USDA guarantee fee calculator
USDA charges two fees in place of mortgage insurance: a one-time 1.0% upfront fee and a 0.35% annual fee. Both were set in 2016 and are unchanged for 2026. Enter your loan amount to see each one in dollars. No interest rate needed, this is pure program math.
What the fees pay for
The guarantee fee is what lets USDA back your loan so a lender can offer 100% financing with no PMI. The 1% upfront fee is a one-time cost you can roll into the loan. The 0.35% annual fee is recalculated on the declining balance each year, so it shrinks slightly over time as you pay the loan down. Together they are cheaper than FHA's insurance on an equivalent loan, which is a large part of why USDA is the lower-cost option for eligible buyers.
Common questions
How much is the USDA upfront guarantee fee?
The upfront guarantee fee is 1.0% of the loan amount, a one-time charge you can finance into the loan. On a $250,000 loan that is $2,500. It was set at 1.0% on October 1, 2016 and remains unchanged for 2026.
How much is the USDA annual fee?
The annual fee is 0.35% of the remaining loan balance, billed monthly across the life of the loan. On a $250,000 loan that starts at roughly $73 a month and declines slowly as you pay the balance down.
Is the USDA fee really 3.5%?
No. The 3.5% figure some pages quote is the statutory maximum USDA is legally allowed to charge, not what borrowers pay. The actual charged fee has been 1.0% upfront and 0.35% annual since 2016.