VA IRRRL Calculator

Updated October 2026

The VA Interest Rate Reduction Refinance Loan, or IRRRL, lets you refinance an existing VA loan into a new one at a lower rate with less paperwork than a standard refinance. This calculator compares your current payment with the new one, shows how long it takes to recoup the costs, and checks the VA's 36-month recoupment rule. With the defaults, refinancing a $320,000 balance with 27 years left from 6.5% to 5.5% lowers the payment by $243.94 a month and recoups $6,500 of costs in 27 months.

What makes an IRRRL different

• Streamlined: usually no appraisal and often no full income verification, though lenders set their own rules.
• Low funding fee: 0.5% of the loan amount, which can be rolled into the new loan. Veterans with a service-connected disability rating are generally exempt.
• Occupancy: you only need to certify that you previously lived in the home, so it works for a former residence you now rent out.
• VA to VA only: the existing loan must be a VA loan.

The rules your refinance has to meet

• Recoupment within 36 months. Fees and closing costs must be recouped through the lower payment within 36 months of the new loan.
• A real benefit. For a fixed-rate to fixed-rate refinance, the rate generally has to drop by at least half a percentage point.
• Seasoning. At least 210 days must have passed since the first payment on the existing loan, and six monthly payments must have been made.

How much the rate drop matters

Same $320,000 balance and $6,500 of costs, refinancing from 6.5% to a new 30-year loan:

Watch the total cost, not just the payment

Restarting a 30-year loan when you have 27 years left stretches the debt out. At 5.5%, the new loan still costs less in total than finishing the old one. At 6.0%, the lower payment comes with about $25,000 more in total payments over the life of the loan. If your goal is to save money overall rather than lower the monthly bill, choose a new term close to the years you have left, or keep paying your old payment amount on the new loan.

Compare a regular refinance with the mortgage refinance calculator, or check the break-even on any refinance with the refinance break-even calculator. Buying with a new VA loan instead? Use the VA loan calculator.

Frequently asked questions

Sources: U.S. Department of Veterans Affairs, Interest Rate Reduction Refinance Loan program; recoupment and seasoning requirements from 38 U.S.C. 3709. Not lending advice; confirm eligibility and terms with a VA-approved lender.