How to use this VA loan calculator
- Enter the home price and your down payment as a percentage or a dollar amount. VA loans often need none, but the funding fee is lower at 5% and 10% down.
- Choose a term and an interest rate. The starting rate of 7.03% is only an example: it is Freddie Mac’s average 30-year fixed rate as of September 24, 2026, which covers conventional loans, not VA loans. Lenders set VA loan rates, so use the rate on your Loan Estimate.
- Say whether this is your first use of the VA loan benefit or a later one, and tick the exemption box if you don’t owe the funding fee.
- Choose whether to finance the funding fee, then add property tax, homeowners insurance and HOA dues under “Property tax, insurance & HOA.” Compare the no down payment, 5% and 10% down rows to see what a larger down payment saves.
How much is the VA funding fee?
The VA funding fee is a one-time charge on a VA-backed home loan. VA says it helps lower the cost of the loan for U.S. taxpayers, since the VA home loan program doesn’t require down payments or monthly mortgage insurance. On a purchase loan the rate depends on how much you put down and on whether this is your first use of the benefit. The fee is a percentage of the loan amount, not the purchase price.
These are the purchase and construction rates in VA’s chart, effective April 7, 2023. They are the same for veterans, active-duty service members and National Guard and Reserve members. Federal law sets them for loans closed before June 9, 2034, and Congress has amended the schedule several times, so check VA’s page before you close.
| Down payment (share of price) | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more, but less than 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Federal law measures your down payment against the purchase price, and this calculator does the same. “First use” means you have never had a VA-backed or VA direct home loan before; the law makes narrow exceptions, such as a later loan solely to repair or rebuild a home damaged or destroyed in a federally declared major disaster. VA adds that if you only ever used the benefit to buy a manufactured home, you still pay the first-use fee.
On the $400,000 example home, the fee and the resulting payment change like this (fee financed, 7.03% for 30 years):
| Down payment | Base loan | First-use fee | Subsequent-use fee | Monthly P&I (first use) |
|---|---|---|---|---|
| 0% ($0) | $400,000 | 2.15% ($8,600) | 3.3% ($13,200) | $2,727 |
| 5% ($20,000) | $380,000 | 1.5% ($5,700) | 1.5% ($5,700) | $2,574 |
| 10% ($40,000) | $360,000 | 1.25% ($4,500) | 1.25% ($4,500) | $2,432 |
| 20% ($80,000) | $320,000 | 1.25% ($4,000) | 1.25% ($4,000) | $2,162 |
VA loan payment formula
The funding fee is charged on the base loan (price minus down payment). If you finance it, it is added to the loan:
L = B × (1 + f)
- L
- total loan amount when the fee is financed
- B
- base loan = home price − down payment
- f
- funding fee rate (0 if you are exempt)
The monthly principal and interest payment then uses the standard amortization formula:
M = L × r(1 + r)^n / ((1 + r)^n − 1)
- M
- monthly principal and interest payment
- r
- monthly interest rate = annual rate ÷ 12
- n
- number of monthly payments = years × 12
Worked example
A $400,000 home with no down payment has a base loan of B = $400,000. The first-use fee is f = 2.15%, so the fee is $400,000 × 0.0215 = $8,600.00 and the financed loan is L = $408,600. At 7.03% the monthly rate is r = 0.005858 and a 30-year term has n = 360 payments. Then (1 + r)n = 8.1894, so M = $408,600 × 0.005858 × 8.1894 ÷ (8.1894 − 1) = $2,726.66 per month. Over 30 years you would pay $981,599 in principal and interest, of which $572,999 is interest.
Do VA loans have PMI?
No. VA says a VA-backed purchase loan needs no private mortgage insurance (PMI) and no mortgage insurance premiums (MIP). PMI protects the lender on many conventional loans with less than 20% down, and MIP is what FHA loans charge. Borrowers who owe the VA funding fee pay it once instead of monthly, and they can finance it. That is why this calculator has no PMI input. A borrower who is exempt from the fee pays neither.
No down payment vs. 5% vs. 10% down
On the example home, no down payment means a 2.15% fee and a $408,600 loan. Putting 5% down ($20,000) cuts the fee rate to 1.5% and the loan to $385,700, and 10% down ($40,000) brings the rate to 1.25% and the loan to $364,500. The monthly principal and interest payment drops from $2,727 to $2,574 to $2,432. The calculator’s results show the same comparison for your own price, rate and taxes.
