VA vs Conventional Loan Calculator
Compare a VA loan and a conventional loan on the same home: monthly payment, the VA funding fee vs private mortgage insurance (PMI), cash to close and total cost. Free, private, no signup.
| VA loan | Conventional |
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* Principal, interest and mortgage insurance. Property taxes and homeowners insurance are the same for both loans, so they are left out. ** Down payment plus the funding fee if you do not finance it; other closing costs are not included. "Cost of borrowing" adds up interest, PMI and the funding fee over the years you keep the loan. The down payment is not counted because it stays as equity in your home, but remember it is cash you no longer have.
Want a full VA payment with taxes and insurance? Use the VA loan payment calculator →
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VA funding fee rates effective April 7, 2023, still in effect and last checked October 2026. PMI rates vary by lender and credit score: use your own quote. Estimates only; your lender's figures are the ones that count.
How this VA vs conventional calculator works
It prices the same home twice. The VA side adds the VA funding fee for your down payment and usage and charges no monthly mortgage insurance. The conventional side charges private mortgage insurance (PMI) on the original loan amount whenever the down payment is under 20%, and stops it when the scheduled balance reaches 78% of the home's value, as the Homeowners Protection Act requires.
Then it adds up what each loan costs you over the years you expect to keep it: interest, PMI and the funding fee. That is fairer than comparing the monthly payment alone, because the two loans start with different down payments and fees.
VA funding fee vs PMI at a glance
| VA loan | Conventional loan | |
|---|---|---|
| Minimum down payment | 0% | 3% on standard conforming programs |
| Upfront fee | Funding fee 1.25%–3.30% (0% if exempt) | None |
| Monthly mortgage insurance | None | PMI below 20% down, usually 0.3%–1.5% of the loan a year |
| How long it lasts | Not applicable | Until the balance reaches 78% of the home's value (cancel on request at 80%) |
| Loan limit (2026) | None with full entitlement | $832,750 in most counties, up to $1,249,125 in high-cost areas |
| Property type | Primary residence only | Primary, second home or investment property |
Sources: VA.gov funding fee, CFPB: what is private mortgage insurance and FHFA 2026 conforming loan limits.
An example
Take a $350,000 home on a 30-year loan. A first-time VA buyer puts nothing down at 6.25% and finances the 2.15% funding fee of $7,525, so the loan is $357,525 and the payment is about $2,201 a month.
The same buyer with a conventional loan puts 5% down ($17,500) at 6.5%. The loan is $332,500 and principal and interest come to about $2,102, plus about $139 of PMI at 0.5% a year, for about $2,240 a month. The PMI lasts about 11 years, until the balance reaches 78% of the price.
So the VA loan is about $39 a month cheaper and needs $17,500 less cash at closing. Over seven years the interest and fees come out almost even (about $156,800 for VA and $156,300 for conventional), because the conventional loan starts $25,000 smaller. With 20% down the conventional loan has no PMI and no funding fee; its payment drops to about $1,770, but you need $70,000 at closing.
When a conventional loan can make more sense
- You can put 20% or more down. No PMI and no funding fee, so the conventional loan is often cheaper overall, especially for subsequent VA use where the fee is 3.30% with less than 5% down.
- It is a second home or an investment property. VA loans are only for a home you will live in.
- Your VA entitlement is tied up in another home and the lender would ask for a down payment anyway.
For the full comparison, including credit and rates, read our guide VA loan vs. conventional loan.
Frequently asked questions
Is a VA loan better than a conventional loan?
For most eligible buyers with less than 20% down, yes: no down payment, no private mortgage insurance and usually a lower rate. The VA funding fee is a one-time cost that many veterans with a disability rating do not pay. A conventional loan can come out ahead with 20% or more down (no PMI and no funding fee), for a second home or investment property, or when your VA entitlement is tied up in another home.
How much is PMI on a conventional loan?
Private mortgage insurance usually costs about 0.3% to 1.5% of the loan amount a year, depending mainly on your credit score and down payment. Ask your lender for the exact figure and enter it in the calculator; the default of 0.5% is a middle-of-the-road example for a strong credit score with 5% down.
When does PMI go away on a conventional loan?
By federal law (the Homeowners Protection Act) PMI ends automatically when your scheduled balance reaches 78% of the home's original value, and you can ask to cancel it at 80% if your payment history is good. With 5% down on a 30-year loan at 6.5%, that takes about 11 years. A VA loan never has monthly mortgage insurance.
Is the VA funding fee worse than PMI?
Not usually. The funding fee is paid once (2.15% of the loan for a first-time buyer with less than 5% down) and is often rolled into the loan, while PMI is paid every month until the balance reaches 78% of the home's value. Over the first several years the two costs are often similar; the bigger differences are the down payment and the interest rate.
Does this work for buying a house in California or another high-cost area?
Yes, the math is the same anywhere. What changes in high-cost areas is the loan limit: a conventional conforming loan is capped at $832,750 in most counties and up to $1,249,125 in the most expensive ones in 2026, while a VA loan has no limit if you have full entitlement. Above the conforming limit, a conventional loan becomes a jumbo loan with stricter terms.
More tools
VA Loan Payment Calculator — monthly payment and amortization schedule.
VA Funding Fee Calculator — see your fee and how a down payment changes it.
VA Loan Affordability Calculator — how much house can you afford?
VA vs FHA Loan Calculator — compare payments, funding fee vs MIP and total cost.
VA Loan vs. Conventional Loan — the full guide: rates, credit and when each one wins.
VA Entitlement Calculator — remaining entitlement and the largest $0 down loan.
VA Closing Cost Calculator — estimate fees, prepaids and your cash to close.
VA Residual Income Calculator — check the VA residual income test for your family.
VA Loan DTI Calculator — your debt-to-income ratio against the 41% benchmark.
VA Loan Guides — eligibility, closing costs, limits, IRRRL, FHA and more.