Skip to content
FinCalculate

VA Loan Calculator: Payment With the Funding Fee

This VA loan calculator adds the funding fee to your payment: on a $375,000 home with nothing down and first use, the fee is about $8,063, the loan about $383,063 and the payment about $2,852 a month with tax and insurance.

Example numbers

30 years

Assumptionsproperty tax rate 1.1%, home insurance $1,800

Result

The answerfrom an example

Your VA loan costs $2,852.33 a month with tax and insurance, the $8,062.50 funding fee added to the loan and no monthly mortgage insurance.

Worked on $375,000 home, nothing down, first use, 6.25% over 30 years. Change anything below to use yours.

Funding fee
$8,062.50
Loan amount
$383,062.50
Principal & interest
$2,358.58

The figures behind it

Funding fee
$8,062.50
2.15% of the $375,000 loan before the fee: first use, under 5% down.
Loan amount
$383,062.50
102.2% of the price, because the fee is added to the loan.
Principal & interest
$2,358.58
Includes $49.64 a month for the financed fee.
Cash for down payment and fee
$0
Other closing costs are not included.
Total interest
$466,028
Over the life of the loan, on top of the amount borrowed.
Interest on the financed fee
$9,810
Over the full term, on top of the $8,062.50 fee itself. Paying the fee in cash avoids it.
Monthly payment$2,852.33
  • Principal & interestThe loan payment itself.$2,359
  • Property taxEscrowed and paid on your behalf.$344
  • Home insuranceAlso escrowed.$150

What you still owe, and what it has cost

What you still owe, and what it has costBalance remaining ends at $0. Interest paid to date ends at $466K. Use the left and right arrow keys to read each year. The same figures appear in the payment schedule below.$0$100K$200K$300K$400K$500KToday51015202530●■● $0■ $466K

Years from today

Balance remainingInterest paid to date

Hover or tap the chart to read any year.

Payment scheduleShow
YearInterestPrincipalBalanceInterest to dateAll-in payment
1$1,974$385$378,574$23,814$2,852
2$1,949$410$373,796$47,340$2,852
3$1,923$436$368,712$70,558$2,852
4$1,895$464$363,300$93,449$2,852
5$1,865$494$357,540$115,992$2,852
6$1,833$526$351,410$138,165$2,852
7$1,799$559$344,885$159,943$2,852
8$1,763$595$337,941$181,302$2,852
9$1,725$634$330,550$202,214$2,852
10$1,684$674$322,683$222,650$2,852
11$1,641$718$314,311$242,581$2,852
12$1,595$764$305,400$261,973$2,852
13$1,545$813$295,916$280,792$2,852
14$1,493$865$285,822$299,001$2,852
15$1,438$921$275,078$316,560$2,852
16$1,378$980$263,644$333,429$2,852
17$1,315$1,043$251,474$349,562$2,852
18$1,248$1,111$238,521$364,912$2,852
19$1,177$1,182$224,736$379,429$2,852
20$1,101$1,258$210,063$393,060$2,852
21$1,020$1,339$194,447$405,746$2,852
22$934$1,425$177,826$417,429$2,852
23$842$1,517$160,136$428,042$2,852
24$744$1,614$141,308$437,517$2,852
25$641$1,718$121,270$445,781$2,852
26$530$1,829$99,942$452,756$2,852
27$412$1,946$77,242$458,360$2,852
28$287$2,071$53,083$462,503$2,852
29$154$2,205$27,369$465,093$2,852
30$12$2,348$0$466,028$2,854

What this result assumes

  • The yearly schedule takes each row from the twelfth month of that year; switch it to monthly to see every payment. The CSV export carries whichever view is showing.
  • Property tax is held at a fixed share of the purchase price and insurance at a fixed dollar amount. Both rise over time in reality, so the later years understate the true payment.
  • A VA loan has no monthly mortgage insurance. The one-time funding fee is the program’s charge instead.
  • The funding fee is added to the loan, so you borrow 102.2% of the price and pay interest on the fee for the whole term.

