Tool · Residual income

The VA’s signature test, on your numbers.

Residual income is the cash left over after every bill gets paid. It is the test the VA actually leans on, and the one most calculators skip. Enter your numbers and see where you stand against the official table.

Gross monthly income

Taxes withheld (%)

Fed + state + FICA; match your paystub.

Monthly debt payments

Proposed housing payment

Full PITI: principal, interest, taxes, insurance.

Household size

VA region

Home size (sq ft)

Educational tool, estimates only. Lenders compute residual income from your actual paystub deductions and verified obligations, not a flat withholding estimate.

Your monthly residual income

$2,248

VA requires $889 (South, household of 3).

Passes with $1,359/mo to spare, and it clears the 20% cushion lenders want when DTI runs above 41%.

Gross income: $6,250
− Taxes (est.): $1,250
− Debts: $500
− Housing (PITI): $2,000
− Maintenance + utilities: $252
Residual: $2,248

The VA residual income chart

Minimum monthly residual income by region and household size, for loan amounts of $80,000 and above. For households larger than five, add $80 per additional member (counted up to a family of seven).

Household size	Northeast	Midwest	South	West
1	$450	$441	$441	$491
2	$755	$738	$738	$823
3	$909	$889	$889	$990
4	$1,025	$1,003	$1,003	$1,117
5	$1,062	$1,039	$1,039	$1,158

Source: VA Pamphlet 26-7 (Lenders Handbook), Chapter 4, checked July 2026. Loans under $80,000 use a slightly lower table; this site conservatively applies the standard table to all loan sizes. When DTI runs above 41%, lenders generally want residual income at least 20% above these figures.

Why this test exists

Two families can have identical DTI ratios and completely different financial realities. A family of six spends more on groceries, utilities, and life than a single borrower with the same income. Residual income catches what ratios miss, and it is a big part of why VA loans default less than conventional loans despite requiring no down payment.

Want both this test and the DTI ceiling at once? The buying-power calculator runs the full dual test. For the concepts behind it, the glossary entry is a one-minute read.