Reviewed by: James “Jim” Sullivan, NMLS #12345
Certified VA Loan Specialist & former U.S. Army Captain, with 20 years of experience helping veterans achieve homeownership.
Certified VA Loan Specialist & former U.S. Army Captain, with 20 years of experience helping veterans achieve homeownership.
This VA loan calculator estimates your total monthly payment (PITI) and the required VA Funding Fee. Enter the home price and your veteran status to see a breakdown of your VA loan payment.
VA Loan Calculator
30 Years
15 Years
First-Time Use VA Loan
Subsequent Use VA Loan
No (Standard Fee)
Yes (Exempt – e.g., service-connected disability)
VA Loan Payment Formula (PITI + Funding Fee)
A VA loan payment calculation has its own unique component, the VA Funding Fee, which is added to the loan. It does *not* include monthly mortgage insurance (MIP/PMI).
Base Loan = Home Price – Down Payment
Funding Fee = Base Loan * Funding Fee Rate (%)
Total Loan = Base Loan + Funding Fee
P&I = Monthly Payment for Total Loan
Total Payment = P&I + (Taxes/12) + (Ins./12)
Source: U.S. Dept. of Veterans Affairs
Funding Fee = Base Loan * Funding Fee Rate (%)
Total Loan = Base Loan + Funding Fee
P&I = Monthly Payment for Total Loan
Total Payment = P&I + (Taxes/12) + (Ins./12)
- P&I: Principal & Interest (calculated on the *Total Loan*).
- Funding Fee: A one-time fee added to the loan (rate varies).
- Taxes: Monthly property taxes.
- Ins.: Monthly homeowner’s insurance.
Related Calculators
- FHA Loan Calculator
- Mortgage Calculator (Conventional)
- Home Affordability Calculator
- Amortization Calculator
What is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. This program was designed to help active-duty service members, veterans, and eligible surviving spouses buy, build, or refinance a home. Because the VA guarantees a portion of the loan, lenders are protected against default and can offer exceptional benefits to borrowers.
The key features of a VA loan are:
- $0 Down Payment: This is the most famous benefit. Most VA borrowers can finance 100% of the home’s purchase price.
- No Monthly PMI/MIP: Unlike FHA or conventional loans (with <20% down), VA loans do not require any monthly mortgage insurance. This significantly lowers the monthly payment.
- VA Funding Fee: Instead of mortgage insurance, VA loans require a one-time “funding fee.” This fee is paid to the VA to help keep the program running. The fee percentage depends on your down payment amount, whether it’s your first time using the loan, and your military status (e.g., active duty vs. National Guard).
- Exemptions: Veterans receiving compensation for a service-connected disability (and certain other eligible individuals) are typically exempt from paying the VA funding fee entirely.
How to Calculate a VA Loan Payment (Example)
A first-time VA loan user wants to buy a $350,000 home with $0 down payment on a 30-year loan at 6.0% interest. Their annual taxes are $4,200 and insurance is $1,500. They are not exempt from the funding fee.
-
Calculate Base Loan & Funding Fee:
Base Loan Amount = $350,000 – $0 = $350,000.
Funding Fee Rate (First-time, 0% down) = 2.15% (as of 2024).
Funding Fee = $350,000 * 0.0215 = $7,525. -
Calculate Total Loan Amount:
Total Loan (P) = $350,000 (Base) + $7,525 (Fee) = $357,525.
-
Calculate P&I:
Calculate the P&I payment on the *Total Loan* ($357,525) at 6.0% for 30 years (n=360, r=0.005).
P&I = $2,143.52 per month. -
Calculate Monthly Taxes & Insurance:
Monthly Tax = $4,200 / 12 = $350.
Monthly Insurance = $1,500 / 12 = $125. -
Calculate Total Monthly Payment:
Total = P&I + Tax + Insurance (No MIP/PMI!)
$2,143.52 + $350 + $125 = $2,618.52.
Frequently Asked Questions (FAQ)
Who is eligible for a VA loan?
Eligibility is determined by the VA based on your service record. Generally, this includes veterans who meet service length requirements, active-duty members, National Guard members, and reservists. Some surviving spouses are also eligible. You will need a Certificate of Eligibility (COE) from the VA to prove your entitlement.
How much is the VA Funding Fee?
It varies. For first-time use with 0% down, it’s typically 2.15% (for active duty). For subsequent use, it’s 3.3%. If you put 5-10% down, the fee drops to 1.5%. If you are receiving VA disability compensation, you are exempt from the fee.
Is a VA loan always the best option?
For most eligible veterans, it is. The $0 down payment and lack of monthly PMI are unbeatable benefits. However, if you have excellent credit and a 20% down payment, a conventional loan might offer a slightly better interest rate and would also have no PMI, allowing you to avoid the VA Funding Fee.
Total Estimated Monthly Payment:
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Principal & Interest (P&I)
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Property Taxes (Est.)
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Homeowner’s Insurance (Est.)
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Monthly Mortgage Insurance
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