# VA loan calculator

> VA loan payment with the VA funding fee from the current table (first or later use, by down payment), the financed loan amount, taxes and insurance.

Interactive version: https://www.calcopenly.com/finance/va-loan-calculator
Subject: Finance calculators

A VA purchase loan needs no down payment and no monthly mortgage insurance; most borrowers pay a one-time funding fee instead. The fee is a percentage of the loan from VA's table: 2.15% with less than 5% down on first use and 3.3% on later use, falling to 1.5% with 5% down and 1.25% with 10% down. It can be added to the loan, and veterans receiving VA disability compensation, among others, pay nothing.

With the defaults, a 400,000 home bought with nothing down on first use carries a funding fee of 8,600. Financed, it takes the loan to 408,600; principal and interest at 6.25% over 30 years are 2,515.82, or 3,007.49 a month with property tax and insurance.

Veterans with full entitlement have no VA loan limit, as long as they can afford the loan and the appraisal supports the price. With partial entitlement the lender may ask for a down payment, which this calculator does not work out.

## Inputs

- **Home price**
- **Enter down payment as** (options: Percent of price, Amount)
- **Down payment**: The funding fee falls at 5% and at 10% down.
- **Down payment**: The funding fee falls at 5% and at 10% down.
- **VA loan use**: Later use costs more only with less than 5% down. (options: First use, Used before)
- **Exempt from the funding fee**: For example, veterans receiving VA compensation for a service-connected disability, surviving spouses receiving DIC, and active-duty Purple Heart recipients (VA).
- **Add the funding fee to the loan**
- **Interest rate (per year)**
- **Loan term**
- **Property tax (per year, of home price)**
- **Homeowners insurance (per year)**
- **HOA dues (per month)**

## Results

- Total monthly payment — main result
- Principal and interest
- Property tax per month
- Insurance per month
- Funding fee rate
- VA funding fee
- Loan before the fee
- Total loan amount
- Down payment
- Down payment and fee paid in cash
- Loan-to-value with the fee
- Total interest
- Interest paid on the financed fee

## Formula

$$
F = f\times L,\quad T = L + F,\quad M = \frac{T\,r\,(1+r)^n}{(1+r)^n-1}
$$

## Worked examples

### 400k, nothing down, first use

- Home price: 400,000
- Enter down payment as: Percent of price
- Down payment: 0%
- VA loan use: First use
- Exempt from the funding fee: no
- Add the funding fee to the loan: yes
- Interest rate (per year): 6.25%
- Loan term: 30 years
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **Funding fee rate: 2.15%**
- **VA funding fee: 8,600.00**
- **Total loan amount: 408,600.00**
- **Principal and interest: 2,515.82**
- **Total monthly payment: 3,007.49**
- **Interest paid on the financed fee: 10,462.60**
- Checked against: VA funding fee table (2.15%, first use, under 5% down); Python decimal annuity on 408,600 at 6.25%/12 over 360 months; fee interest = 497,095.37 − 486,632.77

### Later use, nothing down

- Home price: 400,000
- Enter down payment as: Percent of price
- Down payment: 0%
- VA loan use: Used before
- Interest rate (per year): 6.25%
- Loan term: 30 years
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **Funding fee rate: 3.30%**
- **VA funding fee: 13,200.00**
- **Total loan amount: 413,200.00**
- **Principal and interest: 2,544.14**
- Checked against: VA funding fee table (3.3% after first use, under 5% down); Python decimal annuity

### Exactly 5% down on later use

- Home price: 350,000
- Enter down payment as: Percent of price
- Down payment: 5%
- VA loan use: Used before
- Interest rate (per year): 6%
- Loan term: 30 years
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **Funding fee rate: 1.50%**
- **VA funding fee: 4,987.50**
- **Total loan amount: 337,487.50**
- **Principal and interest: 2,023.41**
- Checked against: VA funding fee table: '5% or more' is 1.5% for first and later use; 1.5% × 332,500 = 4,987.50; Python decimal annuity

### 10% down on a 15-year loan

- Home price: 300,000
- Enter down payment as: Amount
- Down payment: 30,000
- VA loan use: First use
- Interest rate (per year): 5.5%
- Loan term: 15 years
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **Funding fee rate: 1.25%**
- **VA funding fee: 3,375.00**
- **Total loan amount: 273,375.00**
- **Principal and interest: 2,233.70**
- **Total monthly payment: 2,633.70**
- Checked against: VA funding fee table (1.25% at 10% or more down); Python decimal annuity on 273,375 at 5.5%/12 over 180 months

