VA Mortgage Calculator · Practical guide
VA Mortgage Calculator With Funding Fee
See your real VA loan payment with the funding fee included — plus how the fee changes with your down payment.
At a glance
The Short Answer
On a $300,000 home with 0% down, a 6% rate, and 30-year term, the 2.15% first-use funding fee adds $6,450 to the loan, making the financed total $306,450 and the monthly principal-and-interest payment about $1,837. Because VA loans never charge PMI, that payment is the full picture before taxes and insurance.
Interactive tool
VA Mortgage Calculator
Enter your own values, then compare the result with the examples below.
How the Funding Fee Works
The VA funding fee is a one-time charge that replaces mortgage insurance. Most borrowers finance it into the loan rather than paying cash at closing, which is what the calculator above assumes. First-time-use rates for a purchase loan:
| Down Payment | First-Use Fee | Fee on $300,000 Purchase |
|---|---|---|
| 0% – 4.99% | 2.15% | $6,450 |
| 5% – 9.99% | 1.50% | $4,275 (on a $285,000 loan) |
| 10% or more | 1.25% | $3,375 (on a $270,000 loan) |
Subsequent use with less than 5% down jumps to 3.3%. Veterans receiving VA disability compensation and eligible surviving spouses are exempt — set the fee field to 0 if that applies to you.
Why No PMI Matters
A conventional loan with under 20% down typically adds private mortgage insurance of roughly 0.5%–1% of the loan per year — $125 to $250 a month on a $300,000 loan. VA loans skip PMI entirely, so the funding fee is usually recovered within the first few years through lower monthly costs.
Worked Example
$300,000 price, 0% down, 6% rate, 30 years, 2.15% fee: base loan $300,000, fee $6,450, total loan $306,450, monthly payment $1,837, total interest over 30 years roughly $355,000. Try 5% down instead: the fee drops to $4,275, the loan falls to $289,275, and the payment drops to about $1,734.
Frequently Asked Questions
Is the VA funding fee paid monthly?
No. It is a one-time charge paid at closing or financed into the loan balance. Financing it raises your monthly payment slightly because you borrow more.
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation, those entitled to disability pay, and eligible surviving spouses are exempt. Purple Heart recipients on active duty are also exempt.
Does a down payment reduce the VA funding fee?
Yes. For first-time use the fee falls from 2.15% with under 5% down to 1.5% at 5–9.99% down and 1.25% at 10% or more down.
Is the funding fee the same on a VA refinance?
No. IRRRL streamline refinances carry a 0.5% fee, while cash-out refinances use 2.15% for first use and 3.3% for subsequent use.