How to use the VA mortgage calculator
- Enter the home price.
- Enter your down payment as a percentage. VA loans can have none, but 5% or 10% lowers the funding fee.
- Choose whether this is your first VA loan or you've used the benefit before.
- Tick exempt if you don't pay the funding fee, for example because you receive VA disability compensation.
- Enter the interest rate and choose the loan term.
- Enter property tax and home insurance per year, and any HOA fees per month.
- Leave add the funding fee to the loan ticked to finance it, or untick it to pay it at closing.
How the VA loan payment is calculated
VA loans have no private mortgage insurance, whatever the down payment. Instead, most borrowers pay a one-time funding fee that helps cover the cost of the program. It is a percentage of the loan, set by your down payment and whether you've had a VA loan before.
VA funding fee rates
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
These are the rates for purchase and construction loans published by the U.S. Department of Veterans Affairs, effective April 7, 2023 and still current in 2026. They apply to veterans, active-duty service members and National Guard and Reserve members alike. Only the funding fee can be added to the loan; other closing costs must be paid at closing or covered by seller concessions.
You don't pay the fee if you receive VA compensation for a service-connected disability (or would, if you weren't getting retirement or active-duty pay instead), if you're a surviving spouse receiving Dependency and Indemnity Compensation, if you have a proposed or memorandum rating before closing showing you're eligible for compensation, or if you're an active-duty member who has received the Purple Heart.
Worked example
The defaults are a $350,000 home with no down payment, a first-time VA loan at 6% for 30 years, $3,850 property tax and $1,500 insurance a year:
- Base loan: $350,000
- Funding fee: 2.15% × 350,000 = $7,525, added to the loan for a total of $357,525
- Principal and interest: 357,525 × 0.005 ÷ (1 − 1.005^−360) = $2,143.54
- Tax and insurance: 3,850 ÷ 12 + 1,500 ÷ 12 = $320.83 + $125.00
- Monthly payment: 2,143.54 + 320.83 + 125.00 = $2,589.38
On a subsequent use the fee is 3.3% ($11,550), raising the payment to $2,613.51. Putting 10% down cuts the fee to 1.25% of a $315,000 loan ($3,937.50) and the payment to $2,358.02. If you're exempt, the payment is $2,544.26.
Is the funding fee worth avoiding?
Financing a $7,525 fee at 6% over 30 years adds $45.12 a month and about $8,700 of interest over the full term. A 5% down payment lowers the fee to 1.5%, saving $2,537.50 on this home (2.15% of $350,000 against 1.5% of $332,500), but it ties up $17,500 of cash. Many buyers prefer to keep that money as savings and pay the higher fee. Either way, the lack of PMI usually makes a VA loan cheaper than an FHA or low-down-payment conventional loan; compare them with the FHA loan calculator and the mortgage calculator.
Frequently asked questions
Do VA loans require a down payment?
No. With full entitlement there is no down payment requirement and no VA loan limit, although your lender still checks that you can afford the payment. A down payment of 5% or 10% lowers the funding fee.
Do VA loans have PMI?
No. VA loans never charge private mortgage insurance. On a $350,000 conventional loan, PMI at an illustrative 0.5% a year would cost about $146 a month, so the saving is real. The one-time funding fee takes its place.
Can I get the funding fee refunded?
If you're later awarded VA disability compensation retroactive to a date before your loan closed, you may be due a refund. Contact your VA regional loan center with your award letter.
What else do lenders check on a VA loan?
Lenders look at your credit, your debt-to-income ratio and VA residual income: the money left each month after major expenses, which must meet a minimum for your family size and region. The home also needs a VA appraisal.
Related calculators
- Mortgage Calculator — Your full monthly housing cost, including property tax, insurance, PMI and HOA fees.
- FHA Loan Calculator — FHA mortgage payment with upfront and annual MIP, property tax and insurance, using HUD's current premium rates.
- Home Affordability Calculator — How much house your income supports under the 28/36 rule, with your debts and down payment.
- Down Payment Calculator — Your down payment, loan, LTV and cash to close for a home price, or how long it will take to save the down payment.
Results are estimates for educational purposes and are not financial, tax or legal advice. See our disclaimer.