the boundaries are unclear, an appraisal, title work, and recording fees. Some states also charge a transfer or documentary tax as a percentage of the price — that is the transfer tax field above. Put your real numbers in both fields so the amount financed matches what you will actually sign for.
Frequently asked questions
What is a balloon payment on a land loan?
It is the entire remaining balance, due in one payment on the loan's maturity date. Your monthly payment is calculated on a long schedule — often 15 or 20 years — but the loan legally ends in 3 to 10 years. On $100,000 at 8% amortized over 20 years with a 5-year balloon, you would owe about $87,526 on the balloon date after paying $50,186 in monthly payments.
How much down payment do I need for a land loan?
Typically 20–25% for an improved lot with utilities, 25–35% for unimproved land, and 35–50% for raw land with no utilities or road access. Land is the riskiest real estate collateral, so lenders want more of your money in the deal than they would on a house.
Are land loan rates higher than mortgage rates?
Yes, typically 1 to 3 percentage points higher depending on the parcel. An improved lot you plan to build on soon prices closest to a mortgage; raw recreational land held for investment prices furthest away.
Can you get a 30-year land loan?
Rarely as a true 30-year term. Many lenders will amortize a payment over 20 or 30 years but set the loan to mature in 3 to 10 years with a balloon. A genuine long fixed term is most common through Farm Credit associations and on construction-to-permanent loans.
What happens if I cannot pay the balloon?
It is a default, and the lender can foreclose on the land. The three legitimate exits are refinancing the balance into a new loan, selling the parcel, or paying it in cash. Start arranging the exit months before maturity, and ask up front whether the loan carries a renewal option.
Who finances raw land?
Farm Credit System associations, local community banks and credit unions, and sellers. Most large national banks do not write raw-land loans, which is why buyers often believe land cannot be financed at all.
Does this calculator store my numbers?
No. Everything is calculated in your browser and nothing is sent anywhere or saved.