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VA Loan Calculator

Calculate VA loan payments - no PMI required

Monthly Payment

$3,066

Funding Fee

$8,600

Total Interest

$497,095

Down Payment

$0

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VA Loan Benefits

No PMI required • No down payment needed • Competitive rates

Monthly Payment Breakdown

Principal & Interest$2,516
Property Tax$400
Home Insurance$150
Mortgage Insurance (PMI)$0 (VA!)
Total Monthly$3,066
Down Payment

$0

Funding Fee (2.15%)

$8,600

VA Loan Summary

Home Price$400,000
Base Loan Amount$400,000
Total Loan (incl. Fee)$408,600
Total Interest Paid$497,095
Total Cost of Home$1,103,695

Payment Breakdown

Principal & Interest$2,516
Property Tax$400
Home Insurance$150
Funding Fee$8,600

Frequently Asked Questions

Q

Who qualifies for a VA loan?

VA loans are available to: Active-duty military (90+ days), Veterans (90 days wartime, 181 days peacetime), National Guard/Reserves (6+ years or 90 days active duty), and surviving spouses of deceased veterans. You need a Certificate of Eligibility (COE) from the VA.

  • Active duty: 90+ continuous days of service
  • Veterans: 90 days wartime or 181 days peacetime
  • National Guard/Reserves: 6+ years or 90 days active duty
  • Surviving spouses of veterans who died in service or from service-connected disability
  • COE can be obtained online at VA.gov in minutes
Q

What is the VA funding fee?

The VA funding fee is a one-time payment (2.15%-3.3% for $0 down, 1.25%-1.5% with 5%+ down) that helps fund the VA loan program. It can be financed into the loan. Disabled veterans and Purple Heart recipients are exempt from the funding fee.

  • First-time use, $0 down: 2.15% of loan amount
  • First-time use, 5–9% down: 1.5% of loan amount
  • First-time use, 10%+ down: 1.25% of loan amount
  • Subsequent use, $0 down: 3.3% of loan amount
  • Exempt: disabled veterans, Purple Heart recipients, surviving spouses
Down PaymentFirst Use FeeSubsequent Use FeeFee on $400K Loan
0%2.15%3.3%$8,600 / $13,200
5–9%1.5%1.5%$5,700 / $5,700
10%+1.25%1.25%$4,500 / $4,500
Disabled veteran$0 (exempt)$0 (exempt)$0 / $0
Q

Is there really no down payment required?

Yes, VA loans allow 100% financing with no down payment required, up to the county loan limit. There are no loan limits for veterans with full entitlement. However, making a down payment reduces your funding fee and monthly payments.

  • 100% financing available — no down payment required
  • No loan limits for veterans with full entitlement (since 2020)
  • Partial entitlement: county loan limits apply (varies $766,550–$1,149,825)
  • 5% down reduces funding fee from 2.15% to 1.5%
  • 10%+ down further reduces funding fee to 1.25%
Q

Why is there no PMI on VA loans?

VA loans don't require private mortgage insurance (PMI) because the VA guarantees a portion of the loan. This can save you $100-$300+ per month compared to conventional loans with less than 20% down.

  • VA guarantees 25% of the loan to the lender
  • This guarantee replaces the need for PMI
  • PMI on conventional loans: typically 0.5–1.5% of loan amount annually
  • On a $400K loan, no PMI saves $167–$500/month
  • Conventional PMI drops at 20% equity; VA never has PMI at any LTV
FeatureVA LoanConventional (5% Down)FHA Loan
Down payment0%5–20%3.5%
PMI / MIPNone$167–$500/mo$200–$350/mo (permanent)
Funding fee2.15% (one-time)None1.75% upfront + 0.85%/yr
Typical rate6.0–6.5%6.25–7.0%6.0–6.75%
Min credit scoreNo VA min (lenders: 620+)620–680580 (3.5% down)
Q

What are VA loan rates compared to conventional?

VA loan rates are typically 0.25%-0.5% lower than conventional rates. Combined with no PMI and no down payment, VA loans often have the lowest total monthly cost of any mortgage option for eligible borrowers.

  • VA rates average 0.25–0.5% lower than conventional rates
  • On a $400K loan, 0.25% lower rate saves ≈$60/month ($21,600 over 30 years)
  • Combined with no PMI: total monthly savings of $225–$550 vs conventional
  • VA loan rates are available with $0 down (conventional needs 20% for best rates)
  • VA allows rate reduction refinance (IRRRL) with minimal paperwork
Q

Can I use a VA loan more than once?

Yes, VA loan benefits can be used multiple times. Your entitlement is restored when you sell and pay off a VA loan. You can even have multiple VA loans simultaneously in some cases. Subsequent use has a higher funding fee (3.3% vs 2.15% for $0 down).

