VA Mortgage Calculator — funding fee, loan & payment

How it works

Two steps. The fee: VA's schedule sets a rate by down-payment tier and prior use — the fee "applies only to the loan amount, not the purchase price of the home" (VA), so F = loan × tier rate, and exempt borrowers pay nothing. The payment: the fee is modeled as financed, the common structure, so M = (loan + F)·r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1). There is no PMI line at any down payment — the structural difference from a conventional loan, which CFPB says "you might be required to buy" private mortgage insurance on "with a down payment of less than 20 percent." The schedule below is the pack this page computes from, reviewed against VA.gov.

VA funding fee — purchase loans (VA schedule, read 2026-07-21)

Source: U.S. Department of Veterans Affairs, funding fee and closing costs page. Exemptions include veterans receiving VA compensation for a service-connected disability, eligible surviving spouses receiving Dependency and Indemnity Compensation, and active-duty Purple Heart recipients.

Worked example

Take the headline case: a $400,000 home with nothing down, first VA loan use. The loan is $400,000, the tier rate is 2.15% (VA's first-use, under-5% tier), so the funding fee is 0.0215 × $400,000 = $8,600. Financed on top, the loan becomes $408,600, and at 6.5% over 30 years this calculator amortizes it to about $2,583 a month — the fee and rate are VA's published schedule; the payment is this calculator's amortization of the financed total.

Frequently asked questions

What is the VA funding fee?

A one-time charge on VA loans, set as a percentage of the loan amount by your down payment and prior use — 2.15% for a first-use loan under 5% down, down to 1.25% at 10% or more, and 3.3% for a repeat use under 5% (VA schedule above). It funds the loan program and replaces monthly mortgage insurance entirely.

Who is exempt from the funding fee?

Per VA: veterans and service members receiving VA compensation for a service-connected disability, those eligible who receive retirement or active-duty pay instead, eligible surviving spouses receiving Dependency and Indemnity Compensation, pre-discharge claim recipients, and active-duty Purple Heart recipients. The exempt toggle removes the fee from every figure.

Do VA loans require a down payment or PMI?

No down payment is required on most VA purchase loans, and no private mortgage insurance exists at any down payment — the funding fee is the program's cost instead. A down payment still helps: crossing 5% or 10% lowers the fee tier and shrinks the amortized loan.

Is the funding fee paid in cash or financed?

Either; this page models it financed — added to the loan and amortized, the common choice at closing. Paying it in cash keeps the loan at the bare amount: compare by setting the exempt toggle on and adding the fee mentally as a one-time cash cost.

Why is the fee higher the second time?

VA's schedule sets after-first-use rates higher below 5% down — 3.3% against 2.15% — while the 5%-and-up tiers match. The schedule is statutory: the table above is the current published version, and the pack this page computes from is re-reviewed on a schedule.

How is this different from an FHA loan?

Both are government-backed with low down payments, but the cost structures differ: FHA charges upfront and ongoing mortgage insurance premiums; VA charges the one-time funding fee and no monthly insurance. Eligibility also differs — VA loans require qualifying service. The FHA calculator models the other structure.

How accurate is this, and what does it exclude?

The fee tiers are VA's published schedule applied exactly; the payment is standard amortization of the financed total. It excludes property tax, homeowners insurance, closing costs beyond the fee, refinance fee rates (different schedule), and lender-specific rate pricing. Confirm your tier and exemption on your VA certificate of eligibility and Loan Estimate.