VA Loan Calculator
Created by: Daniel Hayes
Last updated:
Enter home price, down payment, rate, loan term, and VA use count to calculate the exact funding fee, total loan amount with fee rolled in, monthly payment, and total cost — no PMI ever required.
VA Loan Calculator
FinanceNo PMI ever required. Enter your purchase details and VA usage to see the exact funding fee, total loan, and monthly payment.
0.0% — VA allows 0% down. Funding fee rate: 2.15%
What Is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S.
Department of Veterans Affairs, available exclusively to eligible service members, veterans, and surviving spouses.
The VA guarantee protects lenders against loss, enabling lenders to offer 0% down payment loans, no monthly mortgage insurance, and competitive interest rates — even for borrowers without substantial savings.
The primary cost is the VA funding fee: a one-time upfront charge based on loan size, down payment, and whether you have used VA benefits before.
For most first-time users with 0% down, the fee is 2.15% of the loan amount — significantly less expensive over time than the years of PMI required on low-down-payment conventional loans.
How the VA Funding Fee Is Calculated
The funding fee is determined by three factors: (1) whether it is your first or subsequent use of VA benefits, (2) the size of your down payment, and (3) loan type (purchase vs. refinance).
The fee is calculated on the base loan amount (home price minus down payment) and is typically rolled into the total loan — it does not have to be paid in cash at closing.
VA Loan Formulas
Base loan = home price − down payment
Funding fee = base loan × funding fee rate
First use, 0% down: 2.15% | Subsequent use, 0% down: 3.30%
5–9.99% down: 1.50% (any use count)
10%+ down: 1.25% (any use count)
Total loan = base loan + funding fee
Monthly payment = total loan × r(1+r)^n / ((1+r)^n − 1)
Example Scenarios
First-Time VA Buyer, 0% Down on $400,000
Base loan: $400,000. Funding fee (2.15%): $8,600 → total loan: $408,600. At 6.75% for 30 years, monthly payment: $2,649. No PMI. Total cost over 30 years: ~$953,000 including down payment. Equivalent conventional loan with 5% down + PMI at 0.70%: $2,200 P&I + $234 PMI = $2,434/month — but PMI cancels around year 8.
VA vs FHA at the Same Purchase Price
Home: $350,000, 0% down. VA (first use, 6.75%, 30yr): $358,025 total loan, $2,321/month, no ongoing MIP. FHA (3.5% down, 7.0%, 30yr): $343,661 total loan, $2,441/month with $155 MIP. After 10 years: VA saves ~$14,400 in MIP alone vs FHA (which keeps MIP for life). VA requires no down payment vs. $12,250 for FHA.
How People Use This Calculator
- Veterans and active service members calculating their true monthly payment with the funding fee rolled in.
- Military families comparing VA versus FHA versus conventional loans before making an offer.
- Borrowers determining whether a down payment of 5% or 10% lowers the funding fee enough to be worthwhile.
- Surviving spouses confirming eligibility and calculating savings versus non-VA loan products.
- Financial advisors helping veterans use their full benefit entitlement optimally.
Tips for VA Loan Planning
If you have a service-connected disability rating, check your funding fee exemption status before closing.
An exemption saves 2.15% of the loan amount upfront — on a $400,000 loan, that is $8,600 you do not have to finance.
Request your Certificate of Eligibility early in the process to confirm your benefit status.
The 0% down VA loan is powerful but consider a small down payment to reduce the funding fee.
At 5% down the fee drops from 2.15% to 1.50% — a savings of 0.65% of the loan.
On a $400,000 loan you save $2,600 in funding fees by putting down $20,000.
Whether that trade-off makes sense depends on your liquidity needs.
Frequently Asked Questions
Who is eligible for a VA loan?
VA loans are available to active duty service members, veterans who served at least 90 consecutive days on active duty during wartime or 181 days during peacetime, National Guard and Reserve members with 6+ years of service, and surviving spouses of service members who died in the line of duty. You must obtain a Certificate of Eligibility (COE) from the VA to confirm your entitlement.
What is the VA funding fee?
The VA funding fee is a one-time upfront fee that helps offset the cost of the VA loan program to taxpayers. For a first-time VA borrower with 0% down, the fee is 2.15% of the loan amount. For subsequent use with 0% down, it rises to 3.30%. With 5% or more down, the fee drops to 1.50% regardless of use count, and to 1.25% with 10%+ down. The fee is typically rolled into the loan.
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation at any level, surviving spouses of veterans who died in service or from a service-connected disability, and veterans eligible for disability pay but receiving retirement pay instead are all exempt from the funding fee. If you are exempt, your VA loan has no upfront cost and no monthly mortgage insurance — a substantial benefit over FHA and conventional loans.
Is there a VA loan limit?
As of 2020, there is no longer a loan limit for eligible borrowers with full VA entitlement. You can borrow above the conventional conforming limit ($766,550 in most areas for 2024) without a down payment if your income and credit qualify. Borrowers with reduced entitlement (from a prior VA loan not yet paid off) still face county loan limits for zero-down eligibility.
Does a VA loan require PMI?
No. VA loans never require private mortgage insurance, regardless of the down payment amount. This is one of the most significant financial advantages of VA loans — with a conventional loan, less than 20% down requires PMI that can cost $100–$300/month. The VA funding fee is a one-time cost that is typically much cheaper than years of PMI.
Can I use a VA loan more than once?
Yes. As long as you have remaining entitlement, you can use VA loan benefits multiple times. After selling or paying off a previous VA-financed home, your entitlement is restored. You can also have two VA loans simultaneously if you have sufficient remaining entitlement, which is useful when PCSing (permanent change of station) to a new duty assignment.
Sources and References
- U.S. Department of Veterans Affairs. VA Home Loan Guaranty Benefits. benefits.va.gov.
- U.S. Department of Veterans Affairs. VA Funding Fee and Loan Closing Costs. va.gov.
- Consumer Financial Protection Bureau (CFPB). VA Home Loans. consumerfinance.gov.