About the Closing Costs Calculator
This closing costs calculator estimates what a home buyer pays at settlement, item by item. Instead of applying a single rule-of-thumb percentage, it builds the total from the pieces that appear on a Loan Estimate: lender origination and discount points, appraisal and other lender fees, title insurance and settlement services, government transfer taxes, prepaid interest and homeowners insurance, and the initial escrow deposit for property tax and insurance.
It then adds your down payment and subtracts any seller credit to show the cash you need to bring to closing. Use it while house hunting to budget realistically, or when you receive a Loan Estimate to see which items drive the total and which are worth shopping around.
Defaults reflect a typical US purchase, where buyer closing costs usually land between about 2% and 5% of the price. Title and transfer-tax charges vary widely by state and county, so replace the percentages with local figures or your lender’s quote when you have them.
With the default inputs, the estimated closing costs is $10,372.95. Change any value above to recalculate instantly.
How to use the closing costs calculator
- 1Enter the home price, down payment and mortgage rate.
- 2Enter lender charges from your Loan Estimate, or keep the typical defaults.
- 3Set title and transfer-tax percentages for your state or county.
- 4Enter yearly property tax and insurance, reserve months and prepaid-interest days.
- 5Add any seller credit, then read your closing costs and total cash to close.
Formula and method
Lender fees are the origination percentage and discount points applied to the loan amount, plus the appraisal and other flat lender charges. Title/settlement and transfer taxes are percentages of the purchase price. Prepaid interest covers the days from closing to the end of the month, calculated as loan × annual rate ÷ 365 × days.
Prepaids also include the first year of homeowners insurance, and the escrow deposit is the number of reserve months × (yearly property tax + yearly insurance) ÷ 12. Seller credits reduce the cash you bring but cannot exceed your actual closing costs.
- L
- Loan amount = price − down payment
- Prepaid interest
- L × rate ÷ 365 × days until month end
- Escrow
- (tax + insurance) ÷ 12 × reserve months
Worked examples
$350,000 home with 20% down (defaults)
On a $280,000 loan, a 1% origination fee plus appraisal and other lender fees total $4,300. Title adds $1,750, prepaid insurance and 15 days of interest $1,947.95, and a three-month escrow deposit $1,175. With $1,200 of other costs the total is about $10,373 (2.96% of the price), so you need about $80,373 including the down payment.
$500,000 home, 10% down, one point and 1% transfer tax
A $450,000 loan with a 1% origination fee and one discount point adds $9,000 plus $1,500 of flat lender fees. The 1% transfer tax is $5,000, title $2,500, prepaids $2,955.82, escrow $1,950 and other costs $1,200, for about $24,106 in closing costs (4.8% of the price) and $74,106 cash to close.
Seller pays $6,000 toward costs
A $6,000 seller concession does not change the closing costs themselves, but it reduces the cash you must bring from about $80,373 to about $74,373.
Frequently asked questions
How much are closing costs for a buyer?+
Buyer closing costs typically run about 2% to 5% of the purchase price. On a $350,000 home that is roughly $7,000 to $17,500, depending on lender fees, points, local title charges and transfer taxes.
What is the difference between closing costs and cash to close?+
Closing costs are the fees and prepaid items for the transaction. Cash to close is everything you bring to settlement: the down payment plus closing costs, minus any earnest money already paid, seller credits or lender credits.
Can closing costs be rolled into the mortgage?+
On a purchase you generally cannot add closing costs to the loan, but you can negotiate seller concessions or accept a lender credit in exchange for a higher rate. FHA, VA and many conventional loans cap how much the seller may contribute.
Which closing costs can I shop for?+
Your Loan Estimate lists services you can shop for, commonly title insurance, settlement or closing agent, survey and pest inspection. Lender origination charges and points can also be compared by getting Loan Estimates from several lenders.
Why do I have to prepay taxes and insurance?+
Most lenders collect property tax and insurance through an escrow account. At closing you prepay the first year of homeowners insurance and deposit a few months of tax and insurance so the account can cover bills as they come due.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.