  • Entitlement restores when you sell and pay off a VA loan
  • Subsequent use funding fee increases to 3.3% (from 2.15%) for $0 down
  • Two VA loans at once possible if you have remaining entitlement
  • VA IRRRL (streamline refinance) available for existing VA loans
  • No limit on total number of times you can use VA loan benefit

Example Calculations

1VA Loan with $0 Down (First-Time Use)

Inputs

Home Price$400,000
Down Payment0%
Interest Rate6.25%
Loan Term30 years
Property Tax Rate1.2%
Home Insurance$1,800/yr
Service TypeRegular Military, First-Time Use

Result

Monthly Payment$3,066
Loan Amount$400,000
Funding Fee (2.15%)$8,600
Total Loan Amount$408,600
Monthly P&I$2,516
Total Interest Paid$497,095

Loan = $400,000 with $0 down. Funding fee = $400,000 × 2.15% = $8,600 (financed). Total loan = $408,600. Monthly P&I = $408,600 at 6.25% over 360 months = $2,516. Property tax = $400, insurance = $150. Total = $2,516 + $400 + $150 = $3,066/mo. No PMI required.

2VA Loan with 5% Down Payment

Inputs

Home Price$325,000
Down Payment5% ($16,250)
Interest Rate6.0%
Loan Term30 years
Property Tax Rate1.1%
Home Insurance$1,500/yr
Service TypeRegular Military, First-Time Use

Result

Monthly Payment$2,302
Loan Amount$308,750
Funding Fee (1.5%)$4,631
Total Loan Amount$313,381
Monthly P&I$1,879
Total Interest Paid$363,015

Down payment = $325,000 × 5% = $16,250. Loan = $308,750. Funding fee = $308,750 × 1.5% = $4,631 (reduced from 2.15% with 5% down). Total loan = $313,381. Monthly P&I = $1,879. Property tax = $298, insurance = $125. Total = $2,302/mo.

Formulas Used

VA Funding Fee

Funding Fee = Loan Amount × Funding Fee Rate

One-time fee financed into the loan. Rate depends on down payment, first-time vs subsequent use, and service type. Disabled veterans are exempt.

Where:

Loan Amount= Home price minus down payment
Funding Fee Rate= 2.15% (first use, 0% down), 1.5% (5–10% down), 1.25% (10%+ down), 3.3% (subsequent, 0% down)

Monthly Principal & Interest

M = (Loan + Funding Fee) × r(1 + r)^n / ((1 + r)^n − 1)

Monthly P&I is calculated on the total loan amount including the financed funding fee.

Where:

M= Monthly principal & interest payment
r= Monthly interest rate (annual rate / 100 / 12)
n= Total payments (years × 12)

Total Monthly Payment

Total = P&I + Property Tax/12 + Insurance/12

VA loans have no PMI. Total payment is P&I plus taxes and insurance only.

Where:

P&I= Monthly principal & interest (on total loan incl. funding fee)
Property Tax= Home price × tax rate / 12
Insurance= Annual homeowner's insurance / 12

VA Loan Guide for Veterans and Military Families

1

Why VA Loans Are the Best Mortgage Benefit Available

$0 down payment and $0 PMI make VA loans the most powerful mortgage option for eligible borrowers. A veteran buying a $400,000 home with zero down avoids the $80,000 down payment that a conventional loan would need for the same PMI-free benefit. Combined with interest rates 0.25–0.5% below conventional averages, VA borrowers save $225–$550 per month compared to a conventional borrower putting 5% down.

The VA guarantees 25% of the loan to the lender, which replaces the need for private mortgage insurance. On a $400,000 conventional loan with 5% down, PMI costs $167–$500 per month until the borrower reaches 20% equity (typically 7–10 years). VA borrowers never pay PMI at any loan-to-value ratio, saving $14,000–$60,000 over the life of the loan.

Since 2020, there are no loan limits for veterans with full entitlement. Previously, the conforming loan limit (currently $766,550 in most counties) capped VA loan amounts. Now, qualified veterans can borrow $1 million or more with $0 down, though lenders still apply their own credit and income requirements.

Monthly Cost: VA vs Conventional vs FHA ($400K Home)$3,500$2,500$1,500$500$3,066P&I: $2,516Tax: $400Ins: $150PMI: $0VA Loan$3,453P&I: $2,528Tax: $400Ins: $150PMI: $375Conv. 5%$3,330P&I: $2,463Tax: $400Ins: $150MIP: $317FHA 3.5%VA (0% down)Conventional (5% down)FHA (3.5% down)
2

VA Funding Fee: Rates, Exemptions, and Strategies

2.15% is the first-time-use funding fee for a VA loan with zero down payment, adding $8,600 to a $400,000 loan. The fee is a one-time charge that funds the VA loan program and can be financed into the loan (increasing your monthly payment by approximately $53). Subsequent uses increase the fee to 3.3% for $0 down, adding $13,200 on the same loan.

Down payments significantly reduce the funding fee. Putting 5% down drops the fee from 2.15% to 1.50%, saving $2,600 on a $400,000 home. At 10%+ down, the fee falls to 1.25%. For borrowers with available cash, this is often a better use of funds than a larger down payment on a conventional loan, since VA loans have no PMI regardless.

