VA Loan Funding Fee Calculator
Loan Details
Enter dollar amount or percentage — both fields stay in sync
Exemption Eligibility
Check any that apply — qualifying veterans pay $0 in funding fees
Financing the fee increases your loan balance and total interest paid
Enter Your Loan Details
Select your loan type, service type, purchase price, and exemption status above to instantly see your VA funding fee rate and dollar amount.
Important
This calculator is provided for general information only and is not financial, tax, or legal advice. Results are estimates and do not reflect your full circumstances, current rates, fees, or eligibility rules. Speak to a qualified professional before making a financial decision.
Calculate your VA funding fee rate, dollar amount, and payment impact in seconds
The VA loan funding fee is a one-time charge assessed on nearly all VA home loans. Rather than requiring private mortgage insurance (PMI) like conventional loans, VA loans ask eligible borrowers to pay this upfront (or financed) fee to help sustain the VA loan guarantee program for future generations of service members. Understanding this fee before you close is critical — it can range from 0.5% to 3.3% of your loan amount, translating to thousands of dollars on a typical home purchase. Our VA Loan Funding Fee Calculator does all the work for you. Simply select your loan type (purchase, cash-out refinance, IRRRL, or one of the specialty types), enter your purchase price and down payment, indicate your service type and whether this is your first VA loan or a subsequent use, and check any applicable exemptions. The calculator instantly shows your fee rate, exact dollar amount, total loan amount if you choose to finance the fee, and a full monthly payment comparison between paying upfront and rolling the fee into the loan. A critical detail many borrowers miss: approximately one-third of all VA loan borrowers are completely exempt from the funding fee. If you receive VA disability compensation for a service-connected condition — at any rating level that results in payments — you pay nothing. The same is true for Purple Heart recipients on active duty, surviving spouses receiving Dependency and Indemnity Compensation (DIC), and veterans with a proposed or memorandum disability rating effective before their loan closing date. Our exemption checklist walks you through each criterion so you never overpay. The funding fee rates effective April 7, 2023 (through 2026) depend on three factors for purchase and construction loans: whether it is your first or subsequent VA loan use, the size of your down payment, and your loan type. With no down payment and first-time use, the fee is 2.15% — for a $300,000 loan, that is $6,450. Putting down 5% or more drops the rate to 1.50%, and 10% or more brings it to 1.25%. Subsequent use with under 5% down carries the highest rate at 3.30%. For refinances, IRRRL (Interest Rate Reduction Refinance Loans, also called VA Streamline Refinances) carry a flat 0.50% fee regardless of use history. Cash-out refinances follow the same 2.15%/3.30% structure as purchases. Other loan types — manufactured homes (1.00%), loan assumptions (0.50%), Native American Direct Loans (NADL) for purchase (1.25%), and Vendee loans (2.25%) — each carry their own fixed rates. One often-overlooked option is financing the fee into the loan itself. Rather than paying $6,450 at closing, you can add it to your loan balance and spread the cost over 15 or 30 years. While this reduces upfront cash requirements, it means you pay interest on the fee amount over the life of the loan. Our calculator shows you exactly how much additional interest you will pay so you can make an informed decision. Important rule changes took effect January 1, 2020, under the Blue Water Navy Vietnam Veterans Act of 2019: Reservists and National Guard members now pay the same funding fee rates as Regular Military — the old premium rates for Reserve/Guard members no longer apply. Also note that the VA funding fee lost its tax-deductible status in 2021 and is no longer deductible on federal income tax returns.
Understanding the VA Loan Funding Fee
What Is the VA Funding Fee?
The VA funding fee is a one-time payment required on most VA-backed home loans. It is paid either at closing (upfront) or financed into the loan amount. The fee goes directly to the U.S. Department of Veterans Affairs to sustain the VA home loan guarantee program, which allows VA loans to be offered without requiring a down payment or private mortgage insurance. Unlike PMI — which can cost 0.5% to 2% of the loan amount annually — the VA funding fee is a single charge. Over the life of a loan, even with the funding fee, VA loans typically cost borrowers less than comparable conventional loans with PMI. The exact rate depends on your loan type, whether it is your first or subsequent VA loan, the size of your down payment, and whether any exemptions apply.
How Is the Fee Calculated?
The formula is straightforward: VA Funding Fee ($) = Loan Amount × Funding Fee Rate (%). The loan amount for a purchase loan equals the purchase price minus the down payment. For a refinance, it is the outstanding loan balance or new loan amount. The fee rate is determined by a matrix of factors: loan type (purchase, cash-out, IRRRL, etc.), whether this is the borrower's first or subsequent VA loan use, and the down payment percentage for purchase loans. For purchase loans, the tiers are: under 5% down (2.15% first use, 3.30% subsequent), 5–9.99% down (1.50% both), and 10%+ down (1.25% both). If a co-borrower qualifies for an exemption but the primary borrower does not, the fee is reduced by 50%.
Why the Funding Fee Matters
On a $300,000 home purchase with no down payment, the standard 2.15% first-use fee equals $6,450. If financed into the loan at 6.5% for 30 years, the true cost rises to roughly $9,800 in total payments (principal + interest on the fee). Understanding this helps you decide whether to pay it upfront (if you have the cash reserves) or finance it. Additionally, knowing exemption criteria is financially significant — if you have a service-connected disability with a VA compensation award, checking that box reduces your closing costs by thousands of dollars. The fee also affects your loan-to-value ratio and can push a borderline borrower over conforming limits if financed.
