VA Mortgage Calculator
$
0.00%
5.50%
Monthly Payment$2,029.99
Funding Fee$7,525.00
Total Interest$380,795.55
Total Cost$730,795.55
total cost$730.8K
Principal$350,000.00
Interest$373,270.55
Funding Fee$7,525.00
VA loans let eligible veterans and service members buy a home with no down payment, but most borrowers pay a one-time VA funding fee that is usually rolled into the loan. This calculator picks the correct funding-fee rate from your down payment and whether this is your first VA loan, adds the fee to the financed balance, and amortizes the total to show your monthly payment and lifetime cost.
Formula
financed = (price − down) × (1 + feeRate); M = financed · r(1 + r)^n / ((1 + r)^n − 1)
- price − down
- Base loan amount after the down payment
- feeRate
- VA funding-fee rate based on down payment and first-time use
- r
- Monthly interest rate = annual rate ÷ 12 ÷ 100
- n
- Number of payments = term in years × 12
How it works
- Enter the home price, your down payment percentage, the interest rate, the loan term in years, and whether this is your first time using a VA loan.
- The calculator chooses the funding-fee rate from the down payment: 1.25% if you put down 10% or more, 1.5% for 5% to under 10%, and for under 5% it is 2.15% for first-time use or 3.3% for subsequent use.
- It adds the funding fee to the base loan (price minus down payment), amortizes that financed amount with the standard mortgage formula, and reports the monthly payment, funding fee, total interest, and total cost.
Worked example
A $350,000 home with no down payment, a 6% rate, a 30-year term, and first-time VA loan use.
- Down payment is 0%, so the base loan is the full $350,000 and the funding-fee rate is 2.15%.
- Funding fee: 350,000 × 2.15% = $7,525, making the financed loan 350,000 + 7,525 = $357,525.
- Amortize $357,525 at 6% over 360 months: monthly payment ≈ $2,143.54.
- Total payments: 2,143.54 × 360 = $771,675.49; total interest: 771,675.49 − 350,000 = $421,675.49.
Monthly payment about $2,143.54, funding fee $7,525, total interest about $421,675.49, total cost about $771,675.49.
Frequently asked questions
- Why is the funding fee higher with no down payment?
- The VA funding fee offsets the cost of the loan guarantee to taxpayers, and a smaller down payment means more risk. With less than 5% down the rate is 2.15% for a first VA loan and rises to 3.3% on later uses, while putting 5% or 10% down lowers it.
- Can the funding fee be waived?
- Yes. Veterans receiving VA disability compensation, certain surviving spouses, and some Purple Heart recipients are exempt from the funding fee. This calculator always applies the fee, so reduce your inputs accordingly if you qualify for an exemption.
- Does this include property tax, insurance, or PMI?
- No. It covers principal, interest, and the financed VA funding fee. VA loans do not require private mortgage insurance, but you should budget separately for property tax, homeowners insurance, and any HOA dues.