Land Loan Calculator: Monthly Payment & Total Interest
Work out the monthly payment and total interest on a loan to buy vacant land, where rates run higher than on a home mortgage.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year amortization schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly payment | Total interest | Total of payments |
|---|---|---|---|
| $80k · 9.5% · 15-year | $835.38 | $70,368.35 | $150,368.35 |
| $40k · 10.0% · 10-year | $528.60 | $23,432.35 | $63,432.35 |
| $150k · 8.5% · 20-year | $1,301.73 | $162,416.36 | $312,416.36 |
| $25k · 11.0% · 7-year | $428.06 | $10,957.12 | $35,957.12 |
How This Calculator Works
Enter the loan amount — the land price after your down payment — the APR, and the term. The calculator applies the fixed-rate amortization formula to produce one constant monthly payment and a year-by-year schedule of how the balance falls.
The Formula
Fixed-Rate Amortization
P = loan amount, r = monthly rate (APR ÷ 12), n = number of monthly payments
Worked Example
A $80,000 land loan at 9.5% APR over 15 years gives a monthly payment of about $835. Across the loan you repay roughly $150,370, so interest adds close to $70,370 to the amount borrowed.
Key Insight
Raw land is harder for a lender to value and resell than a house, so land loans carry higher rates, larger down payments, and shorter terms. Improved lots with road and utility access are usually financed on better terms than undeveloped land.
Frequently Asked Questions
Why are land loans more expensive than mortgages?
Vacant land is harder to value and slower to resell if a lender has to foreclose. That added risk shows up as higher rates, bigger down payments, and shorter terms.
What down payment does a land loan need?
Land loans typically require a larger down payment than home mortgages — often 20% to 50%, depending on whether the lot is improved or raw, undeveloped land.
What is the difference between raw and improved land?
Raw land has no utilities, road access, or grading. Improved land has some or all of these, which makes it easier to build on and to finance on better terms.
Do land loans have balloon payments?
Some do. A balloon loan has low payments then one large final payment. This calculator models a fully amortizing loan, so confirm your loan's structure with the lender.
Can I roll a land loan into a construction loan?
Often yes. If you plan to build, some lenders combine the land purchase and construction into a single loan, which can be cheaper than financing the land alone.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources. The starting values for interest rate are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
Payments use the standard fixed-rate amortization formula. The calculator assumes a fully amortizing fixed-rate loan; some land loans instead carry a balloon payment, which this does not model.
Written by Ugo Candido · Last updated May 17, 2026.