David is a Chartered Financial Analyst and a former mortgage underwriter specializing in VA loan origination and entitlement.
This 4-in-1 VA Loan calculator helps you estimate your monthly payment (P&I). Enter any three values for your VA loan—Principal, Rate, Term, or Payment—and we will solve for the fourth.
VA Loan Calculator
VA Loan (Amortization) Formulas
i = R / 12 / 100 (Monthly Rate)
n = T * 12 (Number of Months)
Solve for Monthly Payment (M):
M = P * [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Solve for Loan Amount (P):
P = M * [ (1 + i)^n – 1 ] / [ i(1 + i)^n ]
Solve for Term (n):
n = log( M / (M – P*i) ) / log(1 + i)
Solve for Rate (i):
(No direct formula; solved iteratively)
Formula Variables
- (P) Loan Amount: The total loan principal. This may include the VA Funding Fee if you roll it in.
- (R) Annual Rate: The Annual Percentage Rate (APR) you receive from your lender.
- (T) Loan Term: The new term for the loan (e.g., 15 or 30 years).
- (M) Monthly Payment: The fixed monthly payment (Principal & Interest only). This does *not* include taxes, insurance, or HOA fees.
Related Calculators
- Mortgage Payment Calculator
- Loan Affordability Calculator
- Loan to Value (LTV) Calculator
- Debt to Income (DTI) Calculator
What is a VA Loan?
A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). The program is designed for active-duty service members, veterans, and eligible surviving spouses. The main benefit of a VA loan is that it allows qualifying veterans to purchase a home with no down payment.
Because the VA guarantees a portion of the loan, lenders are protected against default. This allows them to offer highly favorable terms, such as $0 down, competitive interest rates (R), and no requirement for Private Mortgage Insurance (PMI). This “no PMI” benefit can save borrowers hundreds of dollars per month compared to FHA or conventional loans.
This calculator is designed to help you estimate the Principal & Interest (P&I) portion of your monthly payment. Your total payment (often called PITI) will also include property taxes and homeowner’s insurance, which are held in escrow. This 4-in-1 tool lets you solve for any variable to plan your purchase.
How to Calculate a VA Loan Payment (Example)
-
Identify New Loan Variables
You are getting a 30-year VA loan after rolling in the funding fee:
• New Loan Amount (P): $350,000
• New Annual Rate (R): 6.2%
• New Loan Term (T): 30 years -
Convert to Monthly Terms (i, n)
The formula uses monthly values:
• Monthly Rate (i): 6.2% / 12 / 100 = 0.0051667
• Number of Months (n): 30 years * 12 = 360 -
Choose the Payment Formula
Use the standard formula to solve for Monthly Payment (M):
M = P * [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] -
Calculate the Monthly Payment
Plug in the monthly values:
• Numerator: 0.0051667 * (1 + 0.0051667)^360 = 0.03316
• Denominator: (1 + 0.0051667)^360 – 1 = 5.419
M = $350,000 * [ 0.03316 / 5.419 ]
M = $350,000 * 0.006119 = $2,141.65
Your new monthly P&I payment will be $2,141.65.
Frequently Asked Questions (FAQ)
What is the VA Funding Fee?
The VA funding fee is a one-time fee paid to the VA to help cover the costs of the program and reduce the burden on taxpayers. The fee percentage varies based on your service type, down payment, and whether it’s your first time using the benefit. Most borrowers roll this fee into their total loan amount (P).
Do VA loans require a down payment?
No. For qualified veterans with full entitlement, VA loans are one of the only programs that require no down payment ($0 down) and have no loan limit (as of 2020). Lenders may, however, have their own internal limits.
What is a Certificate of Eligibility (COE)?
A COE is a document from the VA that proves to the lender that you are eligible for the VA loan benefit. You must have a valid COE to get a VA loan. You can apply for one through the VA’s eBenefits portal or ask your lender to get it for you.
Do VA loans have PMI?
No. VA loans do not have monthly Private Mortgage Insurance (PMI) or Mortgage Insurance Premium (MIP). This is one of the program’s biggest advantages, as it significantly lowers your monthly housing cost compared to other low-down-payment loans.