VA Loan Calculator

VA loans: how the $0-down benefit works

For a standard VA purchase loan, the required down payment is $0 (0%), provided you meet the loan limits and have sufficient entitlement — one of the program's primary benefits: eligible veterans, active-duty service members, and certain surviving spouses can buy with no down payment and no PMI.

A down payment may still be required when: (1) the price exceeds the VA appraised value (you pay the difference in cash); (2) you have only partial/remaining entitlement above the county conforming limit; (3) you're using a VA loan for anything other than a primary residence (not allowed — multi-unit up to 4 is fine if you live in one unit). Seller concessions can cover closing costs/prepaids but not a required down payment.

Even with $0 down there are costs: a one-time VA Funding Fee (usually financed into the loan) and closing costs (typically 2%–5%, often negotiable for the seller to pay). On the current statutory schedule (in effect since April 2023), a purchase with under 5% down carries a 2.15% fee on first use of the benefit or 3.30% on subsequent use; putting 5–9.99% down lowers it to 1.50% and 10%+ down to 1.25%. A VA cash-out refinance uses the same 2.15%/3.30% by use, and an IRRRL streamline refinance of an existing VA loan is a flat 0.50%. The fee is waived entirely for veterans receiving VA disability compensation, Purple Heart recipients, and eligible surviving spouses — the calculator above asks your status and applies the right figure. Lender overlays vary — a VA-specialized lender can confirm your specific situation.

A closer look at each input

Every field in the calculator above changes the estimate in a specific way. Here is what each one represents, in plain English.

What the VA funding fee is

The funding fee is a one-time charge paid to the Department of Veterans Affairs. It is what keeps the loan program running without monthly mortgage insurance, which is a large part of why VA financing can cost less month to month than a low-down-payment conventional loan.

The percentage depends on the loan purpose, the down payment, and whether the benefit has been used before — broadly from 0.5% on a streamline refinance up to 3.3% on a subsequent-use cash-out. It is commonly financed into the loan rather than paid at closing, which is why the loan amount in the results can exceed the purchase price.

Some borrowers owe nothing at all: veterans receiving VA disability compensation, Purple Heart recipients, and eligible surviving spouses are exempt. Eligibility and the current fee table are published by the VA — see VA.gov for the official rules.

What an amortization schedule shows

Each payment is split between interest (the cost of borrowing) and principal (the balance itself). Early on the split leans heavily toward interest, because interest is charged on a large balance. As the balance falls, more of the same payment goes to principal and the loan pays down faster each year.

The Payments Over Time tab shows that shift as a curve; the Amortization Schedule tab lists it year by year. Nothing about the monthly payment changes — only where the money goes inside it.

Payment estimate or affordability: two different questions

This tool answers "what would the payment be on a home at this price?" It starts from a number you already have in mind.

That is a different question from "what price range makes sense for me?", which starts from income and existing debts instead. If you are still working out the range, that question comes first — estimate affordability, then come back here to price specific homes.

What moves a VA payment the most

In rough order of impact: the price of the home, the interest rate, the loan term, and then the non-loan costs — property taxes, homeowners insurance, HOA dues. In high-insurance markets those last items can rival a meaningful slice of the payment, which is why they are editable above rather than buried in an assumption.

Ways a VA payment can come down

• Put something down. Not required, but it lowers the balance and can reduce the funding-fee percentage at the 5% and 10% thresholds.
• Adjust the target price. A home that meets most of the list rather than all of it changes the payment more than most other levers.
• Consider the term. A longer term lowers the monthly figure while increasing total interest. The schedule tab shows both sides of that trade.
• Strengthen credit before shopping. The VA sets no minimum, but lenders price by band, and the band is set long before an application.
• Shop the insurance. It is the one line here that is competitively priced and not set by the loan at all.

About the rate shown

The rate in this calculator is illustrative and labelled as such throughout. MortEdu is an educational publisher — we do not quote rates, originate loans, or price your file. Replace it with a figure from a real quote to see numbers that match your situation.