VA Residual Income Calculator
Compare your leftover monthly income against VA's published residual income requirement for your region, household size, and loan amount.
Income and debts
Before taxes: wages, salary, taxable retirement pay.
VA disability compensation, BAH, other tax-free income. Not taxed in this estimate.
Leave at 0 to estimate 20% of taxable income. Include federal, state, Social Security, and Medicare.
Car loans, student loans, credit card minimums, child support.
Monthly childcare and other costs of working that lenders subtract.
Principal, interest, property taxes, insurance, and HOA.
VA estimates maintenance and utilities at $0.14 per square foot.
Household and loan
AL, AR, DE, DC, FL, GA, KY, LA, MD, MS, NC, OK, PR, SC, TN, TX, VA, WV
Everyone your income supports, including yourself (1–12).
VA uses a higher requirement table at $80,000 and above.
Your monthly residual income
Estimated$2,748
VA requires $889 for a household of 3 in the South region.
You clear VA's requirement by $1,859 per month (309% of the minimum). That's at least 120% of the minimum — strong enough to support a DTI above 41%.
Meets 120% of VA's minimum — supports a DTI above 41%.
How it breaks down
Requirement amounts come from VA's residual income tables in 38 CFR 36.4340(e). Maintenance and utilities use VA's $0.14 per square foot estimate. Unless you enter your actual taxes, they are estimated at a flat 20% of taxable income only.
Residual income
$2,748
Why residual income matters more than DTI
VA is the only major loan program that requires a residual income test, and it is the reason a veteran with a 50% debt-to-income ratio can still be approved while another borrower at 41% is declined. Underwriters look at what is genuinely left over each month for food, fuel, and the unexpected — not just a ratio.
When residual income exceeds VA's minimum by a comfortable margin, lenders can document it as a compensating factor and approve a higher DTI — or a lower credit score. See how that changes your budget in the VA affordability calculator, and how credit fits in the credit score guide.
Improve your residual income
The fastest levers are a smaller housing payment, a paid-off car loan, or a co-borrower's income. Because the housing figure drives the result, check your real payment — including the funding fee — with the VA mortgage calculator before assuming the shortfall is permanent. Requirements and underwriting basics are covered in the VA loan requirements guide.
Frequently asked questions
What is VA residual income?
Residual income is the money left over each month after your mortgage payment, other debts, and estimated taxes. VA publishes minimum amounts by region, household size, and loan size in 38 CFR 36.4340(e), and lenders must confirm you meet them.
Can residual income get me approved above 41% DTI?
Often, yes. VA guidance allows a debt-to-income ratio above 41% when residual income exceeds the requirement — commonly by 20% or more — with the lender documenting the compensating factors.
Does the region really change the requirement?
Yes. VA groups states into Northeast, Midwest, South, and West regions with different minimums, because typical living costs differ.
Which taxes are subtracted?
VA uses income net of federal, state, and payroll taxes. By default this calculator estimates taxes at a flat 20% of taxable income only — non-taxable income like VA disability compensation is never taxed. If you know your actual monthly withholding, enter it for a closer match to your lender's figure.
Why does home size matter?
VA's Lender's Handbook has lenders subtract maintenance and utilities at $0.14 per square foot of living area. A 1,800 sq ft home adds $252 a month to your expenses in the residual income test.
What to do with this number
Residual income is the VA-specific test. Passing it is often what lets a higher DTI get approved.
- How VA Residual Income Works
What counts, VA's regional minimums, and a worked example.
- VA Affordability Calculator
Turn that cushion into a purchase price.
Sources and last verified
- VA funding fee rates: VA.gov funding fee and closing costs
- Rates effective April 7, 2023. Last verified August 31, 2026.
- Payments use standard amortization. No lender-specific pricing is applied.
- What these estimates exclude: your lender's actual rate lock and fees, HOA dues, flood or mortgage-recording costs, escrow-shortage adjustments, and any county-specific tax exemption you may qualify for.
- Every formula and assumption is documented in how we calculate.
Written and reviewed by the Veteran Home Calc editorial team against VA's published guidance. Rates and program rules last reviewed August 31, 2026.
Veteran Home Calc is an independent educational site. It is not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and it does not sell leads or collect your numbers — results are estimates, not loan approvals, offers, or financial advice.