VA IRRRL Recoupment Calculator
Add up the closing costs that count toward recoup (lender fees, third-party fees and any discount points, minus any lender credits). Divide that by how much your monthly principal-and-interest payment goes down. The answer, rounded up, is your recoup in months. It must be 36 or less. The VA funding fee, escrow deposits and prepaid interest, taxes and insurance don't count.
Worked example, illustrative, not a quote: costs that count $3,000 after a lender credit. P&I savings of $120 a month. $3,000 / $120 = 25 months, which is a PASS under the 36-month test.
Do not include the VA funding fee, escrow deposits, or prepaid interest, taxes, and insurance. Those stay out of the recoup math.
Enter your current and new principal and interest payments to see a result.
Rates change daily. Talk to a real lender, Mon-Fri, 9 AM-6 PM PT.
Frequently asked questions
What counts toward recoup?
Lender fees, third-party closing costs and discount points, minus any lender credits.
Is the funding fee included?
No. The VA funding fee, escrow and prepaid items are left out of the recoup math.
What if my payment doesn't go down?
Then the costs can't be recouped, and the IRRRL generally won't pass the VA test.
Is this the same as break-even?
It's a stricter version. VA uses principal and interest savings only and caps recoup at 36 months.
Reviewed by Roland Suncire, Founder and President, NMLS 1196184. Last updated October 2026. Reviews