Finance Tools
Farmland Mortgage Affordability Calculator
Estimate whether you can afford a farmland mortgage based on income, expenses, down payment, interest rate, and term. Shows payment, DTI-style ratios, and a coverage view with stress tests.
This farmland mortgage affordability tool estimates your monthly payment and evaluates affordability using DTI-style ratios and a farm-friendly coverage view (surplus ÷ total annual debt). It also includes simple stress tests.
Seed/feed, fertilizer, fuel, labor, repairs, utilities, etc.
Equipment loans, operating notes, other obligations.
Debt-to-income (total debt ÷ income)
18.3%
Mortgage share of income: 14.3%
Coverage (surplus ÷ total debt)
1.64
Rule of thumb: coverage below ~1.2 can be tight in volatile years.
Example: +1.5 means 6.5% → 8.0%.
How it works
- Monthly payment uses a standard amortization formula.
- DTI (%) = total annual debt payments ÷ annual income.
- Coverage = (income − operating expenses − tax − insurance) ÷ total annual debt.
- Stress tests help you see sensitivity to rates and income volatility.
FAQ
Why include operating expenses?
Farms are cash-flow businesses. Income alone is misleading if costs consume most of it.
Is “coverage” the same as DSCR?
Not exactly. DSCR is typically based on net operating income and specific lender definitions. This is a fast decision-grade proxy.
How to use this farmland mortgage affordability calculator
- Enter farmland price, down payment, interest rate, and loan term.
- Enter your annual income and annual operating expenses.
- Add other annual debt payments if any.
- Review monthly payment, debt-to-income metrics, and coverage (surplus ÷ debt).
- Use stress tests to see what happens if rates rise or income drops.
Example
Example affordability check:
- Price: $500,000, down payment: $100,000, rate: 6.5%, term: 20 years
- Annual income: $250,000, operating expenses: $170,000, other debt: $10,000
- Outputs: monthly payment, total annual debt, DTI %, coverage, stress tests
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- Debt-to-Income (DTI) Ratio Calculator
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