VA Loan Savings Calculator: How Much Do You Save?
See exactly how much a VA loan saves you compared to a conventional mortgage — side by side, over 30 years. No login required.
VA loans save most veterans $40,000 to $80,000+ over 30 years compared to a conventional mortgage. The savings come from no PMI, lower interest rates, and $0 down payment. Enter your numbers below to see your exact savings side by side.
VA Loan vs Conventional — 30-Year Cost Comparison
Loan term: 30 years fixed for both VA and conventional.
Total Savings with VA Loan Over 30 Years
-$8,744
Includes lower interest, $0 PMI, and $0 down payment advantage
| Category | VA Loan | Conventional |
|---|---|---|
| Monthly P&I Payment | $2,201.34 | $2,101.63 |
| Monthly PMI | $0 | $138.54for 124 months |
| Total Monthly Payment* | $2,201.34 | $2,240.17 |
| Total Interest (30 yrs) | $434,958 | $424,085 |
| Total PMI Paid | $0 | $17,179 |
| VA Funding Fee | $7,525financed into loan | N/A |
| Down Payment | $0 | $17,500 |
| Cash Needed at Closing** | $0 | $17,500 |
* Conventional total monthly includes PMI until 20% equity is reached. VA loan has no PMI.
** VA cash at closing assumes funding fee is financed into the loan. Excludes other closing costs (title, appraisal, etc.) which apply to both loan types.
This calculator provides estimates for educational purposes only. Actual rates, PMI costs, and loan terms will vary by lender, credit profile, and market conditions. Contact a VA-approved lender for an official loan estimate.
Why Does a VA Loan Save Veterans So Much Money?
The VA loan benefit saves money in three ways that compound over the life of the loan. First, no private mortgage insurance (PMI) — conventional borrowers with less than 20% down pay PMI every month, often $100 to $300+, for years until they build enough equity. Second, VA interest rates are typically 0.25% to 0.50% lower than conventional rates because the VA guaranty reduces lender risk. Third, $0 down payment means you keep your cash for moving costs, repairs, and an emergency fund instead of locking it into the home on day one.
What About the VA Funding Fee — Does It Wipe Out the Savings?
No. The VA funding fee is a one-time charge (currently 2.15% for first-time use with $0 down) that funds the VA loan program. On a $350,000 loan, that is about $7,525. Conventional PMI at 0.5% annually costs roughly $1,458 per year — and it takes about 10 years of payments to reach 20% equity and drop PMI. That totals over $15,000 in PMI payments alone. The funding fee pays for itself in about 5 years. Veterans with a service-connected disability are fully exempt from the funding fee, making the savings even larger. See our VA funding fee calculator for your exact fee amount.
How Do Monthly Payments Compare Between VA and Conventional?
Even though a VA loan finances the full home price (no down payment), the monthly P&I payment is often lowerthan a conventional loan because of the lower interest rate. Add in the conventional borrower's PMI payment, and the gap widens further. The calculator above shows you both monthly payments side by side so you can see the difference for your specific price and rates.
Want to see the full monthly breakdown including taxes and insurance? Use our VA mortgage calculator for a complete payment estimate, or check how much home you can qualify for with our VA affordability calculator.
When Might a Conventional Loan Be Cheaper Than VA?
If you have 20% or more to put down, a conventional loan eliminates PMI entirely and avoids the VA funding fee. In that scenario, the total costs become much closer and a conventional loan may occasionally win depending on rates. However, most homebuyers — especially first-time buyers and military families — do not have 20% saved. For buyers putting less than 20% down, the VA loan almost always saves money. Explore the full comparison in our VA loan vs conventional guide.
I'm Barrett Henry — a Military Relocation Professional (MRP)and Broker Associate with REMAX Collective. I built this calculator because too many veterans don't realize how much money they leave on the table by going conventional. I help Tampa Bay veterans understand their VA benefit and connect with VA-approved lenders who can give you exact, personalized numbers. Learn more about VA home buying at the U.S. Department of Veterans Affairs.
Barrett Henry, MRP
Broker Associate, REMAX Collective
23+ years of real estate experience helping Tampa Bay veterans navigate VA home loans.
Learn more about Barrett →Want Your Exact VA Loan Savings?
Barrett Henry (MRP) can connect you with VA-approved lenders to show you exactly what you'll save. Free, no-obligation guidance.
More VA Loan Calculators and Resources
Frequently Asked Questions
How much do veterans actually save with a VA loan vs conventional?
On a $350,000 home with 5% conventional down payment, veterans typically save $40,000 to $80,000+ over 30 years with a VA loan. The savings come from three sources: no PMI (which alone can cost $15,000-$30,000 over the years you pay it), lower interest rates (VA rates run about 0.25% lower on average), and $0 down payment requirement. The exact savings depend on your specific rate, home price, and how long you keep the loan.
Does the VA funding fee cancel out the savings of a VA loan?
No. The VA funding fee (2.15% for first-time use with $0 down) is a one-time cost, while PMI on a conventional loan is a recurring monthly charge that lasts for years. On a $350,000 loan, the funding fee is about $7,525 — but conventional PMI at 0.5% annually costs roughly $1,458 per year and takes about 10+ years to drop off, totaling $15,000+ in PMI payments. The VA funding fee pays for itself within 5-6 years. Veterans with a service-connected disability pay no funding fee at all.
Is a VA loan always better than a conventional loan?
In most cases, yes — especially when you have less than 20% to put down. VA loans offer lower rates, no PMI, and no down payment requirement. However, if you have 20% or more for a down payment, the conventional loan eliminates PMI entirely and avoids the VA funding fee. In that scenario, the two options are closer in total cost, and a conventional loan may occasionally edge ahead depending on rates. This calculator lets you adjust the numbers to compare your specific situation.
Can I use this calculator if I already have a VA loan?
Yes. If you are considering refinancing from a VA loan to a conventional loan (or vice versa), adjust the inputs to match your current balance and rates. Keep in mind that subsequent VA loan use carries a higher funding fee (3.3% with $0 down vs 2.15% for first use). If you are refinancing an existing VA loan into a new VA loan, the VA IRRRL (Interest Rate Reduction Refinance Loan) is usually the better path — it has a reduced 0.5% funding fee and minimal paperwork.