A VA loan has no monthly mortgage insurance, so the fee, your down payment and the rate are what move the number.

Methodology

Reviewed by Acun Özdilek

The funding fee

The VA funding fee on a purchase loan is 2.15% of the loan for first use with less than 5% down, and 3.30% if you have used a VA loan before. With 5% or more down it is 1.50%, and with 10% or more it is 1.25%, whichever use it is.

The fee is charged on the loan amount before the fee, not on the price. The tier is set by the down payment as a share of the purchase price (38 U.S.C. 3729(b)(4)). You can add the fee to the loan or pay it in cash at closing (38 U.S.C. 3729(a)(2)).

These rates apply to purchase loans closed on or after April 7, 2023 and before June 9, 2034 (38 U.S.C. 3729(b)(2)).

No monthly mortgage insurance

The VA guaranty protects the lender, so a VA loan has no monthly mortgage insurance at any down payment. A conventional loan works differently: the mortgage calculator adds private mortgage insurance when the down payment is small. An FHA loan charges an annual premium on top of its upfront one, which the FHA loan calculator shows.

The payment

The level monthly payment is the standard amortization formula, M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1], where P is the amount borrowed, n the term in months and r the annual rate divided by twelve. Property tax and home insurance are added on top, as they would be in escrow.

A financed fee is borrowed like the rest of the loan, so you pay interest on it for the whole term. On the default $375,000 home that adds $49.64 a month and $9,810 of interest over 30 years. With little or nothing down, the financed fee makes the loan larger than the price of the home.

For the same loan without the fee, use the loan calculator.

Assumptions

  • Purchase loans only. Interest rate reduction refinance loans (IRRRL) and cash-out refinances are not modelled.
  • The interest rate is fixed for the whole term.
  • VA entitlement and county loan limits are not applied.
  • Lender overlays, credit-based pricing and residual-income checks are not modelled. The debt-to-income ratio calculator covers the ratio lenders check.
  • Closing costs other than the funding fee are excluded.
  • Property tax is a constant share of the price and insurance a constant annual amount.
  • Whether you are exempt from the fee is decided by VA, not by this calculator.
  • Fee rates are as checked on 2026-10-06.

Sources

Common questions

How much is the VA funding fee?

For first use with less than 5% down it is 2.15% of the loan, and 3.30% after first use. With 5% or more down it is 1.50%, and with 10% or more 1.25%. On a $375,000 home with nothing down and first use, the fee is $8,062.50.

Who is exempt from the VA funding fee?

You don't pay the funding fee if you receive VA compensation for a service-connected disability; if you are eligible for that compensation but receive retirement or active-duty pay instead; if you are a surviving spouse receiving Dependency and Indemnity Compensation (DIC); if you are a service member with a proposed or memorandum rating before closing that says you are eligible for compensation from a pre-discharge claim; or if you are on active duty and show evidence of a Purple Heart on or before closing.

Should I finance the VA funding fee or pay it in cash?

On the default $375,000 home at 6.25%, financing the $8,062.50 fee adds $49.64 a month and $9,810 of interest over 30 years. Paying it in cash avoids that interest but needs $8,062.50 at closing. The better choice depends on what else that cash would be used for.

Does a VA loan have mortgage insurance?

No. A VA loan has no monthly mortgage insurance at any down payment. Its one-time funding fee is the program’s charge instead, and exempt borrowers pay neither. Compare an FHA loan, which charges an annual premium, and a conventional loan in the mortgage calculator.

How much does a down payment lower the VA funding fee?

At 5% down the rate falls to 1.50%: $5,343.75 on a $375,000 home, for a payment of $2,720.14 a month. At 10% down it is 1.25%: $4,218.75 and $2,597.77 a month. A $16,875 down payment, just short of 5%, still pays 2.15%: $7,699.69. To see how much home a payment buys, try the home affordability calculator.

What does a VA loan cost the second time?

With less than 5% down the fee rises to 3.30%: $12,375 on a $375,000 home, and the payment to $2,878.88 a month. With 5% or more down, subsequent use pays the same as first use.

Related calculators

All mortgage →