MortgageMath

VA Loan Calculator

By MortgageMath Editorial Team Last reviewed Methodology

A VA loan calculator estimates your monthly payment including the one-time VA funding fee for eligible veterans and service members. Select your service type, down payment, and whether it is your first or subsequent VA loan to see a complete payment breakdown.

Total Monthly Payment

$3,159/mo

Total loan: $409,200 (includes $9,200 funding fee)

No PMI required — VA loans never require private mortgage insurance
Principal & Interest$2,692/mo
Property Tax$367/mo
Homeowner's Insurance$100/mo

Down Payment

$0

Funding Fee

$9,200 (2.30%)

Total Interest

$560,012

$0$102k$205k$307k$409kNowYr 5Yr 10Yr 15Yr 20Yr 25Yr 30Remaining balanceCumulative interest

What is a VA loan?

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs (VA), available to eligible active-duty service members, veterans, and surviving spouses. It is one of the most powerful mortgage products available in the United States, offering benefits that no other loan type provides: zero down payment, no private mortgage insurance (PMI), and typically lower interest rates than conventional or FHA loans.

The VA does not lend money directly. Instead, it guarantees a portion of each loan made by VA-approved private lenders — banks, credit unions, and mortgage companies. This guarantee reduces lender risk, which is why lenders can offer better terms to VA borrowers than to conventional borrowers with similar profiles.

VA loans were created by the Servicemen's Readjustment Act of 1944 — commonly known as the G.I. Bill — to help returning World War II veterans purchase homes. Since then, the program has helped more than 28 million veterans and service members finance homes. The benefit is not a one-time use: eligible borrowers can use their VA entitlement multiple times throughout their lives.

Understanding the VA funding fee

The VA funding fee is a one-time charge that helps keep the VA loan program self-sustaining. Unlike FHA MIP or PMI — which are paid monthly — the VA funding fee is paid once at closing and can be rolled into the loan amount. The fee ranges from 1.25% to 3.60% of the loan amount, determined by three factors:

  • Down payment size — larger down payments reduce the funding fee
  • First or subsequent use — using the VA benefit again costs more (3.60%)
  • Service type — active duty/veteran vs. National Guard/Reserve (rates are now equal)
Down Payment First Use Subsequent Use
Less than 5% 2.30% 3.60%
5% to less than 10% 1.50% 3.60%
10% or more 1.25% 3.60%

Rates apply to active duty, veterans, and National Guard/Reserve members equally. Source: VA.gov, effective 2020–present.

Exemption: Veterans receiving VA disability compensation (10%+ rating), surviving spouses of veterans who died in service, and Purple Heart recipients on active duty are entirely exempt from the funding fee. If you qualify, you save thousands of dollars — this exemption should always be verified with your lender before closing.

The no-PMI advantage: how much you save

The absence of PMI is one of the VA loan's most significant and often under-appreciated financial benefits. On a conventional loan with less than 20% down, PMI typically costs between 0.30% and 1.50% of the loan amount annually — adding $75 to $375 per month on a $300,000 loan, depending on your credit score.

The VA funding fee replaces this ongoing cost. While you pay the funding fee at closing (or roll it into the loan), you avoid years of monthly PMI payments. Consider a $400,000 loan with 0% down:

Cost Item VA Loan (0% down) Conventional (0% down*)
Down payment $0 $0*
Upfront cost $9,200 funding fee (rolled in) $0
Monthly PMI / MIP $0 — no PMI ever ~$200/mo (0.60% rate, 720 credit)
PMI duration (10yr) $0 $24,000 total
Net savings over 10yr ≈$14,800 vs. conventional Baseline

*Conventional loans with 0% down are rare and typically require special programs. Comparison shown for illustrative purposes at 6.89% rate with 720 credit score.

Even when the funding fee is included, most VA borrowers save money compared to a comparable conventional loan with PMI — often coming out ahead within 2 to 4 years, and continuing to save for as long as they hold the loan.

