VA Residual Income Calculator

See where you stand on VA residual income and DTI, using the same math a lender runs.

Home Loan Details

Home Purchase Price iThe purchase price of the home you are buying, before any down payment.

Down Payment iWhat you are putting down, as a percent of the price or a dollar amount. VA loans allow 0% down, so this can stay at 0.

Putting more down lowers your VA funding fee. On a first use purchase loan:
Less than 5% down: 2.15%
5% to less than 10% down: 1.5%
10% or more down: 1.25%

Subsequent use is higher only under 5% down, where it jumps to 3.3%. At 5% or more down it matches the same 1.5% and 1.25%.

Interest Rate iYour quoted annual interest rate. No quote yet? Use a current market estimate for a realistic payment. Check daily rates to get a good average. Click here.

Loan Term iThe loan length in years. Most buyers use 30 years. Shorter terms mean a higher payment and less total interest.

Home Square Footage iThe finished living area in square feet. It estimates monthly maintenance and utilities at $0.14 per square foot, currently $280.00/mo, used in the residual calculation.

Usage iFirst Use means this is your first time using your VA loan benefit. Subsequent Use means you have used it before, which raises the funding fee unless you are exempt.

First use funding fee:
Less than 5% down: 2.15%
5% to less than 10% down: 1.5%
10% or more down: 1.25%

Subsequent use funding fee:
Less than 5% down: 3.3%
5% to less than 10% down: 1.5%
10% or more down: 1.25%

A 10% or higher service-connected disability rating waives the fee entirely.

Service Related Disability (10+%)? iChoose Yes if you receive VA disability for a service connected rating of 10% or higher. Yes waives the VA funding fee.

Funding Fee

$8,600

Loan Amount

$408,600

Principal & Interest

$2,449.76/mo

Monthly Housing Costs

Property Taxes iEnter property taxes as a percent of the purchase price per year, or tap $/mo to enter the exact monthly amount from a tax bill or listing. Most areas fall between 1% and 2% per year.

= $500/mo

Homeowner's Insurance iEnter homeowner's insurance as a percent of the purchase price per year, or tap $/mo to enter a real quote. A common estimate is about 0.5% per year.

= $167/mo

HOA Dues iHomeowners association dues, if the property has an HOA. Some HOAs bill quarterly or annually, so tap /yr to enter the annual total instead. Leave it at 0 if there is none.

Other (flood insurance, etc.) iAny other monthly housing cost, such as flood insurance or a special assessment. Leave it at 0 if none apply.

Household

State iThe state where the home is located. It sets your VA region for the residual income tables and is used to estimate your state income tax.

Family Size iThe number of people living in the home, or who will live there once you move in. Include yourself, your spouse, and all dependents.

Childcare iThe monthly amount you pay to care for children 12 and under while you work or are away, such as daycare, after school care, or a sitter. Enter your monthly total, or 0 if none.

Texas counts as the South region for VA residual income tables.

Income iAdd every income source you receive. All of it counts toward residual income and DTI. Employment income, military base pay, retirement, second jobs, and self-employment are taxable and drive the estimated income taxes. BAH, BAS, VA disability, Social Security, and child support are non-taxable and never reduce your numbers. Rental income is counted at 75%, the same haircut a lender applies. BAH, BAS, and VA disability are also grossed up 25% in the DTI calculation, the same boost a lender gives tax-free income, though residual income always uses the real amounts.

Total Monthly Income

$7,000

Est. Income Taxes iEstimated the way a lender runs a quick paycheck check: 2026 federal brackets and standard deduction, Social Security and Medicare, plus an approximate state income tax for your state, calculated on a monthly basis with zero adjustments. Non-taxable income is excluded. Local taxes are not included.

$1,340/mo

Effective Tax Rate

19.1%

Monthly Liabilities iThe minimum monthly payments that show on your credit report: car loans, credit cards, student loans, and similar. Use the minimum due, not what you actually pay. Do not include utilities, insurance, or the home you are buying.

Are you obligated to pay alimony, child support, or separate maintenance? iThe same question every loan application asks. Court-ordered payments count as monthly debts even when they do not show on your credit report.

Total Monthly Debts

$500/mo

I am active duty or a retiree, I live near a military base, and I regularly use its facilities like the Commissary, Exchange, or Base Medical. Reduces the required residual income by 5%. Your lender verifies it, so only check it if it clearly applies to you.

PASS

Clearing the VA residual test with $696.77/mo to spare

Total Monthly Payment

$3,116.76

P&I $2,450 Taxes $500 Ins $167

Your Residual Income

$1,763.57

Required Minimum

$1,066.80

VA minimum at the white lineSurplus $697/mo

VA table base: $889.00 · Family of 3 · South · Loan $80k+5% active duty reduction applied

Debt to Income (DTI) Ratio iVA loans lean on residual income more than DTI, so there is no hard DTI cap. DTI is your monthly housing payment plus debts divided by income. As DTI climbs the VA wants more cushion: once it passes 41%, the required residual income jumps 20%, so a higher DTI means you need more left over each month to still qualify. Non-taxable income like BAH, BAS, and VA disability is grossed up 25% in this DTI math, the same boost a lender applies.

51.67%

51.7% of income toward debts41% cushion line

Over 41%: the required residual income gets a 20% cushion

Where Your Income Goes iYour gross monthly income, split the way the VA residual worksheet sees it. The bright slice is what is left after taxes, the full house payment, maintenance and utilities, debts, and childcare. That leftover is your residual income.

$1,764

left over/mo

Housing payment$3,117

Income taxes (est.)$1,340

Monthly debts$500

Maintenance & utilities$280

Residual (left over)$1,764

The math: gross income minus taxes, the full house payment, upkeep, monthly debts, and childcare. What is left is your residual income.

Understand Your Numbers

What is residual income?

It is the money left over every month after income taxes, the full house payment, maintenance and utilities, debts, and childcare. The VA treats it as the truest test of whether a family can actually afford a home, and it is a big reason VA loans have one of the lowest foreclosure rates of any loan type.

Why 41% DTI matters

VA loans have no hard DTI cap, so a 45%, a 55%, or even a 65%+ DTI can still be approved. The catch: once DTI passes 41%, your required residual income jumps by 20%. Keep DTI at 41% or below and you only need to clear the standard table for your region and family size.

Failing? Pull these levers

Pay down monthly debts. Every dollar of minimum payments you eliminate adds a dollar of residual income.
Lower the price or put 5%+ down. Both shrink the payment, and 5% down also cuts the funding fee.
Use your disability rating. A 10%+ rating waives the funding fee, and that income is never taxed.

Residual is one piece of the puzzle

Passing here is not an approval. A lender weighs your whole file: income, assets, liabilities, credit, and payment history. You can clear residual with room to spare and still hit a wall if your credit score or payment history is shaky, so keep both clean while you shop.

VA Loan Resource Center

You ran the numbers. Now get the full guide.

My complete VA Home Loan guide walks through eligibility, entitlement, funding fees, residual income, and closing, so you know exactly what to expect.

Download the Full VA Guide Book a Free Consultation

This calculator is an educational estimate, not a loan approval, a preapproval, or financial advice. It models the VA residual income and DTI guidelines, but a lender verifies your full file: income, assets, liabilities, credit, and payment history, and may apply its own overlays. Taxes, insurance, and maintenance figures are estimates that vary by property and location. Confirm your numbers with a licensed loan officer before making decisions.