What this calculator does
It works out the VA funding fee: the one-time charge on most VA home loans, set by the type of loan, whether you have used the benefit before and, for a purchase, the size of your down payment.
The fee is a percentage of the loan amount. The rates are set in federal law (38 U.S.C. § 3729) and published by the U.S. Department of Veterans Affairs (VA), not set by your lender. You can pay the fee at closing or add it to the loan, and some borrowers are exempt.
Pick a loan type, then enter the price and down payment for a purchase, or the loan amount for a refinance or assumption. The results show the fee, its rate and base, and the total loan or cash due at closing.
How the math works
The fee is a single multiplication:
- F
- funding fee in dollars
- L
- the amount the fee is figured on: price − down payment for a purchase, the new loan amount for a refinance, or the unpaid balance for an assumption
- f
- the rate from VA's table for your loan type, use and, for a purchase, down payment band
If you finance the fee, the total loan is L + F. The fee is figured on the loan before it is added, so it is not charged on itself.
Purchase and construction loans
Here the rate depends on your down payment band: the down payment as a share of the purchase price. The band is measured against the price, but the rate is applied to the loan amount. VA's own example: $10,000 down on a $200,000 home is 5% of the price, so with first use the fee is 1.5% of the $190,000 loan, or $2,850.
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to less than 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Other loan types
Every other type has a flat rate, whatever the down payment; only cash-out refinances separate first use from later use.
| Loan type | Fee |
|---|---|
| Cash-out refinance, first use | 2.15% |
| Cash-out refinance, after first use | 3.3% |
| Interest rate reduction refinance (IRRRL) | 0.5% |
| Loan assumption | 0.5% |
| Manufactured home (not permanently affixed) | 1% |
| Native American Direct Loan – purchase | 1.25% |
| Native American Direct Loan – refinance | 0.5% |
| Vendee loan (not in the calculator) | 2.25% |
First use and subsequent use
First use is the first time you use your VA home loan benefit. If you have had a VA-backed home loan before, the after-first-use column applies. On a purchase with less than 5% down, that is the difference between 2.15% and 3.3%.
Who does not pay the fee
VA lists these exemptions. You do not pay a funding fee if you:
- receive VA compensation for a service-connected disability;
- are eligible for that compensation but receive retirement or active-duty pay instead;
- are the surviving spouse of a Veteran and receive Dependency and Indemnity Compensation (DIC);
- are a service member who, before closing, received a proposed or memorandum rating saying you are eligible for compensation based on a pre-discharge claim; or
- are on active duty and provide evidence, on or before your closing date, that you received the Purple Heart.
This calculator cannot check whether an exemption applies to you. Confirm your status with VA or your lender.
Worked example
Say you have used your VA home loan benefit before and are buying a $320,000 home with $8,000 down, financing the fee.
Worked example
- Down payment band: $8,000 ÷ $320,000 = 2.5% of the price, which is less than 5%.
- Rate in that band after first use: 3.3%.
- Loan amount: $320,000 − $8,000 = $312,000. Fee: $312,000 × 3.3% = $10,296.00.
- Financed, the total loan is $312,000 + $10,296.00 = $322,296.00, with nothing due for the fee at closing.
VA funding fee: $10,296.00, added to the loan for a total of $322,296.00.
The same purchase as a first use would cost 2.15%, or $6,708.00. Raising the down payment to $16,000 (5%) moves into the next band: 1.5% of $304,000, or $4,560.00.
Common mistakes
- Applying the rate to the price. VA charges the fee on the loan amount. The price only sets the down payment band.
- Measuring the down payment against the loan. The band is the down payment divided by the purchase price. In VA's example, $10,000 is 5% of the price but 5.26% of the loan.
- Landing just under a band edge. On the example home, $15,000 down (4.69%) still pays 3.3%, or $10,065.00; $16,000 down pays $4,560.00.
- Choosing first use after using the benefit before. A past VA-backed loan generally puts you in the after-first-use column, which matters most with a small down payment or a cash-out refinance.
- Forgetting that a financed fee carries interest. Adding it to the loan avoids paying it at closing, but it joins the balance and accrues interest for as long as the loan runs.
Limits of this estimate
- It uses VA's published rates as last verified on October 5, 2026. If VA changes them, VA's figures govern.
- It does not decide whether you qualify for a VA loan, which use applies to you or whether you are exempt. VA and your lender confirm those.
- Vendee loans are listed in the table but not in the calculator.
- For a refinance or assumption, the result is only as good as the amount you enter: the new loan before the fee, or the unpaid balance being assumed.
- It covers the funding fee only, not other closing costs or the monthly payment.
Frequently asked questions
Is the VA funding fee based on the price or the loan amount?
The loan amount. The price only decides the down payment band on a purchase. In VA's own example, $10,000 down on a $200,000 home, first use, the fee is 1.5% of the $190,000 loan: $2,850.
What counts as subsequent use?
First use is the first time you use your VA home loan benefit. If you have had a VA-backed home loan before, the subsequent-use (after first use) rates apply. They differ for purchases with less than 5% down (2.15% versus 3.3%) and for cash-out refinances (2.15% versus 3.3%).
Can I add the funding fee to my loan?
VA lets you either include the fee in the loan and pay it off over time, or pay it in full at closing. The calculator's toggle shows both.
Who is exempt from the VA funding fee?
VA's list covers Veterans receiving VA compensation for a service-connected disability (or eligible for it but receiving retirement or active-duty pay instead), surviving spouses receiving Dependency and Indemnity Compensation, service members with a pre-discharge proposed or memorandum rating, and active-duty members with a Purple Heart. The full wording is in the exemption list above. Confirm your status with VA or your lender.
Does a bigger down payment always lower the fee?
Only on purchase and construction loans, and the rate only changes when the down payment crosses a band edge (5% and 10% of the price). Within a band, more down lowers the loan amount, so the fee in dollars falls a little, but the rate stays the same. Other loan types have flat rates.
What is the funding fee on an IRRRL?
0.5% of the new loan amount, for first or subsequent use alike. On a $250,000 IRRRL that is $1,250.00.
Sources
The fee rates and exemptions on this page come from VA's published funding fee information and the loan fee table in federal law. Rates last verified: October 5, 2026. If this page and those sources ever disagree, the official sources govern.
Next steps: the mortgage payment calculator turns the loan into a monthly payment with tax and insurance, and the cash to close calculator totals what you bring on closing day if you pay the fee in cash. To see how an FHA loan charges for mortgage insurance on the same home, try the FHA MIP calculator.