VA loan payment examples

The following examples show how down payment size, service type, and first vs. subsequent use affect total monthly payment and funding fee cost. All examples use a 6.89% rate on a 30-year fixed loan with 1.1% property tax and $1,200/yr home insurance.

Example 1: Active duty, first use, zero down

Detail Value
Home Price $400,000
Down Payment $0 (0%)
Base Loan Amount $400,000
Funding Fee $9,200 (2.30%)
Total Loan (with fee) $409,200
Monthly P&I $2,693/mo
Property Tax $367/mo
Homeowner's Insurance $100/mo
Total Monthly Payment $3,160/mo
Monthly PMI $0 — none required

With zero down, this veteran finances the entire home purchase plus the $9,200 funding fee into the loan. Despite borrowing 100% of the purchase price, there is no PMI — a saving of approximately $200/month compared to a conventional borrower with 720 credit putting nothing down.

Example 2: 5% down, first use — lower funding fee

Detail Value
Home Price $350,000
Down Payment $17,500 (5%)
Base Loan Amount $332,500
Funding Fee $4,988 (1.50%)
Total Loan (with fee) $337,488
Monthly P&I $2,220/mo
Property Tax $321/mo
Homeowner's Insurance $100/mo
Total Monthly Payment $2,641/mo
Funding Fee Savings vs. 0% Down $4,212 less

Putting 5% down drops the funding fee from 2.30% to 1.50% — saving $4,212 compared to the zero-down scenario. The monthly payment also decreases by $519 due to the smaller loan balance. If you have savings available, even a modest down payment creates meaningful interest savings over the loan term.

Example 3: Subsequent use, zero down — higher funding fee

Detail Value
Home Price $300,000
Down Payment $0 (0%)
Base Loan Amount $300,000
Funding Fee $10,800 (3.60% — subsequent use)
Total Loan (with fee) $310,800
Monthly P&I $2,044/mo
Property Tax $275/mo
Homeowner's Insurance $100/mo
Total Monthly Payment $2,419/mo
Monthly PMI $0 — still none required

Subsequent VA loan use carries a 3.60% funding fee — regardless of down payment — which is significantly higher than the first-use rates. However, the loan still has no PMI and the no-down-payment benefit still applies. Veterans using the benefit again should weigh putting more down to reduce the total loan amount, since the funding fee rate itself does not decrease on subsequent use.

VA vs. FHA vs. conventional loans

Understanding how VA loans compare to other mortgage types helps you see the full scope of the benefit:

Feature VA Loan FHA Loan Conventional
Minimum down 0% 3.5% 3%
PMI / MIP None Yes — 0.55%/yr Yes — at LTV > 80%
Upfront fee 1.25%–3.60% 1.75% UFMIP None
Credit score min No VA minimum (lenders vary) 580 for 3.5% down Typically 620+
Insurance removable? N/A (none required) Only with 10%+ down Yes — at 80% LTV
Loan limits None (full entitlement) $498,257 standard $766,550 standard
Who qualifies Veterans, service members, spouses Anyone who qualifies Anyone who qualifies

For eligible borrowers, VA loans are almost universally the best mortgage option available. The combination of zero down, no PMI, and competitive interest rates creates a monthly payment advantage that compounds significantly over the loan term. The only scenario where a non-VA loan might be preferable is when a borrower has substantial savings (20%+ down) and an exceptionally high credit score that qualifies them for the lowest conventional rates — even then, the VA loan is often competitive.

