A VA loan calculator estimates the monthly payment on a Department of Veterans Affairs-backed mortgage, including the one-time VA funding fee that most borrowers finance into the loan. This calculator estimates VA loan payments using home price, down payment, interest rate, term, and funding-fee tier, expressed as a monthly principal- and-interest payment plus the funding fee in dollars and the total financed loan amount.
The VA Home Loan program has guaranteed more than 28 million loans since 1944 (per the U.S. Department of Veterans Affairs, 2024), and in fiscal year 2024 backed roughly 400,000 new mortgages. Two features make these loans distinctive: a 0 percent down payment is the standard option, and there is no monthly private mortgage insurance or MIP at any down-payment level.
The trade-off is the VA funding fee, paid once at closing and typically rolled into the loan. First-time borrowers with no down payment pay 2.15 percent of the loan amount; the fee drops to 1.50 percent with 5 percent down or 1.25 percent with 10 percent or more down. Subsequent users start at 3.30 percent at 0 percent down. Borrowers with a service-connected disability rating are exempt from the fee entirely, as are surviving spouses receiving Dependency and Indemnity Compensation and active-duty Purple Heart recipients. Confirm your category on your Certificate of Eligibility before closing; the fee waiver is the difference between an excellent loan and an unbeatable one.
Key takeaway
The funding fee is the trade-off for no-PMI, zero-down financing. On a $300K loan with 0% down at 2.15%, the fee is $6,450, financed into the loan, so you pay interest on it over 30 years. That's still cheaper than 30 years of conventional PMI on a no-down-payment loan (which conventional lenders won't even offer). For disability-rated borrowers, VA loans are nearly unbeatable: zero down, no PMI, no funding fee.
How it's calculated
VA loan monthly payment is straight amortization on the total loan amount:
Total = (home price − down payment) × (1 + funding fee %)
M = Total × r(1+r)^n / ((1+r)^n − 1)
where r is the monthly interest rate (annual ÷ 12) and n is months (years × 12). The funding fee is added to the financed balance, almost no one pays it cash at closing, so you pay interest on it for the life of the loan, just like FHA's UFMIP. Unlike FHA and conventional, there's no monthly insurance premium added on top.
Source: VA.gov funding-fee tables and standard mortgage amortization
Examples
$300,000 home, 0% down, 6.5% over 30 years, first-use 2.15%
- Home price $300,000
- Down payment 0%
- Interest rate 6.5%
- Loan term 30 years
- VA funding fee 2.15%
On a $300,000 home with VA's 0% down at 6.5% over 30 years, first-use funding fee adds $6,450 to the loan, totaling $306,450 financed. The monthly payment is $1,937, and unlike FHA's comparable scenario, there's no monthly MIP added on top. Over 30 years that's roughly $48K saved versus FHA's lifetime MIP.
$400,000 home, 5% down, 6.75% over 30 years, subsequent use 3.30%
- Home price $400,000
- Down payment 5%
- Interest rate 6.75%
- Loan term 30 years
- VA funding fee 3.3%
A $400K home with 5% down on a subsequent-use VA loan at 6.75% over 30 years: base loan $380,000, funding fee $12,540 (3.30%), total financed $392,540. Monthly payment is $2,546. Note the subsequent-use fee is significantly higher, service members considering a second VA loan should weigh whether holding the original loan as a rental and using a conventional loan for the next purchase is more cost-effective.
Frequently asked questions
Who is exempt from the VA funding fee?
Three groups don't pay the funding fee: veterans receiving VA disability compensation (any service-connected rating qualifies), surviving spouses of veterans who died in service or from a service-connected disability (receiving DIC), and Purple Heart recipients serving on active duty. Confirm your exemption status on your Certificate of Eligibility (COE), VA-approved lenders check this automatically. For exempt borrowers, set the funding-fee input to 0% to see your true payment.
Can I use a VA loan more than once?
Yes, VA entitlement is restorable. You can use it multiple times across your life as long as you have remaining entitlement, but the funding fee jumps from 2.15% to 3.30% for subsequent uses with no down payment (and from 1.50% to 3.30% with under 5% down, the tiered reductions don't apply to subsequent-use loans the same way). Full entitlement restores after the prior VA loan is paid off and the property sold, or via a one-time restoration if you refinance a VA loan into a non-VA loan. Always check current rules at va.gov.
Why does VA not require PMI?
The VA partially guarantees each loan to the lender, typically 25% of the loan amount up to a regional cap. This guarantee makes the lender whole if the borrower defaults, so the lender doesn't need private mortgage insurance to protect itself. The funding fee is what funds this guarantee program. So while you're paying something analogous to insurance via the funding fee, it's a one-time cost rolled into the loan, not a recurring monthly premium that lasts years like PMI or MIP.
Should I make a down payment on a VA loan even though 0% is allowed?
Sometimes. Putting down 5% drops your first-use funding fee from 2.15% to 1.50%, a savings of about $1,950 on a $300K loan, which partially offsets the $15K cash outlay. Putting down 10%+ drops it further to 1.25%. You'll also have lower monthly payments and better interest-rate offers from some lenders. But the math against keeping that cash invested or in an emergency fund usually favors 0% down for younger buyers. Run both scenarios in this calculator.