VA Loan Calculator
Work out your VA loan payment, the one-time funding fee that depends on your down payment and entitlement, and why a VA loan usually beats the alternatives.
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Why a VA loan is usually the cheapest option
A VA loan is guaranteed by the Department of Veterans Affairs and available to eligible servicemembers, veterans and some surviving spouses. The guarantee means the lender carries very little risk, which produces two advantages that are difficult to beat: no down payment is required at all, and there is no monthly mortgage insurance.
That second point is the one that matters most over time. An FHA loan on the same property would carry an annual premium of around 0.55 percent, and a conventional loan with a small deposit would carry private mortgage insurance of a similar order. A VA loan carries neither. On a 400,000 dollar purchase that is roughly 180 dollars a month, or about 65,000 dollars across thirty years, that a VA borrower simply does not pay.
Instead there is a one-time funding fee, which varies with your down payment and whether you have used the entitlement before. With nothing down on a first use it is 2.15 percent, so 8,600 dollars on a 400,000 dollar loan. Put 5 percent down and it falls to 1.50 percent; put 10 percent down and it falls to 1.25 percent. Borrowers with a service-connected disability are exempt from it entirely, and for them the comparison is not close.
The fee is normally financed, which means you pay interest on it, and that is worth weighing. But even financing it, the absence of monthly mortgage insurance usually makes a VA loan cheaper than every alternative within a few years. The calculators do not model the VA's own limits and entitlement rules, so confirm your eligibility and remaining entitlement with the VA or a lender before you rely on the figures.
How the funding fee and payment are calculated
The funding fee is a percentage of the base loan determined by your down payment and entitlement use. It is then added to the loan, and the standard amortisation formula runs on the total.
| Symbol | Meaning |
|---|---|
Base loan |
The purchase price minus your down payment |
Fee rate |
2.15% first use with nothing down, 3.30% if used before, falling with a larger deposit |
Total loan |
What you actually repay, including the financed fee |
Monthly PMI |
Always zero on a VA loan |
Fee rates are set by statute and are shown here for first and subsequent use at the standard deposit tiers. Borrowers with a service-connected disability pay no funding fee, which this calculator models with the exemption selector.
Worked example: 400,000 dollar home with nothing down
A first-use VA loan at 6.25 percent over 30 years, with the funding fee financed.
| Figure | Result |
|---|---|
| Home price | $400,000.00 |
| Down payment | $0.00 |
| Base loan amount | $400,000.00 |
| Funding fee rate (first use, no deposit) | 2.15% |
| Funding fee | $8,600.00 |
| Total loan amount | $408,600.00 |
| Monthly payment | $2,515.82 |
| Monthly mortgage insurance | $0.00 |
| Total interest over 30 years | $497,095.37 |
| Total of all payments | $905,695.37 |
You buy a 400,000 dollar home with no deposit at all, borrowing 408,600 dollars once the funding fee is included. The monthly payment is 2,515.82 dollars and there is no mortgage insurance, ever. An FHA loan on the same purchase would add roughly 180 dollars a month in insurance, which over thirty years is about 65,000 dollars the VA borrower keeps.
Estimates only. Your lender's figures may differ because of fees, escrow and rounding.
Getting the most from your entitlement
Check whether you are exempt from the funding fee
A service-connected disability exempts you from the entire funding fee, and surviving spouses of servicemembers who died in service may also qualify. On a 400,000 dollar loan that is 8,600 dollars. It is worth confirming your status before you assume you owe it.
Putting money down lowers the fee as well as the loan
The funding fee rate falls in steps: 2.15 percent with nothing down, 1.50 percent at 5 percent, 1.25 percent at 10 percent. A 5 percent deposit on a 400,000 dollar home costs 20,000 dollars and reduces the fee by 2,600 dollars, while also cutting the balance the fee is charged on.
Remember the fee is borrowed money if you finance it
Financing 8,600 dollars over thirty years at 6.25 percent costs roughly 10,300 dollars in interest on top. If you have the cash and no higher-return use for it, paying the fee upfront is cheaper. Ask the lender to quote both.
You can reuse the entitlement, and the fee rises
A second VA loan is possible once the first is repaid, but the funding fee increases to 3.30 percent with nothing down. If you are planning a second VA purchase later, factor that higher rate into the plan rather than assuming the first-use figure applies again.
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Frequently asked questions
Do VA loans really require no down payment?
Yes. Eligible borrowers can finance the full purchase price, and the funding fee as well. There is no deposit requirement, which is unusual among mortgage programmes. The lender still assesses your income and credit, so approval is not automatic.
Is there monthly mortgage insurance on a VA loan?
No. There is no monthly mortgage insurance at all, which is a VA loan's single biggest financial advantage. Instead you pay a one-time funding fee at closing, usually financed. Over thirty years the absence of monthly insurance typically saves more than the fee costs.
How much is the VA funding fee?
With nothing down it is 2.15 percent of the loan for a first use and 3.30 percent if you have used the entitlement before. It falls to 1.50 percent at 5 percent down and 1.25 percent at 10 percent or more. Borrowers with a service-connected disability pay nothing.
Can I use a VA loan more than once?
Yes, provided your previous VA loan has been repaid and you have entitlement remaining, or you are buying again after selling. The funding fee is higher on subsequent use, which matters if you are planning more than one VA purchase.
Is a VA loan better than a conventional loan?
For an eligible borrower with little to put down, almost always. No deposit, no monthly mortgage insurance and competitive rates are hard to beat. The comparison narrows if you are exempt from nothing and have 20 percent to put down, because then conventional insurance would not apply either.