VA Loan Calculator

Funding Fee Calculation

The VA funding fee is a one-time charge that replaces ongoing monthly mortgage insurance. The rate depends on three things: your down payment, whether it's your first VA loan use, and whether you're exempt due to disability.

| Down Payment | First Use | Subsequent Use | |---|---|---| | < 5% | 2.15% | 3.30% | | 5% – 9.99% | 1.50% | 1.50% | | ≥ 10% | 1.25% | 1.25% |

Disability-exempt veterans: 0% in all categories.

When rolled into the loan:

Total Loan = Base Loan + (Base Loan × Funding Fee Rate)

Monthly Payment

Your monthly payment has three components — no MIP or PMI:

Monthly P&I = amortize(Total Loan, Rate, Term)
Monthly Tax  = Annual Property Tax ÷ 12
Monthly Insurance = Annual Homeowners Insurance ÷ 12
Total Monthly = P&I + Tax + Insurance

Conventional PMI Comparison

The calculator estimates what a conventional borrower at the same LTV would pay in PMI using the industry-typical rate of 0.85% annually. When your VA loan LTV exceeds 80%, this PMI amount appears as a monthly savings line — the real dollar benefit of the VA benefit's no-monthly-insurance advantage.

1. Comparing VA Loan to Conventional or FHA

Run this calculator alongside the FHA loan calculator and the mortgage payment calculator to compare total monthly costs across loan types for the same home price. The key metrics to compare: total monthly payment, total mortgage insurance paid over the stay period, and total interest over the full term.

2. Deciding How Much to Put Down

VA loans require no down payment, but putting down 5% or 10% reduces the funding fee and lowers your loan balance. Use the down payment toggle to run three scenarios — 0%, 5%, 10% — and compare the funding fee savings against the cash you'd spend. Often, keeping more cash liquid (for reserves, renovations, or investing) outweighs the modest funding fee savings.

3. Determining Whether Disability Exemption Applies

If you're in the process of filing for VA disability compensation, you may be eligible for a funding fee refund after your claim is approved, even if the loan has already closed. Toggle the exemption switch on to see exactly how much the exemption is worth for your loan size — this can be $5,000–$15,000 that you may be owed.

4. Planning a Second VA Loan

If you've used a VA loan before, the subsequent-use funding fee applies (3.30% at 0% down vs. 2.15% first use). However, if you've paid off your prior VA loan and sold the property, your entitlement is typically restored and the first-use rate applies again. Toggle between first and subsequent use to see the cost difference and confirm which applies to your situation.

5. Modeling an IRRRL (VA Streamline Refinance)

If you have an existing VA loan and want to lower your rate through a VA Interest Rate Reduction Refinance Loan (IRRRL), the funding fee drops to 0.50%. Enter your current balance as the home price and $0 as the down payment, then note that the IRRRL funding fee rate (0.50%) is lower than the purchase rates shown — verify the exact IRRRL payment with your lender.