Use this VA Mortgage Calculator to quickly estimate your monthly principal and interest payment, including the mandatory VA Funding Fee factored into the total loan amount.
VA Mortgage Calculator
Estimated Monthly P&I Payment
$0.00
Detailed Calculation Steps
VA Mortgage Calculator Formula
The calculation is based on the standard fixed-rate amortization formula, adjusted to include the VA Funding Fee in the total principal.
P_total = Principal * (1 + (Funding Fee / 100))
M = P_total * [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]
Where:
- M = Monthly Payment (Principal & Interest)
- P_total = Total Loan Principal including Funding Fee
- r = Monthly Interest Rate (Annual Rate / 12 / 100)
- n = Total Number of Payments (Loan Term in Years * 12)
Formula Source: VA.gov Official Site, CFPB Resources
Variables Explained
The variables used in this calculator are:
- Base Loan Amount: The primary amount borrowed before any fees.
- Annual Interest Rate (%): The yearly cost of the borrowed funds.
- Loan Term (Years): The duration over which the loan is paid back (typically 15 or 30 years).
- VA Funding Fee Percentage (%): A mandatory fee charged by the VA to reduce the loan’s cost to taxpayers. This amount is typically financed into the loan principal.
Related Calculators
Explore other financing tools:
- Debt-to-Income Calculator
- Refinance Break-Even Calculator
- Amortization Schedule Generator
- Property Tax Estimator
What is a VA Mortgage?
A VA (Veterans Affairs) loan is a mortgage option available to qualifying veterans, active service members, and surviving spouses. These loans are guaranteed by the U.S. Department of Veterans Affairs, which is why they are often offered with highly favorable terms, such as no requirement for private mortgage insurance (PMI) and often requiring no down payment.
The primary unique cost of a VA loan is the **VA Funding Fee**. This fee is a one-time charge, which varies based on the type of veteran and whether they have used the VA loan benefit before. It is typically financed (rolled) into the loan amount, thereby increasing the total principal on which the monthly payment is calculated.
How to Calculate a VA Mortgage Payment (Example)
- Determine Total Principal: Start with a $300,000 base loan and assume a 2.15% funding fee. Total Principal = $300,000 * (1 + 0.0215) = $306,450.
- Convert Rate & Term: Convert a 6% annual rate to a monthly rate: 0.06 / 12 = 0.005. Convert a 30-year term to payments: 30 * 12 = 360 payments.
- Apply Amortization Formula: Plug these values into the P&I formula (M) to determine the base monthly payment.
- Review Total Cost: Multiply the monthly payment by 360 to see the total repayment amount and subtract the total principal to find the total interest paid over the life of the loan.
Frequently Asked Questions (FAQ)
What is the VA Funding Fee? The VA Funding Fee is a one-time fee paid by the veteran to the VA. It helps offset the cost of the loan program for U.S. taxpayers. It is mandatory unless the veteran is exempt (e.g., receiving VA compensation for a service-connected disability).
Can I finance the Funding Fee? Yes, in most cases, the Funding Fee is financed (rolled into the loan), which increases the total loan amount and therefore the monthly payment. This calculator includes this fee in the principal calculation.
Do VA loans require PMI? No, one of the biggest benefits of a VA loan is that it does not require private mortgage insurance (PMI), even with zero down payment, unlike conventional loans.
What is the maximum VA loan amount? The VA does not set a maximum. However, lenders may impose limits, and the VA typically guarantees 25% of the conforming loan limit in the area, allowing the veteran to borrow up to that amount without a down payment.