Disabled veterans and Purple Heart recipients are completely exempt from the funding fee, saving $8,600–$13,200 on a typical loan. Surviving spouses of veterans who died in service or from service-connected disabilities also receive the exemption. Even a 10% VA disability rating qualifies for full exemption.

*Rates for Regular Military; Reserves/National Guard add 0.15% on first use
Down PaymentFirst UseSubsequent UseFee on $400K
0% down2.15%3.3%$8,600 / $13,200
5–9% down1.50%1.50%$5,700
10%+ down1.25%1.25%$4,500
Disabled veteranExempt ($0)Exempt ($0)$0

Tip: If you have any service-connected disability, apply for your VA disability rating before closing — even a 10% rating exempts you from the entire funding fee.

3

VA Loans vs. Conventional and FHA: Full Comparison

0.25–0.5% lower interest rates give VA loans an immediate monthly advantage over conventional mortgages. On a $400,000 home, the VA rate of 6.0–6.25% versus a conventional 6.5–7.0% saves $60–$120/month in interest alone. When combined with no PMI ($167–$500/month saved) and no down payment, the total monthly savings can exceed $550.

FHA loans require 3.5% down ($14,000 on a $400,000 home) and charge both an upfront mortgage insurance premium (1.75%, or $6,755) and annual MIP (0.85%, or $272/month). Unlike conventional PMI, FHA MIP never cancels for loans with less than 10% down — you pay it for the life of the loan. VA loans have no equivalent ongoing insurance cost.

Conventional loans offer the most flexibility in property types and investment properties, but require 20% down to avoid PMI. For a primary residence purchase by an eligible veteran, VA loans almost always result in the lowest total monthly cost. The FHA loan calculator and mortgage calculator can model specific scenarios side by side.

FeatureVA LoanConventionalFHA
Down payment0%3–20%3.5%
PMI / MIPNone$167–$500/mo$272/mo (permanent)
Typical rate6.0–6.25%6.5–7.0%6.0–6.5%
Min credit scoreNo VA min (lenders: 620+)620–680580
Upfront fee2.15% (waivable)None1.75%
4

Eligibility, Entitlement, and Reuse

90 days of active-duty service during wartime is the minimum for VA loan eligibility, or 181 days during peacetime. National Guard and Reserve members need 6 years of service or 90 days of active duty. The Certificate of Eligibility (COE) can be obtained online at VA.gov in minutes through the eBenefits portal, or your lender can pull it directly.

Full entitlement means no loan limits — you can borrow any amount with $0 down (subject to lender approval). Partial entitlement applies if you have an existing VA loan that has not been repaid, in which case county conforming loan limits ($766,550 to $1,149,825 depending on location) cap the guaranteed amount.

VA loan benefits can be used multiple times. When you sell a home and pay off the VA loan, your entitlement is fully restored. You can even carry two VA loans simultaneously if you have remaining entitlement. The only cost of reuse is the higher funding fee: 3.3% versus 2.15% for $0-down subsequent-use loans.

  • Active duty: 90+ days service (wartime) or 181+ days (peacetime)
  • Veterans: discharged under other than dishonorable conditions
  • National Guard / Reserves: 6+ years of service or 90 days active duty
  • Surviving spouses: of veterans who died in service or from service-connected disability
  • Full entitlement: no loan limits, $0 down on any amount the lender approves
  • Entitlement restoration: automatic when prior VA loan is fully repaid
5

How to Use the VA Loan Calculator

6 inputs produce a complete VA loan breakdown: home price, down payment, interest rate, term, property tax rate, and annual insurance. The calculator automatically applies the correct funding fee based on your down payment and first-time or subsequent-use status, then finances the fee into the total loan amount for accurate monthly payment estimates.

Use the compare mode to evaluate different down payment scenarios side by side. Entering 0% vs. 5% down on a $400,000 home shows how $20,000 upfront reduces both the funding fee and monthly payment, helping you decide whether the cash is better spent on a down payment or kept in reserve.

  1. 1

    Enter home price and down payment

    Start with $0 down to see the full VA benefit. Then try 5% and 10% to see funding fee and payment reductions.

  2. 2

    Set interest rate and term

    VA rates average 6.0–6.25% for 30-year terms in 2026. Check VA.gov or your lender for current rates.

  3. 3

    Select service type and usage

    Choose Regular Military, Reserves, or National Guard. First-time vs. subsequent use affects the funding fee rate.

  4. 4

    Add property tax and insurance

    Enter your county’s property tax rate (typically 0.5–2.0%) and annual homeowner’s insurance ($1,200–$2,400/year).

  5. 5

    Review total monthly payment

    The result shows P&I, taxes, insurance, and funding fee impact separately. Compare scenarios to find the optimal structure.

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Last Updated: Mar 26, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

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