VA Loan Calculator: Check Loan Payments

A VA Loan Calculator is an online tool that allows eligible veterans, active service members and surviving spouses to estimate how much they would pay each month for a mortgage loan. A VA loan is backed by the U.S. Department of Veterans Affairs (VA) and provides numerous benefits such as no down payment, competitive rates and no private mortgage insurance (PMI).

Whether you are buying your first home, looking to move house to another state or refinancing an existing mortgage, using a VA Loan Calculator can help you understand how much you could pay per month. Inputting the loan amount, interest rate, term, down payment and other costs can help you understand how much you could expect to pay for your mortgage.

The VA Loan Calculator can also be used to understand your finances when taking out a VA loan as it can calculate your VA Funding Fee (which can be financed into the loan amount). This differs from standard mortgage calculators.

This calculator can be used to understand how much you could pay for different home prices, terms, rates and down payments.

How to Use the VA Loan Calculator

Using the VA Loan Calculator is simple. To get an idea of how much you may pay per month for your mortgage:

Enter Home Price – Enter how much the home you want to buy is. For example, if it is $350,000 in Texas.

Enter Down Payment – Most VA loans will not require any down payment if you have enough entitlement however, if you want to add some down payment you can.

Enter Interest Rate – Add your estimated interest rate the lender is offering. For example, 6.25%.

Enter Loan Term – Decide how long you want to repay the loan over. You can choose between 15 or 30 years.

Enter VA Funding Fee – If there is a VA Funding Fee, enter this. You can also add if you wish to finance this.

Add Property Taxes and Homeowners Insurance – Enter your estimated yearly property taxes and insurance to understand how much you’d pay per month.

Calculate – Press calculate to see how much you’d pay per month. You’ll also get an idea of how much you pay for principal and interest, how much interest you pay and other costs.

You can alter your inputs to see how much you’d pay for different mortgages.

VA Loan Calculator Formula

The VA Loan Calculator mainly uses the standard mortgage formula to understand how much you would pay per month for principal and interest.
The formula used is:
M=P x [r(1 + r) n / ((1 + r) n – 1)]

Where:

M = Monthly payment for principal and interest.
P = Total principal amount plus any funded funding fee.
r = Monthly interest rate – this is calculated by dividing your annual interest rate by 12.

n = Total number of payments – this is calculated by multiplying your loan term (in years) by 12.

To understand how much you’d pay in total for your home, the calculator can also add in property taxes, homeowners insurance and other relevant costs.

Total Monthly Payment:

T=M + PT/12 + HI/12 + O

Where:

T = Total estimated monthly payment.
M = Monthly payment for principal and interest.
PT = Property tax per year.
HI = Homeowners insurance per year.
O = Other monthly costs. For example, HOA fees.

If you are financing the VA Funding Fee then this will be added to the principal.

Example

Let’s look at an example of a veteran who is buying a home in the U.S. using a VA backed home loan.

Loan Details Amount
Home Price $350,000
Down Payment $0
Loan Amount $350,000
Interest Rate 6.25%
Loan Term 30 Years
VA Funding Fee 2.15%
Property Taxes $3,500
Homeowners Insurance $1,500
HOA Fees $0

We’ll assume that this borrower is using the VA purchase loan funding fee rate for someone using their VA loan for the first time with less than 5% down payment and are not exempt.

VA Funding Fee:

350,000 x 2.15% = 7,525
VA Funding Fee = $7,525.
Total Loan Amount:
350,000+7,525=357,525
Financed Loan Amount = $357,525.

Monthly Principal and Interest:

With an interest rate of 6.25% and loan term of 30 years you would pay around $2,201 per month.

Property Taxes and Insurance:

Property Taxes Per Month: $3,500 ÷ 12 = $291.67
Homeowners Insurance Per Month: $1,500 ÷ 12 = $125

Total Monthly Payment:

2,201 + 291.67 + 125 = $2,617.67

Estimated Monthly Payment:
$2,617.67

This total includes principal, interest, property taxes and homeowners insurance. It does not include utility bills, maintenance or other costs.

Understanding Your VA Loan Calculator

Once you’ve entered all the details for your loan you’ll see a few different results.

Monthly Principal and Interest – This is the amount you pay towards your original loan amount and interest charged by the lender each month.

Total Loan Amount – This shows how much you’ve borrowed including any

VA Funding Fee.

Property Taxes Per Month – This gives an idea of how much you’ll pay in

property taxes each month based on where your property is located.
Homeowners Insurance – This shows how much you’ll pay in insurance each month.

