How to Calculate a VA Loan Payment

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Learning how to calculate a VA loan payment can be a confusing process. There are a wide variety of terms used in the world of mortgage, many of which you’ll rarely hear again outside of applying for a home loan.

Escrow, funding, residual income — all are terms used when getting approved for a VA mortgage. There are other terms that apply as well that reference how to calculate a loan payment such as amortization period, note rate or principal and interest.

Through all of this, many veterans simply want to know how to calculate a loan payment on their own without having to contact a loan officer directly. They just want to know how it’s done.

If you need assistance calculating loan payments, can help. Call 800-211-4940 or click here to contact a loan specialist who can help you calculate loan payments that work for your budget.

Read more to learn how to calculate a loan and how our payment calculator makes calculating loan payments a snap.

Calculating Loan Payments

Calculating a loan payment can be easily done as long as you have the following three key elements:

  • Term
  • Interest Rate
  • Loan Amount

Term is the number of months that payments must be made. The term is calculated in months, a 30 year mortgage will be calculated over 360 months and a 15 year VA mortgage will be based upon 180 months, and so on.

When calculating loan payments on a loan calculator, sometimes the calculator will simply ask how many years instead of how many months. However, the equation for how to calculate a loan is still essentially the same.

The interest rate is the note rate on the loan. Of course the loan amount is required in this calculation and when you have these three elements you can arrive at your monthly principal and interest payment, or simply “payment.”

One of the features of these four elements is that if you know any three of the four, you can find the fourth one. For example, by using the VA loan calculator you can enter the term, the rate and the loan amount to calculate loan payment.

But you may also find out the term of the loan by entering the payment, the loan amount and the interest rate. All four components are interdependent upon one another and if one piece of data is off then the other components will not be correct as well.

When figuring out how to calculate a loan payment, you also need to be aware of the VA mortgage loan options available to you. For instance, you might like to have a loan that is amortized over 28 years instead of 30 yet a lender won’t have that option as loan terms are typically offered in five year increments.

The Formula for How to Calculate a Loan Payment

Don’t try to calculate loan payments without a mortgage calculator, it’s really too complicated. But if you’re not faint of heart and remember your college math, the formula looks something like this:


What It Means


Principal (loan amount)


Interest rate


Length of the loan (term)


Monthly interest (in decimal form)


Number of months


Monthly payment

And the final formula looks something like this:

M = P * ( J / ( 1 – (1 + J) ^ – N)

Performing this formula by hand requires large exponents, which is where a payment calculator comes in handy. When you use our payment calculator, loan payment estimation is simple.

So take some time, open up the loan calculator and run a few “what if” scenarios on how to calculate a loan payment.

Contact Us

Are you ready to learn more about your options for a VA home loan? Click here to get free information or call us at 800-211-4940.

Our home loan experts can answer any questions you have and show you how to calculate a loan payment that you can afford.

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