Monthly payment by home price and down payment
Principal and interest with the first-use fee financed at 7.03% for 30 years (taxes and insurance not included):
| Home price | 0% down | 5% down | 10% down | 20% down |
|---|---|---|---|---|
| $200,000 | $1,363 | $1,287 | $1,216 | $1,081 |
| $300,000 | $2,045 | $1,930 | $1,824 | $1,622 |
| $400,000 | $2,727 | $2,574 | $2,432 | $2,162 |
| $500,000 | $3,408 | $3,217 | $3,040 | $2,703 |
| $600,000 | $4,090 | $3,861 | $3,649 | $3,243 |
| $750,000 | $5,112 | $4,826 | $4,561 | $4,054 |
Who doesn’t have to pay the VA funding fee?
VA says you won’t pay the funding fee if any of these is true for you:
- You receive VA compensation for a service-connected disability.
- You are eligible for that compensation but receive retirement or active-duty pay instead.
- You receive Dependency and Indemnity Compensation (D.I.C.) as the surviving spouse of a Veteran.
- You are a service member with a proposed or memorandum rating, issued before your loan closes, saying you are eligible for compensation because of a pre-discharge claim.
- You are an active-duty member of the Armed Forces and, on or before your closing date, show evidence that you received a Purple Heart.
If you are later awarded compensation retroactive to a date before your closing, you may be eligible for a refund of the fee. A proposed or memorandum rating that arrives after closing does not qualify you for a refund. Tick “I am exempt from the VA funding fee” in the calculator to see the payment without it.
VA loan limits for 2026
If you have full entitlement, VA says you have no loan limit, as long as you can afford the loan and the appraisal supports the purchase price. Your lender decides how much you can borrow from your credit history, income, debts and assets, and the loan can’t exceed the lower of the appraised value or the purchase price.
Limits matter when you already use part of your entitlement, for example on a second VA loan. VA’s steps: take the entitlement already used from your Certificate of Eligibility, look up the one-unit county limit on the FHFA website (VA’s limits are the same as FHFA’s conforming loan limits), multiply that limit by 25%, and subtract the entitlement used. Most lenders want your entitlement, your down payment, or both together to cover at least 25% of the loan, so remaining bonus entitlement times 4 is roughly the largest loan they will make without a down payment.
FHFA set the 2026 one-unit limit at $832,750 in most of the country, with a ceiling of $1,249,125 in high-cost areas. As a made-up example, if $50,000 of entitlement is already used and the county limit is the baseline, 25% of the limit is $208,187.50. Subtract $50,000 for $158,187.50 of remaining entitlement, and multiply by 4 for $632,750. You can borrow more with a down payment. This calculator does not run the entitlement math.
VA loan requirements and eligibility
To get a VA-backed purchase loan you generally need all of the following, according to VA:
- A Certificate of Eligibility (COE), which depends on your service history and duty status.
- To meet VA’s and your lender’s standards for credit and income. VA doesn’t require a minimum credit score, but some lenders do.
- To live in the home you are buying with the loan.
VA sets minimum service requirements that differ by service period, and separate ones for National Guard and Reserve members and surviving spouses. See VA’s home loan eligibility page and how to request a COE. The VA loan lets you buy a home of up to four units, a condo in a VA-approved project, or a manufactured home, and it has no penalty for paying off the loan early.
VA vs. FHA vs. conventional loans
- Mortgage insurance. A VA loan has none. A conventional loan usually requires PMI with less than 20% down, and an FHA loan charges MIP.
- Down payment. VA lets most eligible buyers put nothing down. For the minimums on other loans, see our FHA loan calculator and mortgage calculator.
- One-time fee. VA charges the funding fee unless you are exempt, and you can finance it. Other loans have their own upfront costs.
- Who can use it. Only borrowers with a VA COE, and only for a home you will live in.
Run the same price and rate through each calculator to compare the full monthly payment. To see what price fits your income, use the house affordability calculator and the debt-to-income calculator.
Closing costs and seller concessions
On a purchase loan, VA says you can finance only the funding fee. You must pay every other fee and charge when the loan closes. Costs such as the loan origination fee, discount points, the VA appraisal fee, title insurance and recording fees can be negotiated between buyer and seller. VA lets sellers or builders offer credits toward your closing costs, but limits seller concessions to 4% of the home’s reasonable value shown on the VA Notice of Value. Concessions include credits toward the funding fee. Estimate what you will owe with the closing cost calculator.
