VA Loan Calculator

The VA Loan Calculator estimates the monthly payment on a home loan guaranteed by the U.S. Department of Veterans Affairs. Unlike a conventional mortgage, a VA loan lets eligible veterans and service members buy with $0 down and no private mortgage insurance (PMI). This tool folds in the one-time VA funding fee, shows it being financed into your loan, and compares your VA payment side by side with a conventional loan so you can see the real savings.

What is a VA Loan?

A VA loan is a mortgage issued by a private lender but partially guaranteed by the Department of Veterans Affairs. That government backing lets lenders offer better terms than they could on a conventional loan — most notably no required down payment and no monthly mortgage insurance. VA loans are available to eligible veterans, active-duty service members, National Guard and Reserve members, and some surviving spouses.

VA Loan Payment Formula

The monthly principal and interest payment uses the standard amortization formula, applied to the loan amount after the funding fee is added:

Here \(P\) is the total loan amount, \(r\) is the monthly interest rate (annual rate divided by 12), and \(n\) is the number of monthly payments (years × 12). Property tax, home insurance and HOA dues are then added to reach the full monthly PITI payment.

VA Funding Fee Rates (2026)

The funding fee is a one-time charge that helps keep the VA loan program running at no cost to taxpayers. For a purchase loan it depends on your down payment and whether this is your first VA loan:

These rates have been in effect since April 7, 2023. Making a larger down payment moves you into a lower funding-fee tier, which is one of the few reasons a VA borrower might choose to put money down.

Why VA Loans Beat Conventional Loans

Who is Exempt from the Funding Fee?

You do not pay the VA funding fee at all if you are a veteran receiving VA disability compensation, an active-duty Purple Heart recipient, or an eligible surviving spouse. For exempt borrowers, this calculator sets the funding fee to $0 and nothing is added to the loan.

How to Use This Calculator

1. Enter the home price and down payment: VA loans allow $0 down, so you can leave the down payment at zero for the full benefit.
2. Enter your rate and term: Add the interest rate and pick a loan term such as 30 or 15 years.
3. Set your funding fee status: Choose first-time use, subsequent use, or exempt, and decide whether to finance the funding fee into the loan.
4. Add taxes and insurance (optional): Enter annual property tax, home insurance and monthly HOA dues for a full PITI payment.
5. Click Calculate: Review your monthly payment, the funding fee, the VA-versus-conventional comparison, and the step-by-step breakdown.

Frequently Asked Questions

What is a VA loan?

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs and available to eligible veterans, active-duty service members and some surviving spouses. Its biggest advantages are that it requires no down payment and charges no private mortgage insurance (PMI), which can make it far cheaper than a conventional loan.

How is the VA funding fee calculated?

The VA funding fee is a one-time charge equal to a percentage of the base loan amount. For a purchase loan with less than 5% down, it is 2.15% for first-time use and 3.3% for subsequent use. With 5% to 9.99% down it is 1.5%, and with 10% or more down it is 1.25%. The fee can be financed into the loan or paid in cash at closing.

Do VA loans really require no down payment?

Yes. Eligible borrowers can finance up to 100% of the home price, so a VA loan can be obtained with $0 down. You can still make a down payment to lower your loan amount and reduce the funding fee tier.

Do VA loans have PMI?

No. VA loans never charge private mortgage insurance, even with no down payment. On a conventional loan with less than 20% down you would typically pay PMI every month, so removing it is one of the largest savings of a VA loan.

Who is exempt from the VA funding fee?

Veterans who receive VA disability compensation, Purple Heart recipients on active duty, and eligible surviving spouses are exempt from the funding fee. If you are exempt, the funding fee is $0 and nothing is added to your loan.

Can the VA funding fee be financed into the loan?

Yes. Most borrowers roll the funding fee into the loan so they bring nothing to closing. This increases the total loan amount and the monthly payment slightly, but lets you keep your cash. You can also pay it upfront if you prefer a smaller loan balance.

Additional Resources

• VA Home Loans - U.S. Department of Veterans Affairs
• VA Loan - Wikipedia