Finance Tools
USDA Subsidy vs Loan Comparison Calculator
Compare the cash impact of receiving a USDA subsidy versus financing the same amount with a loan (payments, interest, and net benefit).
Compare two ways to fund the same amount: USDA subsidy (no repayment) vs loan financing (monthly payments + interest + fees).
Use the subsidy amount (or the amount you’d otherwise finance).
APR assumption.
Length of repayment period.
Origination/closing/admin fees.
USDA subsidy (cash benefit)
$50,000
No repayment required (assumed).
Loan monthly payment
$1,013.82
Over 60 months · Total paid: $60,829
Total interest
$10,829
Fees
$500
Financing cost (interest + fees)
$11,329
Net advantage of subsidy vs taking a loan
$61,329
Computed as: subsidy ($50,000) + avoided financing cost ($11,329).
Tip: If you’re comparing to a partial subsidy, enter the subsidy amount only (not project total cost).
How it works
- Loan payment uses standard amortization (amount, rate, term).
- Total interest = (monthly payment × months) − amount.
- Fees are estimated as a % of the amount.
- Net advantage shows how much cash + avoided financing cost you get by receiving a subsidy instead of borrowing.
FAQ
What if subsidy is delayed or uncertain?
Use a smaller amount (conservative) or model it as partial subsidy only.
Does this include taxes?
No. Some subsidy programs may have tax implications depending on the situation.
Why is “net advantage” so large?
Because it counts both the subsidy cash and the financing cost you avoid by not borrowing.
How to use this usda subsidy vs loan comparison calculator
- Enter the amount you need (or would receive as a subsidy).
- Enter the loan interest rate and term used for financing comparison.
- Optionally include an origination/fees percentage.
- Compare total loan cost vs subsidy benefit and see the net difference.
Example
A farm compares a $50,000 USDA subsidy vs taking a $50,000 loan at 8% for 5 years with 1% fees.
- Subsidy cash benefit = $50,000
- Loan fees = $500, total interest depends on rate/term
- Net advantage shows how much better subsidy is than financing
More tools in Finance Tools
- USDA Farm Loan Payment Calculator
Estimate monthly payment, total payment, and total interest for a USDA farm loan using loan amount, APR, and term.
- FSA Loan Payment Calculator
Estimate monthly payment, total payment, and total interest for a Farm Service Agency (FSA) loan using loan amount, APR, and term.
- USDA Farm Loan Interest Calculator
Estimate total interest cost and monthly payment for a USDA farm loan using loan amount, APR, and term. Includes a quick rate sensitivity table.
- USDA Farm Loan Monthly Payment Estimator
Quickly estimate monthly payments for a USDA farm loan using loan amount, APR, and term. Includes a rate sensitivity range for nearby APR values.