Funding fees for refinance and other VA loans
This calculator covers purchase loans only. The VA funding fee is different for other loan types; the rates below are from the same VA chart and are shown for reference. To model a refinance, use the refinance calculator.
| Loan type | Funding fee |
|---|---|
| Interest rate reduction refinance loan (IRRRL) | 0.5% |
| Cash-out refinance, first use | 2.15% |
| Cash-out refinance, subsequent use | 3.3% |
| Manufactured home loan (not permanently affixed) | 1% |
| Loan assumption | 0.5% |
What this calculator does not include
- Entitlement and county limits. It does not check whether your remaining entitlement covers the loan.
- The VA appraisal. A VA loan can’t exceed the lower of the appraised value and the price, so a low appraisal changes the numbers.
- Closing costs beyond the funding fee, discount points and seller credits.
- Eligibility and occupancy. Whether you qualify for a COE, and your lender’s credit and income standards, are not tested.
- Other loan types: refinances, Native American Direct Loans, manufactured homes not permanently affixed and loan assumptions.
- Your real taxes, insurance and rate. The starting property tax, insurance and interest rate are examples. Only fixed-rate loans are modeled, and the calculator rounds the fee to the cent, which may differ slightly from your lender’s figure.
Frequently asked questions
Do VA loans have PMI?
No. VA-backed purchase loans don’t require private mortgage insurance (PMI) or FHA-style mortgage insurance premiums, according to VA. Borrowers who aren’t exempt instead pay a one-time VA funding fee, which can be financed into the loan. On the example $400,000 loan, financing the 2.15% first-use fee adds about $57.39 a month. Borrowers who are exempt pay no fee.
How much is the VA funding fee in 2026?
For a purchase loan, the first-use fee is 2.15% of the loan with less than 5% down, 1.5% with 5% to under 10% down and 1.25% with 10% or more down. Subsequent use costs 3.3% below 5% down and the same rates above it. These rates have applied since April 7, 2023. On the example home the no-down-payment fee is $8,600.
Can I roll the VA funding fee into my loan?
Yes. You can finance the VA funding fee into a purchase loan or pay it in cash at closing. Financing raises the balance, so you pay interest on the fee. In the example, financing the $8,600 fee raises the payment by $57.39 a month and total interest by $12,060 over 30 years. VA says the funding fee is the only cost you can finance on a purchase loan.
Who doesn’t have to pay the VA funding fee?
Borrowers who receive VA compensation for a service-connected disability, or who would receive it but are getting retirement or active-duty pay instead, don’t pay the fee. VA also exempts surviving spouses receiving Dependency and Indemnity Compensation, service members with a proposed or memorandum disability rating before closing, and active-duty members who show they received a Purple Heart by closing.
Is there a maximum VA loan amount?
Not if you have full entitlement. VA says you have no loan limit as long as you can afford the loan and the appraisal supports the price. Your lender still decides how much you can borrow, and the loan can’t exceed the lower of the appraised value or the purchase price. Limits matter when part of your entitlement is already used; they follow FHFA’s county limits, with a 2026 baseline of $832,750.
Do I need a down payment for a VA loan?
Usually not. VA says its guaranty lets most buyers purchase with no down payment as long as the price isn’t above the appraised value. A down payment still helps: at 5% down the first-use fee falls from 2.15% to 1.5%, and at 10% down to 1.25%. On the example home, 10% down cuts the total loan from $408,600 to $364,500.
Do National Guard and Reserve members pay a different funding fee?
No. Since April 7, 2023, VA lists the same purchase-loan rates for veterans, active-duty service members and National Guard and Reserve members. The rate depends on your down payment and whether this is your first or a later use of the benefit. Reservists paid higher rates than other borrowers on some loans closed before 2020, so older articles may show different figures.
Does this calculator include closing costs?
No, only the VA funding fee. Closing costs such as the appraisal, title insurance, recording fees and lender charges are extra, and on a purchase loan you pay them at closing because only the funding fee can be financed. Buyer and seller can negotiate who pays some of them, and VA caps seller concessions at 4% of the home’s reasonable value. Our closing cost calculator can estimate them.