VA Loan Calculator Formula

Understand the math behind the va loan calculator. Each variable explained with a worked example.

Use the VA Loan Calculator

Formulas Used

Monthly Payment (P&I)

payment = monthly_payment

VA Funding Fee

funding_fee_amt = funding_fee

Total Loan Amount

total_loan_amt = total_loan

Total Amount Paid

total_paid = monthly_payment * n

Total Interest

total_interest = monthly_payment * n - total_loan

Variables

VariableDescriptionDefault
home_priceHome Purchase Price(USD)350000
down_paymentDown Payment(USD)0
interest_rateInterest Rate(%)6.25
loan_term_yearsLoan Term(years)30
funding_fee_pctVA Funding Fee(%)2.15
finance_funding_feeFinance Funding Fee? (1=Yes, 0=No)1
base_loanDerived value= home_price - down_paymentcalculated
funding_feeDerived value= base_loan * funding_fee_pct / 100calculated
total_loanDerived value= finance_funding_fee >= 1 ? base_loan + funding_fee : base_loancalculated
rDerived value= interest_rate / 100 / 12calculated
nDerived value= loan_term_years * 12calculated
monthly_paymentDerived value= r > 0 ? total_loan * r * pow(1 + r, n) / (pow(1 + r, n) - 1) : total_loan / ncalculated

How It Works

VA Loan Benefits

VA loans are available to eligible veterans, active-duty service members, and surviving spouses. They offer significant advantages over conventional financing.

Key Features

  • No down payment required (100% financing)
  • No PMI or MIP ever
  • Competitive interest rates, often lower than conventional
  • No prepayment penalty

    • VA Funding Fee

    Instead of mortgage insurance, VA loans have a one-time funding fee:

  • First-time use, no down payment: 2.15%
  • Subsequent use, no down payment: 3.30%
  • With 5% down: 1.50%
  • With 10%+ down: 1.25%
  • Exempt: Veterans with service-connected disability

    • The funding fee can be financed into the loan or paid at closing.

    Worked Example

    A $350,000 home with $0 down, 6.25% rate, 30-year term, 2.15% funding fee financed.

    home_price = 350000down_payment = 0interest_rate = 6.25loan_term_years = 30funding_fee_pct = 2.15finance_funding_fee = 1
    1. 01Base loan: $350,000 - $0 = $350,000
    2. 02VA funding fee: $350,000 x 2.15% = $7,525
    3. 03Total loan (fee financed): $350,000 + $7,525 = $357,525
    4. 04Monthly payment: $357,525 over 360 months at 6.25% = $2,201.37
    5. 05Total paid: $2,201.37 x 360 = $792,493
    6. 06Total interest: $792,493 - $357,525 = $434,968

    Ready to run the numbers?

    Open VA Loan Calculator