Monthly payment, balloon and total interest for buying land
Updated 2026-10-02
Enter the price of the land, your down payment, the rate and the term to see the monthly payment, the total interest and the cash you need at closing. If the lender quotes a balloon (a long amortization with the balance due early), add the balloon year to see what will be due. Land loan terms vary widely by lender, so use the rate and terms from your own quote. Planning to build? Try the construction loan calculator.
The land and the loan
Your land loan
Monthly payment
$764.52
principal and interest on $80,000
Down payment
$20,000
cash to close: $20,000
Balloon due
None
fully paid off after 15 years
Total interest
$57,614
total paid $137,614
Same loan, different terms
Term
Monthly payment
Total interest
5 years
$1,622.11
$17,327
10 years
$970.62
$36,474
15 years
$764.52
$57,614
20 years
$669.15
$80,596
30 years
$587.01
$131,324
Estimates for planning, not a loan offer or financial advice. Every rate and cost here is a number you enter or an example you can change; confirm figures with your lender.
How the land loan payment is calculated
Loan = Price − Down payment Payment = Loan × r ÷ (1 − (1 + r)−n)
r is the annual interest rate ÷ 12 and n is the amortization term in months. With a balloon, the payment is still figured on the full amortization term, and the balloon is the balance left after the balloon date: Loan × (1 + r)k − Payment × ((1 + r)k − 1) ÷ r, where k is the number of payments made before it is due.
Worked example
A $100,000 parcel with 20% down needs $20,000 up front and a $80,000 loan. At an example rate of 8% over 15 years the payment is $764.52, and the loan costs $57,614 in interest. Stretch the same loan to 20 years with a 5-year balloon and the payment falls to $669.15, but $70,020 is due after the 60th payment. The lower payment buys time, not a cheaper loan.
What to ask a land lender
Down payment and term. Lenders set these by the type of land (raw, improved with road and utilities, or a buildable lot) and by your plans for it. Get them in writing.
The same way as any fixed-rate loan: payment = loan × r ÷ (1 − (1 + r)^−n), where r is the annual rate ÷ 12 and n is the number of months. On a $100,000 lot with 20% down (a $80,000 loan) at 8% over 15 years, the payment is $764.52 a month. The rate and term in this example are illustrations, not market quotes.
How much is the payment on a $100,000 land loan?
It depends on how much you borrow, the rate and the term. Borrowing $80,000 (20% down on $100,000) at 8% costs $970.62 a month over 10 years, $764.52 over 15 years and $669.15 over 20 years. The table above recalculates for your own numbers.
Why do land loans often have a balloon payment?
Some lenders size the payment on a long amortization but make the balance due after a few years, so they are not locked into a rate for decades on collateral that produces no income. With a 20-year amortization and a 5-year balloon, the example loan's payment drops to $669.15, but $70,020 is due after payment 60. Plan to refinance, build (and move into a construction or mortgage loan) or pay it off by then.
Is a land loan the same as a mortgage?
A land loan is secured by the land, as a mortgage is secured by a house, but lenders treat vacant land as riskier because there is no home on it. Expect each lender to set its own down payment, rate, term and balloon. Ask for the terms in writing and compare the total cost, not just the monthly payment.
Can I use a government loan to buy land?
Farm and ranch land can be financed through the USDA Farm Service Agency's farm ownership loans, which are for eligible farmers and ranchers. Most other buyers use a bank, credit union, farm credit lender or seller financing. If you plan to build a home soon, a construction-to-permanent loan can cover the lot and the build in one loan.