Use this comprehensive VA Loan Mortgage Calculator to estimate your total monthly payment, including Principal & Interest (P&I), property taxes, homeowner’s insurance, and the mandatory VA Funding Fee. This tool provides a detailed breakdown to help you budget for your home purchase.
VA Loan Mortgage Payment Calculator
Estimated Total Monthly Payment
$0.00Calculation Breakdown
VA Loan Mortgage Payment Formula
The core P&I (Principal and Interest) payment is calculated using the standard amortization formula, applied to the VA Total Loan Amount (Principal + Funding Fee):
$$M = P \left[ \frac{r (1+r)^n}{(1+r)^n – 1} \right]$$Where:
- $M$: Monthly Principal & Interest Payment
- $P$: Total Loan Principal (including VA Funding Fee)
- $r$: Monthly Interest Rate (Annual Rate / 12 / 100)
- $n$: Total Number of Payments (Loan Term in Years × 12)
The total monthly payment is then: Total = $M + \frac{\text{Annual Tax}}{12} + \frac{\text{Annual Insurance}}{12}$
Formula Source: Investopedia Amortization Formula, VA Funding Fee Guidelines
Variables Explained
The calculator uses the following variables, crucial for accurate VA loan estimates:
- Property Purchase Price: The negotiated price of the home.
- Down Payment: The amount paid upfront. While VA loans often require 0% down, this field allows for scenarios where a down payment is made.
- Annual Interest Rate (%): The rate on the mortgage loan.
- Loan Term (Years): The length of the mortgage (e.g., 30 years).
- VA Funding Fee (%): A mandatory fee paid to the VA that helps offset the cost to taxpayers. The percentage varies based on military service and previous VA loan use.
- Annual Property Tax ($): The estimated yearly cost of property taxes.
- Annual Homeowner’s Insurance ($): The yearly cost of insuring the home.
Related Calculators
- Conventional Loan Payment Calculator
- Mortgage Refinance Savings Calculator
- Maximum Affordable Home Price Calculator
- Amortization Schedule Generator
What is a VA Loan Mortgage Payment Calculator?
A VA Loan Mortgage Payment Calculator is a specialized financial tool designed specifically for military service members, veterans, and eligible surviving spouses. It goes beyond standard mortgage calculators by incorporating the unique costs associated with a VA loan, most notably the VA Funding Fee, which is typically rolled into the loan principal.
The primary purpose of this calculator is to determine the true, all-in monthly expense of homeownership. This includes the principal and interest (P&I) payment derived from the final loan amount (Price – Down Payment + Funding Fee), plus the monthly escrows for property taxes and homeowner’s insurance. This holistic view is essential for budgeting and understanding affordability.
Because VA loans do not require Private Mortgage Insurance (PMI), this calculator helps users appreciate the significant cost savings compared to FHA or conventional loans, especially those with low or zero down payments. By providing the funding fee rate, users can quickly see its impact on the total monthly obligation.
How to Calculate VA Loan Payment (Example)
Here is a step-by-step example of how the calculation works:
- Determine the Base Loan Amount: Subtract the Down Payment from the Purchase Price. (e.g., $300,000 Price – $0 Down = $300,000).
- Calculate the VA Funding Fee: Multiply the Base Loan Amount by the Funding Fee Percentage (e.g., $300,000 × 2.15% = $6,450).
- Calculate the Total Principal (P): Add the Funding Fee to the Base Loan Amount ($300,000 + $6,450 = $306,450).
- Find Monthly P&I (M): Plug $P$, the monthly rate ($r$), and total months ($n$) into the amortization formula.
- Calculate Monthly Escrows: Divide the Annual Property Tax and Annual Insurance by 12.
- Find Total Monthly Payment: Sum the Monthly P&I ($M$) and the Monthly Escrows.
Frequently Asked Questions (FAQ)
Yes. In most cases, the VA Funding Fee is financed (added) to the total loan principal, which means it is factored into the monthly principal and interest (P&I) payment calculated over the life of the loan.
While VA loans are famous for offering 100% financing (0% down payment) for eligible buyers, a down payment may be required if the purchase price exceeds the county loan limit or if the buyer chooses to put money down.
No. One of the greatest benefits of a VA loan is that it does not require Private Mortgage Insurance (PMI), even with a zero down payment. This often results in significant monthly savings compared to conventional or FHA loans.
The VA Funding Fee is waived for veterans who receive compensation for a service-connected disability. If waived, you should enter 0% in the “VA Funding Fee (%)” field of the calculator for the most accurate result.