Limitations and Important Notes
This calculator uses the official VA funding fee rates effective April 7, 2023. While these rates are current through 2026, Congress can change them at any time. The monthly payment calculations are estimates based on principal and interest only — they do not include property taxes, homeowners insurance, or HOA fees (PITI). Actual loan amounts are subject to lender approval and VA eligibility determinations. Exemption status must be verified through official VA records; a Certificate of Eligibility (COE) is required for all VA loans. The funding fee tax deduction expired in 2021 and has not been reinstated. This calculator is for educational purposes and does not constitute financial or legal advice.
Reference Tables
Purchase & Construction Loan Rates (2023–2026)
| < 5% | 2.15% | 3.30% |
| 5%–9.99% | 1.50% | 1.50% |
| ≥ 10% | 1.25% | 1.25% |
Other Loan Type Rates
| IRRRL (VA Streamline Refi) | 0.50% |
| Cash-Out Refinance — First Use | 2.15% |
| Cash-Out Refinance — Subsequent Use | 3.30% |
| Manufactured Home (non-permanent) | 1.00% |
| Loan Assumption | 0.50% |
| NADL Purchase | 1.25% |
| NADL Refinance | 0.50% |
| Vendee Loan | 2.25% |
Worked Examples
First-time buyer, no down payment
$7,525 funding fee
Subsequent use, 5% down
$5,700 funding fee
IRRRL streamline refinance
$1,375 funding fee
Exempt — service-connected disability
$0 — full exemption
How to Use the VA Loan Funding Fee Calculator
Select Your Loan Type
Choose Purchase, Cash-Out Refinance, IRRRL (Streamline), or one of the specialty types (Manufactured Home, Assumption, NADL, Vendee). The calculator automatically applies the correct rate table for each loan type.
Enter Loan Amount and Down Payment
For purchase loans, enter the home's purchase price and your down payment — either in dollars or as a percentage. The two fields stay synchronized. For refinances, enter the loan balance or new loan amount.
Check Exemption Criteria
Review the four exemption checkboxes. If you receive VA disability compensation, hold an active-duty Purple Heart, are a DIC-receiving surviving spouse, or have a pre-discharge rating, check the applicable box. The fee drops to $0 automatically.
Compare Upfront vs. Financed
Toggle 'Finance Fee Into Loan' and enter your interest rate and term to see the monthly payment difference and total extra interest cost of rolling the fee into your loan vs. paying it at closing.
Frequently Asked Questions
Who is exempt from the VA funding fee?
You are fully exempt (pay $0) if you meet any one of the following: you receive VA compensation for a service-connected disability at any rating level that results in payment; you are eligible for VA disability compensation but are receiving retirement or active-duty pay instead; you are a surviving spouse receiving Dependency and Indemnity Compensation (DIC); you have a proposed or memorandum disability rating with an effective date before your loan closing; or you are an active-duty service member who provided evidence of receiving the Purple Heart on or before closing. Approximately one-third of all VA borrowers qualify for a complete exemption.
Can I roll the VA funding fee into my loan?
Yes. VA rules allow borrowers to finance the entire funding fee into the loan amount rather than paying it upfront at closing. For example, on a $300,000 loan with a 2.15% fee ($6,450), your financed loan balance becomes $306,450. While this eliminates a large closing cost, you will pay interest on the extra $6,450 for the life of the loan. At 6.5% for 30 years, that adds approximately $8,200 in total payments compared to paying the fee upfront. Our calculator shows you the exact comparison so you can make an informed choice based on your cash reserves and long-term financial goals.
Do Reservists and National Guard members pay higher rates?
No — not anymore. Before January 1, 2020, Reservists and National Guard members paid slightly higher VA funding fee rates than Regular Military. The Blue Water Navy Vietnam Veterans Act of 2019 eliminated this discrepancy effective January 1, 2020. Today, Reservists and National Guard members pay exactly the same rates as Regular Military and active-duty veterans. If you see an older calculator or reference showing different rates for Reservists, those rates are outdated and incorrect for loans closed after January 1, 2020.
What is the VA funding fee for a cash-out refinance?
VA cash-out refinances follow the same rate structure as purchase loans with under 5% down: 2.15% for first-time use and 3.30% for subsequent use. There are no down payment tiers for refinances — the rate depends only on whether this is your first or subsequent VA loan transaction. Note that an IRRRL (VA Streamline Refinance) is different from a cash-out refinance: IRRRLs carry a flat 0.50% fee regardless of use history, making them significantly less expensive than cash-out refinances when VA disability exemptions do not apply.
Can I get a refund of the VA funding fee?
Yes, in specific circumstances. If you paid a VA funding fee at closing and subsequently receive a VA disability rating with an effective date on or before the date of your loan closing, you may be entitled to a full refund of the fee. This situation occurs when a disability claim is pending at the time of closing — perhaps you filed the claim months earlier but the decision came after your loan closed. To request a refund, contact the VA at 1-800-827-1000 or submit a claim through VA.gov. You will typically need to provide your loan closing documents and evidence of your disability rating effective date.
Can the seller pay my VA funding fee?
Yes. VA loan rules allow sellers to pay closing costs as a concession, including the VA funding fee. However, VA guidelines cap non-allowable seller concessions at 4% of the established reasonable value of the property (or sales price, whichever is less). The funding fee is classified as a non-allowable closing cost under VA rules, meaning it falls under this 4% cap along with other items like paying off debt on behalf of the buyer and prepaid taxes/insurance. If the funding fee plus other non-allowable items total more than 4% of the loan amount, the seller cannot cover the excess. Your VA-approved lender can help structure the offer to maximize seller concession benefits within these limits.