VA Funding Fee Calculator
Select the VA loan purpose, first or subsequent use, down-payment breakpoint, exemption status, and payment method. See the one-time fee, financed note, closing-cash path, monthly P&I effect, and purchase-tier comparisons on the same result board.
Select the transaction and fee path
For purchase, the down-payment percentage selects the less-than-five, at-least-five, or at-least-ten-percent tier. For another loan type, enter the amount on which the lender applies the fee and use zero cash reduction unless a reduction truly lowers that fee base. The non-purchase fixed rates ignore the purchase tier.
Funding-fee sequence
Fee base = transaction amount − entered down payment or cash reduction
Purchase down percentage = entered down payment ÷ transaction amount
Funding fee = fee base × selected VA rate, or $0 when verified exempt
Financed total note = fee base + funding fee
Cash path = entered cash reduction + cash-paid funding fee
Unlike the USDA fee-wrapping calculation, the VA public example applies its percentage to the loan amount before adding a financed funding fee. The calculator uses the standard fixed-rate amortization formula only to expose the payment effect of financing; VA does not set the lender’s note rate.
Worked first-use purchase with ten percent down
A $450,000 purchase with a $45,000 down payment produces a $405,000 loan before the funding fee. Ten percent down reaches the 1.25 percent first-use purchase tier. Multiplying $405,000 by 1.25 percent gives a $5,062.50 fee. When financed, the total note becomes $410,062.50.
At an entered 6.25 percent for 30 years, P&I on the total note is about $2,524.83. The same loan without the financed fee would be about $2,493.65, so fee financing adds $31.17 per month. If held for the full term without prepayment, that financed $5,062.50 produces approximately $6,158.95 of additional interest beyond the fee principal itself. Taxes, insurance, HOA, points, and other closing costs are outside that payment.
Current rate table built into the selector
Purchase and construction
First use is 2.15 percent below five percent down, 1.50 percent at five percent or more, and 1.25 percent at ten percent or more. Subsequent use is 3.30 percent below five percent, then the same 1.50 and 1.25 percent tiers.
Cash-out and IRRRL
Cash-out refinance is 2.15 percent for first use and 3.30 percent after first use. An IRRRL uses 0.50 percent. Down payment does not change those selected rates.
Other listed types
NADL is 1.25 percent for purchase and 0.50 percent for refinance. Non-affixed manufactured home is 1.00 percent, assumption is 0.50 percent, and Vendee is 2.25 percent.
These are the current VA public chart values, not user-editable market assumptions. Confirm the loan closes under the chart and applicable law in effect on its closing date.
Exemption status overrides rate arithmetic
VA lists exemptions for borrowers receiving VA compensation for a service-connected disability; those eligible for such compensation but receiving retirement or active-duty pay instead; surviving spouses receiving Dependency and Indemnity Compensation; service members with qualifying proposed or memorandum ratings before closing; and active-duty members who provide qualifying Purple Heart evidence on or before closing. Precise status and evidence matter.
Select “exempt” only after verification. A disability rating percentage is not an input because this calculator cannot interpret an award, effective date, COE annotation, or benefit election. If the COE and expected status differ, ask the lender to resolve the issue before the Closing Disclosure.
A later disability award may create a refund question
VA explains that a borrower may be eligible for a funding-fee refund when later-awarded service-connected disability compensation has an effective date retroactive to before the loan closing. A proposed or memorandum rating received only after closing does not create the same refund path described on the VA page. The agency determines entitlement and process.
Keep the Closing Disclosure, note, fee amount, COE, rating decision, and effective-date evidence. Contact the appropriate VA channel or Regional Loan Center rather than subtracting an expected refund from the current loan balance. If a financed fee is refunded, ask the servicer how it will be applied; a principal credit does not necessarily recast the scheduled payment.
A breakpoint changes both rate and fee base
Moving from zero to five or ten percent down can lower the purchase funding-fee rate and the loan amount simultaneously. That is why the three comparison tiles recalculate each tier on its own smaller fee base. The $450,000 example shows $9,675 at zero down, $6,412.50 at five percent, and $5,062.50 at ten percent for first use.
The fee saving is not free: additional down payment consumes cash and puts equity into the property. Compare emergency reserves, closing costs, monthly payment, interest, investment alternatives, appraisal risk, and likely holding period. Do not make a large down payment solely to cross a tier without reviewing the household’s liquidity.
Finance or pay at closing
VA says the fee can generally be included in the loan or paid in full at closing. On a purchase or construction-permanent loan, the VA page distinguishes this from other closing costs: only the funding fee can be financed in the described purchase rule. Seller or builder credits may cover allowable costs, and seller concessions have separate treatment and limits.
Paying cash avoids interest on the fee but increases cash needed. Financing keeps funds available but raises note balance, P&I, payoff, and interest. The right choice depends on reserves and actual loan pricing, not a universal rule.
“First use” is a benefit-history fact
Do not infer first or subsequent use from whether the borrower currently owns a home, has restored entitlement, or is buying for the first time. Prior VA-backed or VA direct loan history controls under program rules. VA notes a special manufactured-home-only history rule on its rate page. The COE and lender’s WebLGY processing provide the relevant classification.
If two eligible Veterans participate, entitlement and funding-fee treatment can require transaction-specific review. This single-rate calculator cannot allocate a joint loan or mixed exemption status. Obtain the lender’s written calculation. Review any prior loan still tied to entitlement, restoration evidence, and the proposed guaranty before treating the dropdown as final.
Compare offers with the same fee status
The funding-fee rate is a program input, but lenders determine interest rate, discount points, origination structure, and many other costs. Request official Loan Estimates on the same day and compare note rate, APR, cash to close, financed loan, P&I, taxes and insurance, lender credits, discount points, buyer-broker charges, and total cost over the expected holding period.
A “no PMI” message does not mean no upfront cost or no risk. Likewise, a conventional or FHA fee structure cannot be compared by one percentage. Use complete disclosures and preserve enough cash for ownership costs.
Do not convert a funding-fee result into a tax deduction
Tax treatment depends on current federal law, timing, whether the fee is paid or financed, property use, itemization, income limits, and IRS guidance. A VA benefit page or calculator output does not prepare the return. Retain the Closing Disclosure and Form 1098 information and verify the filing-year rule.
Frequently asked questions
Is the fee based on purchase price?
No. VA’s example applies the rate to the loan amount after down payment, not the purchase price.
Does every Veteran pay the fee?
No. VA lists qualifying exemptions. Verify status through the COE, lender, and VA before closing.
Can the funding fee be financed?
VA generally permits it to be included in the loan or paid at closing, subject to the transaction and final lender processing.
Does a ten-percent down payment always mean 1.25%?
That breakpoint applies to the current purchase/construction chart. Other loan types have their own fixed rates.
Will a fee refund lower my monthly payment?
Not necessarily. Ask the servicer how any refund is applied and whether the note payment is recast.