2026 VA Residual Income Calculator

Last updated October 2026.

How to use this calculator: enter your income, taxes, debts, and housing payment to see your leftover income. Then read residual income, explained, the manual underwriting guide, and the Help Center’s income topic.

Quick answer: what VA residual income is, and how the test works

Official VA residual income tables

These are the current tables from VA Lenders Handbook (Pamphlet 26-7), Chapter 4, Topic 9, and they match 38 CFR 36.4340. Use the table for your loan amount: most purchases use the $80,000 and above table.

Loan amounts of $80,000 and above

Loan amounts of $79,999 and below

Regions: Northeast is Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. Midwest is Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. South is Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, Virginia, and West Virginia. West is Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

Household size means everyone in the household, not just people on the loan, including a spouse who is not on the note and anyone who depends on you for support. One exception: a lender can leave out someone who is fully supported by their own verified income that is not counted on your loan. Families larger than 7 use the 7-person figure: the handbook's own example is a family of 8 in Georgia, which uses the 7-person South figure of $1,199, because the eighth person is not counted.

Five percent reduction: the required figure from the table is reduced by 5% when the borrower is active duty or retired military, or when there is a clear indication the borrower will benefit from military-base facilities near the property (for example Guard and Reserve retirees, 100% disabled veterans and their families, and Medal of Honor recipients). The calculator above applies this automatically when you switch on the active duty toggle.

Worked example 1: a straightforward pass

A veteran buying in Ohio (Midwest) with a $250,000 loan and a household of 4. The Midwest table figure for a family of 4 on a loan of $80,000 or more is $1,003.

Debt-to-income on the same file: debts of $2,250 against grossed-up income of $7,875 (the $1,500 of tax-free disability income grossed up to 125% for the ratio only, per Chapter 4, Topic 9) gives 28.6%, comfortably within the 41% guideline. Note that the gross-up applies to the debt-to-income ratio only; residual income always uses actual dollars.

Worked example 2: high debt-to-income, strong residual income

A veteran buying in the South with a $200,000 loan and a household of 3. The South table figure for a family of 3 is $889.

Debt-to-income here is $2,700 in debts against $6,000 in income, or 45%, above the 41% guideline. Under Chapter 4, Topic 10, a file above 41% normally needs a supervisor-signed statement justifying the approval and listing the compensating factors, unless residual income exceeds the guideline by at least 20%. Here residual income of $1,948 is about 119% above the $889 guideline, far past the 20% cushion, so no supervisor statement is required for that reason alone. This is exactly how a veteran with a high debt-to-income ratio can still qualify: strong residual income carries the file.

Worked example 3: around the 20 percent line

A veteran buying in the South, household of 3. The South table figure for a family of 3 on a loan of $80,000 or more is $889, and 120% of that figure is $1,067. Gross monthly income is $3,200. A housing payment of $950 plus other monthly debts of $426 gives $1,376 in debts, a debt-to-income ratio of 43%, above the 41% guideline. Taxes and payroll withholding are $420, maintenance and utilities on 1,200 square feet at 14 cents are $168, and child care is $150. Residual income is $3,200 less $420 less $950 less $426 less $168 less $150, which is $1,086. That is about 122% of the $889 guideline, past the 20% cushion, so no supervisor-signed statement is required for the ratio alone. If child care were $300 instead of $150, residual income would be $936, about 105% of the guideline: above the guideline, but below the 20% cushion, so the supervisor-signed justification would still be required for a file above 41%. The same file, one expense different, and the paperwork changes.

Residual income and debt-to-income: how they work together

VA's 41% debt-to-income figure is a guideline, not a hard cap, and it is not a VA rule that a file above 41% must be denied. What happens above 41%:

• The file gets closer review, and the underwriter must document compensating factors.
• If residual income exceeds the regional guideline by at least 20%, the supervisor statement is not required for the ratio alone.
• Residual income itself is never "grossed up." Only tax-free income used in the debt-to-income ratio may be grossed up to 125% of its actual amount, and only after verifying it is genuinely tax-free and likely to continue.

