Reviewed by: David Chen, CFA
Certified Financial Analyst specializing in Veteran Home Loans.
This calculator provides a comprehensive estimate of your monthly VA mortgage payment, factoring in principal, interest, the unique VA Funding Fee, property taxes, insurance, and HOA dues.
VA Mortgage Payment Calculator
Detailed Calculation Breakdown
Click ‘Calculate Payment’ to see the detailed steps.
VA Mortgage Payment Formula
Total Monthly Payment (T) = Principal & Interest (P&I) + Property Tax + Home Insurance + HOA Fees
Where P&I is calculated using the standard amortization formula:
$$M = P_{total} \times \frac{i(1+i)^n}{(1+i)^n – 1}$$
Where:
$P_{total}$ = Loan Amount + Financed Funding Fee
$i$ = Monthly Interest Rate (Annual Rate / 1200)
$n$ = Total number of payments (Term in Years × 12)
Variables Explained
- Loan Amount ($): The principal amount borrowed, excluding any down payment.
- Annual Interest Rate (%): The yearly rate charged on the loan balance.
- Loan Term (Years): The duration of the loan, typically 15 or 30 years.
- VA Funding Fee (%): A mandatory, one-time fee paid to the VA that is usually financed into the loan. It supports the VA loan program.
- Annual Property Tax ($): The yearly cost of property taxes, which is often escrowed (paid monthly).
- Annual Home Insurance ($): The yearly premium for homeowners insurance, also typically escrowed.
- Monthly HOA Fees ($): Any mandatory monthly fees paid to a Homeowners Association (HOA).
Related Calculators
- FHA Mortgage Payment Estimator
- Conventional Loan Down Payment Calculator
- Mortgage Refinance Break-Even Tool
- Debt-to-Income (DTI) Ratio Calculator
What is a VA Mortgage Payment Calculator?
A VA Mortgage Payment Calculator is a specialized tool designed for Veterans, active-duty service members, and eligible surviving spouses. It calculates the total monthly housing cost by combining the typical components of a mortgage—Principal and Interest (P&I)—with the mandatory escrow items like property taxes and homeowners insurance, and the unique addition of the VA Funding Fee.
Unlike conventional calculators, the VA tool specifically includes the VA Funding Fee, which is often rolled into the loan principal, increasing the total loan amount used for P&I calculation. This fee replaces the need for Private Mortgage Insurance (PMI), a major cost saving for VA borrowers. Understanding this total cost is crucial for budgeting and determining affordability.
How to Calculate Your VA Mortgage Payment (Example)
- Determine Total Financed Principal: Start with the Loan Amount and calculate the dollar amount of the VA Funding Fee. Add the fee to the Loan Amount to get the total principal used for amortization.
- Calculate Monthly P&I: Use the amortization formula with the total financed principal, the monthly interest rate (Annual Rate / 1200), and the total number of payments (Term in Years × 12).
- Calculate Monthly Taxes & Insurance: Divide the Annual Property Tax and Annual Home Insurance amounts by 12 to get their respective monthly costs (the escrow portion).
- Add Monthly HOA: Take the Monthly HOA Fees (if applicable).
- Sum the Components: Add the Monthly P&I, Monthly Taxes, Monthly Insurance, and Monthly HOA Fees together to determine the Estimated Total Monthly Payment.
Frequently Asked Questions (FAQ)
What is the VA Funding Fee? The VA Funding Fee is a one-time fee paid to the Department of Veterans Affairs. It helps offset the costs of the VA loan program and eliminates the requirement for monthly Private Mortgage Insurance (PMI). The fee varies based on down payment size and whether it’s your first or subsequent use of the VA loan benefit.
Are VA loans always 0% down? VA loans are famous for allowing 0% down payments for most eligible borrowers. However, you are permitted to make a down payment, which can result in a lower VA Funding Fee and reduce your total loan amount.
What is included in the “Total Monthly Payment”? The total payment includes PITI (Principal, Interest, Taxes, and Insurance) plus any applicable monthly HOA (Homeowners Association) dues. The Taxes and Insurance portions are typically collected by the lender and held in an escrow account.
Are property taxes and insurance always estimated? Yes, until you have an official closing disclosure, the taxes and insurance inputs on any calculator are estimates. Actual escrow payments will be based on the local tax rate and the premium set by your chosen insurance provider.