Transparent method
The formula
Worked example
Example inputs
How to interpret the result
A VA loan's total monthly payment depends on more than the mortgage rate. The financed funding fee gets added to the loan balance itself, so it's paid off over the full term with interest, not paid once upfront, and that raises both the balance and the monthly payment beyond what the base loan amount alone would suggest.
Before you rely on it
What to check
Confirm whether the funding fee was financed into the loan or paid in cash at closing. A financed fee raises the balance being amortized, changing every payment for the life of the loan.
The common error
Where people go wrong with VA loan calculator
Comparing a VA loan's monthly payment against a conventional loan using only the sale price as the amortized balance. The financed VA funding fee adds real dollars to that balance that a straight sale-price comparison misses.
Sensitivity evidence
How mortgage rate changes the estimated total monthly payment
| Mortgage rate | Estimated total monthly payment | Financed loan including fee | Estimated funding fee |
|---|---|---|---|
| 4.5% | $2,360 | $337,488 | $4,988 |
| 5.5% | $2,566 | $337,488 | $4,988 |
| 6.5%worked example | $2,783 | $337,488 | $4,988 |
| 7.5% | $3,010 | $337,488 | $4,988 |
| 8.5% | $3,245 | $337,488 | $4,988 |
Every input, tested
Which input moves the estimated total monthly payment most
| Input | Tested from | To | Estimated total monthly payment at each end | Swing |
|---|---|---|---|---|
| Home price | $315,000 | $385,000 | $2,559 to $3,008 | $449 (16%) |
| Mortgage rate | 5.5% | 7.5% | $2,566 to $3,010 | $444 (16%) |
| Loan term | 22.0 years | 38.0 years | $3,056 to $2,648 | $408 (15%) |
| Annual property tax | $5,400 | $6,600 | $2,733 to $2,833 | $100 (3.6%) |
| Annual home insurance | $1,620 | $1,980 | $2,768 to $2,798 | $30 (1.1%) |
| Down payment | $15,750 | $19,250 | $2,794 to $2,772 | $22 (0.8%) |
| Applicable VA funding-fee rate | 1.3% | 1.8% | $2,778 to $2,788 | $11 (0.4%) |
Two variables at once
Estimated total monthly payment by mortgage rate and home price
| Mortgage rate \ Home price | $280,000 | $350,000 | $420,000 |
|---|---|---|---|
| 4.5% | $2,000 | $2,360 | $2,720 |
| 5.5% | $2,163 | $2,566 | $2,970 |
| 6.5% | $2,334 | $2,783 | $3,232 |
| 7.5% | $2,513 | $3,010 | $3,507 |
| 8.5% | $2,699 | $3,245 | $3,791 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Home price | $350,000 |
| Down payment | $17,500 |
| Mortgage rate | 6.5% |
| Loan term | 30.0 years |
| Applicable VA funding-fee rate | 1.5% |
| Annual property tax | $6,000 |
| Annual home insurance | $1,800 |
| Estimated total monthly payment | $2,783 |
| Financed loan including fee | $337,488 |
| Estimated funding fee | $4,988 |
Where the inputs come from
Enter the price, the down payment (which can be zero), the rate and the term. VA loans require no down payment for eligible borrowers up to the county loan limit for lenders with full entitlement. Taxes and insurance come from local records and quotes, and the funding fee rate is set by the guidelines for your service history and down payment percentage.
Using the estimated total monthly payment in a real decision
Compare quotes from several VA lenders.
When the result stops applying
The property must be your primary residence and pass a VA appraisal. Seller concessions are capped at 4% beyond regular closing costs. Borrowers with remaining entitlement from a prior VA loan may have limits on no-down financing above the county limit. The tool does not compute VA residual income requirements.
What to compare it with
Get quotes from at least three VA lenders, since rates and fees vary. Ask each about the appraisal timeline and closing cost policies, and check that the home meets minimum property requirements. If you are near the county limit, ask how entitlement affects a down payment. Compare the VA payment with FHA and conventional quotes in the same session, because VA is often cheapest for eligible borrowers.
People also ask
Frequently asked questions
Do VA loans require a down payment?
Not for eligible borrowers with full entitlement, up to the county loan limit, so a VA loan can finance the full price. Borrowers with reduced entitlement or loans above the limit may still need a down payment.
Is there monthly mortgage insurance on a VA loan?
No. A VA loan has no monthly mortgage insurance, which is a major reason its payment runs lower than FHA or low-down conventional loans. The cost is a one-time funding fee, which is often financed into the loan.
Can I use a VA loan more than once?
Yes, if you have remaining entitlement, though the funding fee rate is higher for later use with no down payment.