How to use the VA loan payment calculator
Our VA loan payment calculator estimates the monthly payment, funding fee and cash to close for a VA-backed mortgage. It is designed to show how the payment changes when the loan amount, rate, term, down payment or funding-fee treatment changes.
Use the sliders for quick estimates or enter exact numbers where the calculator allows. The Monthly Payment tab shows the estimated recurring payment. The Funding Fee tab isolates the VA funding fee. The Cash to Close tab shows how the down payment, costs and financed funding fee can affect the amount due at closing.
The most important VA-specific settings are first use vs. subsequent use, funding-fee exemption, whether the fee is financed and whether the loan term is 15 or 30 years. Each setting can change the estimated payment or loan balance.
What goes into a VA loan monthly payment
A VA loan payment usually includes principal, interest, property taxes and homeowners insurance. VA loans do not require monthly mortgage insurance, which is one of the major structural differences between VA financing and some low-down-payment FHA or conventional loans.
Principal and interest
Principal is the amount borrowed. Interest is the cost of borrowing that money. The principal and interest payment depends on the loan amount, interest rate and repayment term. A longer term usually lowers the monthly payment but increases total interest over time.
Property taxes and insurance
Property taxes and homeowners insurance are often escrowed, meaning they are collected monthly as part of the housing payment and paid by the loan servicer when due. The calculator estimates these items as percentages or monthly inputs, but the actual numbers come from the county, insurer and property details.
What is not included
Some housing costs are not included in a national VA payment estimate. Homeowners association dues, flood insurance, supplemental insurance policies, maintenance and utilities can affect the actual cost of owning the home.
The VA funding fee, explained
The VA funding fee is a one-time charge that helps support the VA loan program. It is charged as a percentage of the loan amount unless the borrower is exempt.
For purchase and construction loans closing on or after April 7, 2023, and before Nov. 14, 2031, the VA funding-fee schedule lists these rates for many borrowers:
| Down Payment |
First Use Funding Fee |
Subsequent Use Funding Fee |
| Less than 5% |
2.15% |
3.30% |
| 5% to 9.99% |
1.50% |
1.50% |
| 10% or more |
1.25% |
1.25% |
The VA funding fee is based on the loan type, military category, whether it is the first or later use of the VA benefit and down payment amount. The VA fee table for loans closing on or after April 7, 2023, lists the current purchase-loan percentages.
First use vs. subsequent use
First use generally means the borrower is using the VA loan benefit for the first time. Subsequent use generally means the borrower has used the benefit before. Paying off a prior VA loan does not automatically make a later VA loan first use again for funding-fee purposes.
Who is exempt from the funding fee
Some borrowers pay no VA funding fee. The VA lists exemptions for certain veterans receiving service-connected disability compensation, veterans eligible for compensation but receiving retirement or active-duty pay, certain surviving spouses and active-duty service members who provide evidence of receiving the Purple Heart before closing. Exemption status should be confirmed through the Certificate of Eligibility.
Financing the funding fee vs. paying it at closing
The VA funding fee can often be paid at closing or financed into the loan. Financing the fee reduces cash needed at closing, but it increases the loan balance and means interest is paid on the fee over time.
For example, a 2.15% funding fee on a $400,000 loan is $8,600. If that fee is financed, the new loan balance increases and the monthly principal and interest payment rises. The calculator can show how the payment changes when the fee is financed instead of paid upfront.
How down payment changes the funding fee
The VA funding fee does not change smoothly with every dollar of down payment. It changes at specific down-payment tiers. For many VA purchase loans, the fee drops at 5% down and again at 10% down.
| $400,000 Purchase Example |
Base Loan Amount |
First Use Funding Fee Rate |
Estimated Funding Fee |
| 0% down |
$400,000 |
2.15% |
$8,600 |
| 5% down |
$380,000 |
1.50% |
$5,700 |
| 10% down |
$360,000 |
1.25% |
$4,500 |
This table is for educational purposes only. Actual funding-fee treatment depends on VA rules, exemption status, loan type and final loan amount.
VA loan payment vs. FHA and conventional
The structural difference between VA, FHA and conventional payments is mortgage insurance. VA loans do not require monthly mortgage insurance. FHA loans generally include upfront mortgage insurance and annual mortgage insurance. Conventional loans may include private mortgage insurance when the down payment is below 20%.
| Loan Type |
Upfront Program Cost |
Monthly Mortgage Insurance |
| VA |
VA funding fee unless exempt. |
No monthly mortgage insurance. |
| FHA |
Upfront mortgage insurance premium. |
Annual mortgage insurance premium paid monthly. |
| Conventional |
No standard upfront mortgage insurance charge. |
Private mortgage insurance may apply below 20% down. |
Cash to close on a VA loan purchase
Even with no down payment and a financed funding fee, VA borrowers may still need cash at closing. VA loan closing costs can include appraisal fees, title and settlement fees, prepaid taxes, homeowners insurance, prepaid interest and escrow deposits.
The VA generally limits lender origination charges and also limits certain fees that a veteran can pay. Seller concessions may also help offset some costs, subject to VA rules and transaction limits. The Cash to Close tab in the calculator helps show how these inputs affect the final estimate.
When a VA loan tends to make sense
The VA loan tends to work well for borrowers who have eligible service, can provide a Certificate of Eligibility and want a mortgage structure without monthly mortgage insurance. It can also be useful for borrowers who want to preserve cash by putting little or nothing down.
The VA structure may be especially attractive for borrowers exempt from the funding fee. For borrowers making a large down payment, the comparison can be more nuanced because a conventional loan at 20% down would generally avoid PMI as well.
Frequently asked questions
Is the VA funding fee tax-deductible?
Tax treatment depends on current IRS rules and the borrower’s situation. IRS Publication 936 discusses mortgage insurance and home mortgage interest deduction rules. A tax professional can explain how the rules apply to a specific return.
What is the difference between first use and subsequent use?
First use generally applies to the first time a borrower uses the VA loan benefit. Subsequent use applies after the benefit has been used before. Restoration of entitlement does not generally reset the funding-fee tier to first use.
Can a borrower avoid the VA funding fee entirely?
Yes, but only through an exemption. Common exemptions include certain service-connected disability, eligible surviving-spouse status and active-duty Purple Heart status. The Certificate of Eligibility should confirm exemption status.
Does putting 20% down on a VA loan make sense?
It is allowed, but it is uncommon. A larger down payment can reduce the funding fee and loan amount, but a 20% down payment does not create a separate VA-specific mortgage insurance benefit because VA loans already do not require monthly mortgage insurance.
How does the VA loan limit work in 2026?
Eligible borrowers with full entitlement generally do not have a county loan limit for VA-backed loans. Borrowers with remaining entitlement after another VA loan may be affected by county loan limits and entitlement calculations.
Can a borrower use a VA loan more than once?
Yes. Eligible borrowers can use the VA benefit more than once. A later VA loan generally follows the subsequent-use funding-fee schedule unless an exemption applies.
What to review next
Before comparing VA loan options, review the estimated monthly payment, funding fee treatment, cash to close and whether the borrower is exempt from the funding fee. The most useful comparison uses the same home price, down payment, rate, taxes and insurance assumptions across loan types.
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