Compensating factors (Chapter 4, Topic 10) that can support a marginal file include excellent credit history, conservative use of consumer credit, minimal consumer debt, long-term employment, significant liquid assets, a sizable down payment, little or no increase in shelter expense, military benefits, satisfactory homeownership experience, high residual income, a low debt-to-income ratio, and the tax benefits of homeownership. Two limits matter: simply meeting the residual income guideline is not itself a compensating factor (it has to be a strength beyond the requirement), and compensating factors cannot excuse a genuinely poor credit history. If your file was declined at a lender that does not do manual underwriting, read about VA manual underwriting and VA loans with bad credit, and see the plain-English walkthrough in Chapter 4: Credit Underwriting.

Debt-to-income by residual income: how the two tests interact

Does VA residual income include child support?

It depends on which direction the support flows. Child support you receive counts as income, and because it is tax-free income it stretches further in the residual income calculation; the lender must verify it is stable and likely to continue. Child support you pay is a liability: the handbook lists alimony and child support payments among the debts and obligations subtracted before residual income is figured. Child care costs are also subtracted as a job-related expense (the handbook puts the lender on the hook for determining child care expenses for children up to age 12).

What happens if your residual income is below the required amount?

A shortfall does not automatically end the file, but it does change the conversation. The underwriter looks for compensating factors that logically offset the specific weakness, significant liquid assets being the classic example for a residual income shortfall. Long-term employment generally cannot offset it. A lower housing payment, a smaller loan, paying off a monthly debt, or documenting income the file missed can also move the number. If an automated system declined the file, manual underwriting is the route where a human underwriter weighs those factors: how VA manual underwriting works.

Frequently asked questions

How much residual income do I need for a VA loan?

It depends on your region, your household size, and your loan amount. For a loan of $80,000 or more, a family of four needs $1,025 in the Northeast, $1,003 in the Midwest or South, and $1,117 in the West. Smaller loans use a lower table, and households of six or seven add $80 per additional member ($75 on smaller loans).

What is the VA residual income requirement for a family of four?

For loans of $80,000 or more: $1,025 (Northeast), $1,003 (Midwest), $1,003 (South), $1,117 (West). For loans under $80,000: $888 (Northeast), $868 (Midwest), $868 (South), $967 (West).

Can I qualify for a VA loan with a high debt-to-income ratio if I have enough residual income?

Yes, often. VA's 41% debt-to-income figure is a guideline, not a hard cap. If your residual income exceeds the regional guideline by at least 20%, no supervisor statement is required for the ratio alone. Strong residual income is the compensating factor underwriters lean on most for high-ratio files.

How do I calculate VA residual income?

Start with gross monthly income, subtract income taxes and payroll withholding, subtract the full housing payment including taxes, insurance, and HOA dues, subtract all other monthly debts and child care costs, and subtract a maintenance and utility estimate of 14 cents per square foot of gross living area. Compare what is left to the VA table for your region and household size.

Does VA residual income include child support?

Child support you receive counts as tax-free income. Child support you pay is subtracted as a liability. Child care costs are also subtracted as a job-related expense.

What happens if my VA residual income is below the required amount?

A shortfall does not automatically deny the file. The underwriter looks for compensating factors that offset the specific weakness, such as significant liquid assets. A lower payment, a smaller loan, or paying off a debt can also fix the number. Manual underwriting is where those factors get weighed by a person instead of an automated system.

Does the 5% residual income reduction apply to me?

The required figure from the table is reduced by 5% when you are active duty or retired military, or when there is a clear indication you will benefit from military-base facilities near the property, for example Guard and Reserve retirees, 100% disabled veterans and their families, and Medal of Honor recipients. The calculator above applies this automatically when you switch on the active duty toggle.

Does tax-free income get grossed up for residual income?

No. Residual income always uses actual dollars. Only tax-free income used in the debt-to-income ratio may be grossed up to 125% of its actual amount, and only after verifying it is genuinely tax-free and likely to continue.

Sources: VA Lenders Handbook (Pamphlet 26-7), Chapter 4, Topic 9 (residual income tables, 14 cents per square foot maintenance and utility figure, family-size rules, 5% reduction, tax-free income gross-up at 125% for the debt-to-income ratio only) and Chapter 4, Topic 10 (41% debt-to-income guideline, supervisor statement rule, 20% residual income cushion, compensating factors); 38 CFR 36.4340 (same tables). Run your own numbers in the VA residual income calculator above, or start with the plain-English Chapter 4 guide.

Residual income matters more than the score alone. For the score bands behind that statement, see credit score bands for VA loans.