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Finance Calc Kit
Mortgages

Land Loan Payment Calculator

Calculate monthly land loan payments, total interest, and amortization schedule for raw land, unimproved, or improved property purchases.

Land loan details

$
%
%
years

Estimated monthly payment

$889.93

$96,000.00 loan over 15 years

Down payment

$24,000.00

20.0% of land price

Loan principal

$96,000.00

Total interest

$64,187.74

Total payments

$160,187.74

Payment schedule

Year-by-year totals. Open a year to see each month.

PeriodPaymentPrincipalInterestBalance
$10,679.18$3,601.31$7,077.88$92,398.69
$10,679.18$3,880.89$6,798.30$88,517.81
$10,679.18$4,182.17$6,497.01$84,335.64
$10,679.18$4,506.84$6,172.34$79,828.80
$10,679.18$4,856.72$5,822.46$74,972.08
$10,679.18$5,233.76$5,445.42$69,738.32
$10,679.18$5,640.07$5,039.11$64,098.25
$10,679.18$6,077.92$4,601.26$58,020.33
$10,679.18$6,549.77$4,129.42$51,470.57
$10,679.18$7,058.24$3,620.94$44,412.32
$10,679.18$7,606.19$3,072.99$36,806.13
$10,679.18$8,196.68$2,482.50$28,609.45
$10,679.18$8,833.01$1,846.17$19,776.44
$10,679.18$9,518.74$1,160.44$10,257.70
$10,679.18$10,257.70$421.48$0.00
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Financing raw or undeveloped land

Land loans finance the purchase of vacant, raw, or undeveloped property. Lenders often require larger down payments and charge higher rates than standard home mortgages because land is harder to resell and carries more risk when no structure secures the loan.

This calculator estimates your monthly land loan payment, total interest, and amortization schedule. Once you plan to build, compare construction financing with the mortgage calculator for the finished home. For general loan payment math, see the EMI calculator.

Land loan payment formula

After subtracting your down payment from the land price, the loan is amortized over the term using the standard fixed-rate formula:

Where P is the loan amount after down payment, r is the monthly interest rate, and n is the number of months.

Worked example

A $120,000 land purchase with 20% down ($24,000) leaves a $96,000 loan at 7.5% over 15 years. The monthly payment is about $889.93, with total interest of roughly $64,187 over the life of the loan.

Frequently asked questions

How is a land loan different from a mortgage?
Land loans finance vacant property without a home on it. Lenders typically require 20% to 50% down, shorter terms, and higher rates than residential mortgages because the collateral is harder to liquidate.
What down payment do land lenders require?
Down payment requirements vary from 20% to 50% depending on the land type, location, and your credit profile. Raw undeveloped land usually requires the largest down payment.
Can I use a land loan to build a home?
Some borrowers use a land loan first, then convert to a construction loan or construction-to-permanent mortgage when building begins. Terms and availability vary by lender.
Are land loan terms shorter than mortgages?
Yes. Land loans commonly run 5 to 20 years, while home mortgages often extend to 30 years. Shorter terms mean higher monthly payments but less total interest.
Are my inputs stored on a server?
No. All calculations run in your browser. The URL updates as you change inputs so you can share your scenario.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.