Frequently Asked Questions

What is the VA funding fee and why is it required?
The VA funding fee is a one-time charge paid at closing on VA-backed home loans. It ranges from 1.25% to 3.60% of the loan amount, depending on your down payment, service type, and whether it is your first VA loan. The fee helps sustain the VA loan program so it can continue offering zero-down, no-PMI mortgages to eligible veterans without requiring ongoing taxpayer subsidies. Most borrowers roll the fee into the loan rather than paying it out of pocket at closing.
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation at any rating (10% or higher), surviving spouses of veterans who died in service or from a service-connected disability, and Purple Heart recipients on active duty are all exempt from the VA funding fee. If you are exempt, you save thousands of dollars — for example, a $400,000 loan with 0% down would normally carry a $9,200 funding fee (2.3%). Always confirm your exemption status with your lender before closing.
Can I roll the VA funding fee into my loan?
Yes. The VA funding fee can be financed into the loan amount rather than paid upfront at closing. For example, if you are borrowing $400,000 with a 2.3% funding fee ($9,200), your total loan becomes $409,200. This increases your monthly payment slightly but preserves your cash. Our calculator automatically adds the funding fee to the loan and shows you the resulting total monthly payment.
Do VA loans require PMI (private mortgage insurance)?
No. VA loans never require private mortgage insurance (PMI), even with 0% down. This is one of the most significant financial advantages of VA loans. On a conventional loan with less than 20% down, PMI typically adds $50 to $300 per month to your payment. The VA funding fee replaces this ongoing cost — you pay a one-time fee at closing instead of recurring monthly insurance premiums.
How many times can I use my VA loan benefit?
You can use your VA loan benefit multiple times throughout your life, as long as you meet eligibility requirements and have sufficient entitlement. After paying off a previous VA loan and selling the home, your full entitlement is restored. You can also have two VA loans simultaneously if you have remaining entitlement — for example, if you relocate and want to keep your first home as a rental. The funding fee is higher for subsequent uses (3.60% vs. 2.30% with 0% down) to reflect the increased risk.
What is the VA loan limit in 2026?
As of 2020, VA loans have no loan limits for veterans with full entitlement — meaning you can borrow as much as a lender will approve with no cap tied to county loan limits. Veterans with partial or reduced entitlement (from a prior VA loan that has not been fully repaid) may still be subject to county loan limits. The 2026 conforming loan limit is $766,550 for most counties. In high-cost areas, limits go up to $1,149,825.
What service is required to qualify for a VA home loan?
Eligibility requirements vary by service era. Generally: 90 consecutive days of active duty during wartime, or 181 days during peacetime qualifies veterans. National Guard and Reserve members typically need 6 years of service, or 90 days on active duty under Title 10 orders. Surviving spouses of veterans who died in service or from a service-connected disability are also eligible. A Certificate of Eligibility (COE) from the VA confirms your entitlement and is required by lenders.
What is the difference between first-use and subsequent-use funding fees?
The funding fee is lower for first-time VA loan users than for borrowers using the benefit again. With 0% down, the first-use rate is 2.30% and the subsequent-use rate is 3.60% — regardless of down payment or service type for subsequent uses. If you put 5% or more down, the first-use rate drops to 1.50%; 10% or more drops it to 1.25%. These rates were equalized between active duty and National Guard/Reserve borrowers in 2020.
How do VA loan interest rates compare to conventional loans?
VA loan interest rates are typically 0.25% to 0.50% lower than comparable conventional loan rates. This is because VA loans are guaranteed by the federal government, reducing lender risk. Combined with no PMI requirement and no minimum down payment, VA loans almost always result in a lower total monthly payment than conventional loans for eligible borrowers — even when the funding fee is factored in.
Can I use a VA loan to buy a second home or investment property?
No. VA loans are intended for primary residences only. You must certify that you intend to personally occupy the property as your primary home within a reasonable time after closing. VA loans cannot be used to purchase vacation homes, investment properties, or rental properties that you will not occupy. However, you can rent out part of a multi-family property (up to 4 units) if you live in one of the units.

Related Calculators

FHA Loan Calculator
Compare VA vs. FHA monthly payments and mortgage insurance costs.
PMI Calculator
See how much conventional PMI would cost compared to the VA funding fee.
Rent vs Buy Calculator
Use your VA benefit to see when buying beats renting long-term.
HELOC Payment Calculator
Explore home equity options after building equity with your VA loan.

Sources & Methodology

This calculator is for informational purposes only and does not constitute financial, legal, or military benefits advice. VA funding fee rates are based on official VA.gov tables and are subject to change. Eligibility requirements vary; consult an approved VA lender or the Department of Veterans Affairs for personalized guidance.