VA mortgage calculator Estimate your monthly payment on a VA home loan including the VA funding fee. Compare how different down payment amounts affect your funding fee and total cost.
Display currency
Enter values Provide home price, down payment, rate, and term to estimate your VA mortgage payment.
VA mortgage calculator guide: funding fee, zero-down eligibility
The VA home loan is one of the most powerful mortgage benefits available to US military service members, veterans, and eligible surviving spouses.
How the VA funding fee works
The VA funding fee is a one-time charge applied to every VA purchase loan. For first-time use with no down payment, the fee is 2.15% of the base loan amount. The fee drops to 1.5% with a 5% down payment and 1.25% with 10% or more down. Subsequent use carries a higher 3.3% fee unless you put at least 5% down.
The funding fee can be paid upfront at closing or rolled into the loan balance. When financed, it increases your total loan amount and therefore your monthly payment — but it avoids the need for a large lump sum at closing.
Funding Fee = Base Loan Amount × Fee Rate
Where the fee rate depends on down payment percentage, first vs. subsequent use, and loan type
Total Loan = (Home Price − Down Payment) + Funding Fee
The funding fee is added to the base loan when financed into the mortgage
Who is exempt from the funding fee
Not every veteran pays the funding fee. Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and surviving spouses receiving Dependency and Indemnity Compensation (DIC) are all exempt. If you qualify for an exemption, your effective loan cost drops significantly compared to a conventional mortgage with PMI.
If you are unsure about your exemption status, your VA Certificate of Eligibility (COE) will indicate whether the fee applies. Lenders can pull your COE electronically through the VA's Web LGY system.
Zero down payment: the signature VA benefit
VA loans are one of the only mainstream mortgage products that allow 100% financing with no down payment. This removes the biggest barrier to homeownership for many service members. However, borrowing the full purchase price plus the funding fee means higher monthly payments and more total interest over the life of the loan.
The down payment comparison table in this calculator shows exactly how much you save each month — and over the full loan term — by putting even a small amount down. A 5% down payment on a $400,000 home, for example, reduces both the funding fee rate and the loan principal.
VA loan vs. conventional and FHA
VA loans have no monthly PMI regardless of down payment, while conventional loans require PMI until you reach 20% equity and FHA loans charge mortgage insurance for the life of the loan (on most terms). This makes VA loans significantly cheaper on a monthly basis for borrowers who would otherwise need PMI.
The trade-off is the funding fee, which is a one-time cost rather than an ongoing monthly charge. For most borrowers, the funding fee is substantially less than the cumulative PMI they would pay on a conventional loan with less than 20% down.
VA mortgage rates are typically 0.25% to 0.50% lower than conventional rates because the VA guaranty reduces lender risk. Even small rate differences compound significantly over 30 years. A 0.5% lower rate on a $350,000 loan saves roughly $100 per month and over $35,000 in total interest.
Rate shopping is especially important for VA loans. The VA allows borrowers to negotiate rates and closing costs with lenders, and you can use discount points to buy down your rate if you plan to stay in the home long enough for the savings to exceed the upfront cost.
Choosing your loan term
VA loans are available in 15-year and 30-year terms (and occasionally 20 or 25 years). A 15-year term carries a higher monthly payment but dramatically reduces total interest — often by more than half. The funding fee percentage is the same regardless of term, so the choice comes down to monthly cash flow versus long-term savings.
Use this calculator to compare different term lengths by adjusting the loan term input. If the 15-year payment fits your budget, the interest savings are substantial. If not, a 30-year term with occasional extra principal payments offers flexibility.
For first-time use with no down payment, the VA funding fee is 2.15% of the loan amount. It drops to 1.5% with 5%+ down and 1.25% with 10%+ down. Subsequent use is 3.3% with no down payment.
Can I avoid the VA funding fee?
Yes. Veterans with service-connected disabilities, Purple Heart recipients on active duty, and surviving spouses receiving DIC are exempt from the funding fee.
Do VA loans require PMI?
No. VA loans never require private mortgage insurance regardless of your down payment amount. The VA guaranty replaces the need for PMI.
What is the minimum down payment for a VA loan?
Zero. VA loans allow 100% financing with no down payment, though putting money down reduces both your funding fee rate and your monthly payment.
Is the VA funding fee tax deductible?
The VA funding fee may be deductible as prepaid mortgage interest in the year it is paid. Consult a tax professional for your specific situation, as tax laws change periodically.
Can I finance the VA funding fee into my loan?
Yes. Most borrowers roll the funding fee into the loan balance rather than paying it upfront at closing. This increases your monthly payment slightly but avoids a large cash outlay.
How do VA mortgage rates compare to conventional rates?
VA rates are typically 0.25% to 0.50% lower than conventional mortgage rates because the VA guaranty reduces lender risk. Rates vary by lender, so shopping multiple lenders is recommended.
Can I use a VA loan more than once?
Yes. VA loan entitlement can be restored after paying off a previous VA loan. However, the funding fee is higher on subsequent use (3.3% vs. 2.15% with no down payment) unless you are exempt.
What credit score do I need for a VA loan?
The VA does not set a minimum credit score, but most lenders require at least 620. Some lenders work with lower scores. The VA's guaranty allows more flexible underwriting than conventional loans.
Does this calculator account for property taxes and insurance?
No. This calculator estimates principal and interest only, including the funding fee rolled into the loan. Your actual monthly payment will also include property taxes, homeowners insurance, and possibly HOA fees.
