VA Loan Calculator

Choose the correct purchase scenario

Use this tool for a fixed-rate home purchase. Select first or subsequent use of the VA benefit, then indicate whether you have a verified funding-fee exemption. The calculator does not establish eligibility or confirm an exemption; those details must come from your lender and VA documentation.

Enter a down payment as a dollar amount or percentage of the purchase price. A down payment changes the base loan and can move a nonexempt purchase into a different funding-fee tier. Use your actual quoted note rate, and keep APR separate from the interest-rate field.

Finally, decide whether the funding fee is paid in cash or financed. Add annual property taxes and homeowners insurance plus monthly HOA dues. These costs remain relevant even when a loan has no monthly mortgage-insurance charge.

Continue with FHA Loan Calculator or Home Equity Loan Payment Calculator for the next calculation.

How the funding fee affects the loan

For the purchase-loan schedule currently shown by the U.S. Department of Veterans Affairs, the fee depends on benefit usage and down payment:

An applicable exemption reduces the modeled fee to zero. The purchase funding fee is calculated on the base loan amount, after the down payment and before the fee itself. It is not repeatedly applied to the financed balance.

Financing adds that fee to principal, so you also pay interest on it. Paying the fee upfront leaves the base loan unchanged. VA guidance distinguishes the funding fee from other purchase closing costs: the fee may be financed, while other closing-cost treatment follows separate rules. Do not assume every item can be rolled into this purchase mortgage.

Example: financing the funding fee

Consider a $400,000 home with no down payment, first use of the benefit, and no exemption. The 2.15% funding fee is $8,600. Financing it produces a $408,600 starting loan balance.

At an illustrative 6.5% fixed rate over 30 years, principal and interest are $2,582.63 per month. If annual property taxes are $4,800 and homeowners insurance is $1,500, the initial monthly total is $3,107.63, before any HOA dues.

The $8,600 fee is already inside the financed balance in this example. Adding it again as an upfront cash outlay would double-count it. Actual closing cash can include other fees, prepaid expenses, and reserves, so a zero down payment does not necessarily mean a zero-cash closing.

Compare cash requirements and total cost

Run the same quote with the fee paid in cash and financed. The lower payment in the cash-paid scenario reflects a smaller loan; it also requires more money at closing. Consider the effect on emergency savings and your expected ownership period.

If you are comparing quoted rates with different points, use the mortgage points calculator. An existing borrower considering a replacement mortgage can use the refinance break-even calculator for holding-period cost comparisons. A VA purchase fee schedule should not be applied automatically to an IRRRL or cash-out refinance.

What the result does not determine

This estimate does not verify your Certificate of Eligibility, entitlement, residual income, credit approval, property condition, or a lender's underwriting decision. It assumes a fixed note rate and regular monthly payments. Taxes and insurance can change after purchase, and lender-specific fees may affect the complete borrowing cost.

VA-backed purchase loans do not require monthly mortgage insurance, but they still involve housing expenses and may involve a funding fee. See VA's fee and closing-cost explanation when reviewing your quote.

Frequently asked questions