How to use the va loan calculator
- Enter the price and down payment. The funding fee depends on how much you put down.
- Enter the rate and term from your lender's quote.
- Say whether it is your first use of VA loan eligibility and whether you are exempt.
- Choose how to pay the fee: finance it or pay at closing.
- Read the payment, fee and cash needed at closing.
The VA funding fee
VA loans need no down payment and no monthly mortgage insurance, but most borrowers pay a one-time funding fee, a percentage of the loan. The rates below took effect April 7, 2023 and come from the Department of Veterans Affairs.
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to less than 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
The fee is 0.5% for an interest rate reduction refinance (IRRRL) and 2.15% (first use) or 3.3% on a cash-out refinance; this VA loan calculator covers purchases. Veterans who receive VA disability compensation, certain surviving spouses and Purple Heart recipients are exempt.
A worked VA purchase
A $400,000 home, no down payment, 6.25% for 30 years, first use. The fee is 2.15% of $400,000, $8,600.00. Financed, the loan becomes $408,600.00, the principal and interest payment $2,515.82 and total interest over 30 years $497,095.37.
Putting 10% down changes the picture: the fee falls to 1.25% of a $360,000 loan, which is $4,500.00, and the payment drops to $2,244.29. The down payment of $40,000.00 costs cash now but removes $4,100.00 of fee.
Finance the fee or pay it?
Financing the fee means no extra cash at closing, but you pay interest on it for the life of the loan. Paying it up front raises cash needed but lowers the payment. On the default example, financing adds about $52.95 a month. For the full cost of owning, add taxes and insurance in the optional field, and compare your payment with income using the house affordability calculator and the debt to income calculator.
What is not included
The estimate leaves out lender and appraisal fees, the VA appraisal, homeowners association dues, and any seller concessions. This is an estimate, not an offer or advice; your lender and the VA decide eligibility.
Comparing a VA loan with a conventional loan
The cost trade-off is the funding fee against mortgage insurance. A conventional loan with under 20% down usually carries private mortgage insurance every month until you build equity, while a VA loan replaces that with the one-time fee. Run both through the mortgage calculator with the same price and rate, add the insurance a conventional lender quotes, and compare the total monthly payment and the cash needed at closing. A VA loan wins most clearly when you have little to put down and would otherwise pay mortgage insurance for years.
Method and sources
Fee percentages: va.gov, Funding fee and closing costs, rates effective April 7, 2023 (page fetched on 2026-11-04). Loan = price minus down payment, plus the fee if financed; the payment is the standard amortization formula. The VA changes fees by law, so this page needs a refresh if the table changes.
Worked examples
| Example | Input | Result |
|---|---|---|
| No down payment, first use | Home price ($): 400000; Down payment (%): 0; Interest rate (%): 6.25; Loan term (years): 30; VA loan use: first; Exempt from the funding fee?: no; Add the funding fee to the loan?: yes; Property tax and insurance per month ($): 450 | Down payment: $0.00; VA funding fee rate: 2.15%; VA funding fee: $8,600.00; Loan amount: $408,600.00; Monthly principal and interest: $2,515.82; Total monthly payment: $2,965.82; Total interest: $497,095.37; Cash needed at closing: $0.00 |
| 10% down lowers the fee | Home price ($): 400000; Down payment (%): 10; Interest rate (%): 6.25; Loan term (years): 30; VA loan use: first; Exempt from the funding fee?: no; Add the funding fee to the loan?: yes; Property tax and insurance per month ($): 450 | Down payment: $40,000.00; VA funding fee rate: 1.25%; VA funding fee: $4,500.00; Loan amount: $364,500.00; Monthly principal and interest: $2,244.29; Total monthly payment: $2,694.29; Total interest: $443,444.11; Cash needed at closing: $40,000.00 |
| Second use, fee exempt | Home price ($): 325000; Down payment (%): 0; Interest rate (%): 6; Loan term (years): 15; VA loan use: subsequent; Exempt from the funding fee?: yes; Add the funding fee to the loan?: yes; Property tax and insurance per month ($): 0 | Down payment: $0.00; VA funding fee rate: 0.00%; VA funding fee: $0.00; Loan amount: $325,000.00; Monthly principal and interest: $2,742.53; Total monthly payment: $2,742.53; Total interest: $168,656.24; Cash needed at closing: $0.00 |
FAQ
Do VA loans require a down payment?
No. Eligible borrowers can buy with no down payment. A larger down payment lowers the funding fee at 5% and 10%.
Is there monthly mortgage insurance on a VA loan?
No. VA loans have no monthly mortgage insurance; the funding fee replaces it as a one-time cost.
Who is exempt from the VA funding fee?
Veterans who receive VA compensation for a service-connected disability, those eligible for it who take retirement or active-duty pay instead, surviving spouses receiving DIC, and some others listed by the VA.
Why is the fee higher after first use?
For loans with under 5% down, the fee is 2.15% on first use and 3.3% after, according to the VA's table.
Is the funding fee refundable?
In some cases, for example when a disability rating is awarded retroactively to before closing. Ask the VA or your lender.
Does this cover VA refinances?
Not directly. Refinance fees differ: 0.5% for an IRRRL, and 2.15% or 3.3% for a cash-out refinance. See the cash out refinance calculator for the cash and payment.