Total Monthly Payment – This shows how much you’ll pay per month including principal, interest, property taxes, insurance and other costs.

Total Interest – This shows how much interest you may pay across the full loan period.

Total Loan Cost – This shows how much you’ll pay in total for the loan (principal and interest) over the repayment period.

These results can help you understand if the home you’re looking at would fit within your monthly budget.

Variables That Affect Your VA Loan Calculation

There are a few variables that can affect your estimated VA mortgage.

Home Price – If the home price is higher it will generally increase how much you’d need to borrow and therefore pay per month.

Down Payment – While most VA loans allow eligible borrowers to purchase without any down payment, putting some money down can reduce your loan amount.

Interest Rate – Your mortgage interest rate will directly affect how much you pay per month.

Loan Term – A 30 year mortgage will generally have lower monthly repayments but will cost more in total interest. Whereas a 15 year mortgage will have higher monthly payments but cost less in total interest.

VA Funding Fee – Most borrowers will have to pay a one-off VA Funding Fee. This depends on factors such as down payment and how many times you’ve used a VA loan before. Some borrowers such as qualifying veterans with VA disability compensation can be exempt.

Property Taxes – Depending on where you live property taxes can vary greatly.

Homeowners Insurance – This can vary depending on where you live, how much your home is worth, what cover you want and risk factors.
HOA Fees – If you are living in certain communities you may have to pay

HOA fees.

Understanding the variables can help you understand how much different financing options will cost and help you make informed decisions.

Benefits of Using a VA Loan Calculator

Using a VA Loan Calculator can provide several benefits for military personnel and their families.

Estimate How Much You Can Afford – Try different home prices to understand how much home you may be able to afford.

Plan Your Monthly Budget – Calculate how much you’d pay for your mortgage.

Compare Interest Rates – Try different rates to understand how small differences can affect how much you pay per month.

Understand VA Funding Fees – This will help you understand how much you’d pay for your loan including the VA Funding Fee.

Compare Loan Terms – You can see how much you’ll pay for 15 and 30 year mortgages to see which option would work best for your situation.

Get an Idea – Get an idea of how much you’d pay for your home before contacting a VA approved lender or applying for a mortgage.

Refinance – Using a VA Loan Calculator can help you understand how much you may pay per month for a potential VA Interest Rate Reduction

Refinance Loan (IRRRL).

Overall it can help you understand your mortgage and get a clearer idea of how much you may have to pay.

Accuracy and Assumptions

The VA Loan Calculator will give you an estimated figure based on the information you input. Actual mortgage repayments and loan costs may vary depending on the lender, eligibility, location and other factors.
It will generally be assuming that you have a fixed interest rate throughout the loan term. If you have an adjustable rate mortgage then your repayments may vary.

The VA Funding Fee will depend on your eligibility, down payment, loan and how many times you’ve had a VA loan before. Some borrowers such as qualifying veterans with VA disability compensation may be exempt.
The calculator will not tell you if you are eligible for a VA loan, how much entitlement you have, your credit worthiness or final interest rate. It should not be used as a replacement for a Loan Estimate from your mortgage lender.

Other costs may not be included such as closing costs, utility bills, maintenance, mortgage discount points and some escrow changes.
To get the most accurate estimate, use current interest rates, property tax, insurance and VA Funding Fee.

FAQ

Can I use a VA Loan Calculator if I’m not putting any down?

Yes! Most VA loans will allow you to purchase a home with no down payment if you have enough entitlement and meet the lender criteria. Simply enter $0 into the down payment box to see how much you’d pay for your mortgage.

Do VA loans require PMI?

No! VA backed home loans will not require you to pay any PMI even if you’re purchasing with no down payment. You may still have to pay the VA funding fee unless you are exempt.

What is a VA Funding Fee and can I finance this?

A VA Funding Fee is a one-off fee that helps fund the VA home loan scheme. Most eligible borrowers can finance this into their mortgage. Some veterans and service members may be exempt.

What Credit Score Do I Need?

There is no minimum credit score set by the VA. However, lenders may have different criteria. They will consider your income, debt to income ratio, payment history and overall financial stability.

Can I use a VA Loan Calculator to calculate how much I may pay for a Refinance?

Yes! You can use the VA Loan Calculator to get an idea of how much you may pay per month for a potential VA Refinance. To get the most accurate result enter in your new loan amount, interest rate, term and costs. This will depend on the lender criteria and loan specifics.