### Exempt veteran

- Home price: 400,000
- Enter down payment as: Percent of price
- Down payment: 0%
- VA loan use: First use
- Exempt from the funding fee: yes
- Interest rate (per year): 6.25%
- Loan term: 30 years
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **VA funding fee: 0.00**
- **Total loan amount: 400,000.00**
- **Principal and interest: 2,462.87**
- **Interest paid on the financed fee: not applicable**
- Checked against: VA: veterans receiving service-connected disability compensation pay no funding fee; Python decimal annuity on 400,000

### Just under 5% down (4.99%)

- Home price: 400,000
- Enter down payment as: Amount
- Down payment: 19,960
- VA loan use: First use
- Interest rate (per year): 6.25%
- Loan term: 30 years
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **Funding fee rate: 2.15%**
- **VA funding fee: 8,170.86**
- **Total loan amount: 388,210.86**
- **Down payment and fee paid in cash: 19,960.00**
- Checked against: VA funding fee table: 19,960 is 4.99% of the price, below the 5% tier, so 2.15% × 380,040 = 8,170.86

## Questions

### How much is the VA funding fee in 2026?

For a purchase loan it is 2.15% of the loan with less than 5% down on first use, and 3.3% on any later use. With 5% or more down it is 1.5%, and with 10% or more 1.25%, whatever the use. These rates have applied since April 7, 2023 (VA). On a 400,000 loan with nothing down, first use costs 8,600 and later use 13,200.

### Who is exempt from the VA funding fee?

You pay no fee if you receive VA compensation for a service-connected disability, or are eligible for it but draw retirement or active-duty pay instead. Surviving spouses receiving Dependency and Indemnity Compensation are exempt, as are service members with a proposed or memorandum rating before closing and active-duty members who received a Purple Heart. The exemption saves 8,600 on a 400,000 first-use loan.

### Can you roll the VA funding fee into the loan?

Yes. On a purchase loan the funding fee is the only cost you can finance; you can also pay it in cash at closing (VA). Financing the 8,600 fee on a 400,000 loan at 6.25% for 30 years adds 52.95 to the monthly payment and 10,462.60 of interest over the term.

### Does a down payment lower the VA funding fee?

Yes, twice: the rate falls and it applies to a smaller loan. On a 400,000 home on first use, nothing down costs 2.15% of 400,000, or 8,600. Putting 5% (20,000) down cuts the rate to 1.5% of 380,000, or 5,700; 10% down gives 1.25% of 360,000, or 4,500. On later use, 5% down cuts the rate from 3.3% to 1.5%.

### Do VA loans have PMI or a loan limit?

No PMI or FHA-style mortgage insurance premium is charged on a VA loan. Borrowers with full entitlement have no VA loan limit, as long as they can afford the loan and the appraisal supports the price. With partial entitlement, most lenders want your entitlement and down payment together to cover 25% of the loan (VA).

### How accurate is the VA loan calculator?

Accuracy depends on your inputs and the method's assumptions. Decimal arithmetic uses 50 significant digits, but estimates, numerical methods and source data can be less precise; the displayed rounding does not remove those limits. It is checked against 6 worked examples whose answers come from independent sources; for example, “400k, nothing down, first use” is checked against VA funding fee table (2.15%, first use, under 5% down); Python decimal annuity on 408,600 at 6.25%/12 over 360 months; fee interest = 497,095.37 − 486,632.77.

### Where does the method come from?

U.S. Department of Veterans Affairs — VA funding fee and loan closing costs (rates effective April 7, 2023); U.S. Department of Veterans Affairs — VA home loan limits; U.S. Department of Veterans Affairs — VA-backed purchase loan.

## Sources

- [U.S. Department of Veterans Affairs — VA funding fee and loan closing costs (rates effective April 7, 2023)](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/)
- [U.S. Department of Veterans Affairs — VA home loan limits](https://www.va.gov/housing-assistance/home-loans/loan-limits/)
- [U.S. Department of Veterans Affairs — VA-backed purchase loan](https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/)

_Note: financial information, not professional advice._